Filters
LocationSouth Africa, Gauteng

Sector - Sales & Services

Asking Price
R20,000,000
Monthly Profit
R 561,193
Asset Value
R 3,728,645
Stock Value
R 0
Yearly Net Profit
R 6,734,320

Summary

Once in a lifetime opportunity to own and become the CEO your own highly profitable world-class company with the following key features. 1) Triple digit top-line revenue growth, year-on-year. 2) Average gross profit of > 85%. 3) Adjusted EBTIDA margin of 41% which is well above industry benchmarks. 4) Project revenue and subscription revenue-enabled business model. 5) Established customer base across Africa and the Middle East. 6) The company has a has a fantastic culture and an incredibly loyal and hardworking team that exemplifies the company’s ambitious culture.

Give me more information

Fully describe the business's activities?

The business a specialist B2B demand generation and pipeline acceleration business. Born out of the technology sector, the company combines digital content creation and syndication across channel partners with robust data intelligence principles and technology.

Collecting and augmenting inbound leads with publicly sourced data, the company qualifies and nurtures leads to provide clients with highly convertible sales leads that deliver maximum ROI.

In its first year, the won Africa’s Best Tech Startup Award (2019) at Africa Tech Week and established itself as the ‘Ferrari of Lead Generation’ for technology businesses from Cape Town to Cairo and beyond.

Its portfolio of customers includes some of the largest technology brands by market cap in the world, including, Microsoft, SAP, IBM, Oracle, Workday, Checkpoint to name a few. The company has relationships with largest distributors in the Middle East and Africa, including First Distribution, Tarsus, Pinnacle, Rectron, Westcon, MC3, Axiz, Liquid Telecom, and many others.

The company's proprietary methods and solutions has generated $24 million / R350 million for their customers in over 50 countries and 200 industries.

How does the business operate on a daily basis?

The business operates with an executive management team on a daily basis with little supervision from the owner. The owner is primarily responsible for closing big deals for the business.

What competition exists?

There is no direct competition for the business within the technology sector. Indirect competitors include digital marketing agencies who rely solely on digital inbound channels as the primary source of acquisition.

The company differentiate itself by using both digital inbound- and outbound calling as well as platform technology to acquire new customers for its clients.

How could the profitability of the business be improved?

Within the technology sector budgets typically range between $10,000 and $30,000. It is difficult to charge higher prices in this space and operational efforts have been made to maximise profitability within this tech sector with gross margins exceeding 80%. The business enjoys an adjusted EBTIDA margin of 43% which is well above industry benchmarks.

The company's growth has been primarily from the tech sector. The company plans to expand into new industries as from the third quarter of the 2022 financial year.

In addition the technology product aspect of the business has significantly higher profit margins as it is very effective and efficient and does not require significant investment of human resources to to deliver tangible results.

Give a breakdown of staff/ functions/ length of service?

- 4 x Pre-sales Agents
- 1 x Pre-sales Supervisor
- 1 x Pre-sales Director
- 2 x Sales Executives
- 1 x Data Officer
- 1 x Lead Creative
- 1 x Lead Multimedia Designer
- 1 Software Engineer
- 1 x Customer Success Manager
- 1 Technology Manager
- 1 x Chief Technology Officer
- 1 x Product Director
- 1 x RevOps Manager
- 1 x Managing director (Seller's wife)
- 1 x CEO (Seller)

Do any have management potential?

Yes, the following members of the management team have more management potential and are able to run the company in the absence of the CEO:
- Product Director;
- Revenue and Operations Manager.

How involved is the Owner in running the business?

The owner is primarily involved in the area of business development (50%). The executive management team manages the business on a daily basis.

Existing customers account for 66% of the company's revenue.

What are the working hours?

8 – 5 or until the job gets done.

What are the main assets of the business?

The main assets of the business is its Intellectual Property tied-up in their staff and their proprietary software and platforms.

A fixed asset register with all tangible assets is available is on file.

Strengths?

The business has a strong brand and reputation in the market and is backed up by proprietary systems, processes, technology and intellectual property combined to make it a compelling proposition to customers in the market.

Weaknesses?

Uncertain market conditions and a decision maker that is hesitant to invest in lead generation activities because of the uncertainty that currently exists within the market.

Opportunities?

The introduction of their new Channel Intelligence Platform into the market and customer base is a key growth channel and will likely contribute the greater revenue share in 2 – 3 years’ time. This platform is sold on a subscription basis in USD.
The business should also diversify into adjacent industries and geographical markets to continue its exponential growth track, unlock additional profitability and scale into its next S-curve.

Threats?

The number one threat to the business is slow payments being received from its customers for work commenced on behalf of clients. If not properly managed, this can This can result in a negative working capital cycles from time to time.

What is the reason for the sale?

The owner is a serial entrepreneur who has started and sold various business over the years and now wants to pursue his next entrepreneurial interest.

Location

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Wynand

Wynand Wolmarans

LocationSouth Africa, Gauteng

Preferred method of contact

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