INTEREST IN HIGH GROSS MARGIN SERVICES BUSINESS WITH ENGG. TEAM OUTSIDE US

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.



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