Interest in high gross margin services business with engg. team outside US
November 29, 2020
by a searcher from Stanford University - Graduate School of Business in Cupertino, CA, USA
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.
from Northwestern University in New York, NY, USA
from University of California, Berkeley in San Francisco Bay Area, CA, USA