Recently, we've been looking to divest our services arm, that has a gross margin of >60%. We haven't calculated adj. EBIDTA as currently this is part of our company that is more focussed on products. That said SG&A is low and EBITDA would be high too. 80% of the engg. headcount is in India and everything else is managed here in the US. It generates a high single digit $mn in revenue and is still growing with almost no sales headcount aligned to it today. Clients base is 100% US.
Does anyone have any experiences buying or selling such a company? Any guidance on valuation and the actual buy/sell process would be very helpful.
Interest in high gross margin services business with engg. team outside US
by a searcher from Stanford University - Graduate School of Business
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
66 views
7 comments
Sign in to see all replies.
Create an account.