Hot Listing
30 Yr San Diego MSP w/ $430K+ Recurring Rev. and Almost Zero Overhead
Business Description
Established San Diego managed IT services provider, in continuous operation since 1995, with one of the most loyal customer bases you will find at this size. The company delivers managed services, cloud hosting, and recurring infrastructure support to long-tenured Southern California businesses, with over 90% of clients on board for 20+ years. Roughly 57% of revenue is recurring and billed monthly. Gross margins have held between 34% and 36% for five straight years through meaningful top-line swings. For a buyer looking for a deeply rooted book of IT services business with a senior technician in place and a retiring owner committed to a clean handoff, this is it.
Top Reasons to Acquire:
—Seller Financing Available: the owner is open to carrying a note for a qualified buyer, keeping the down payment manageable and the seller invested in your success.
—$89K Average Cash Flow: three-year average SDE of $89,258, with FY25 rebounding to $97,173.
—57% Recurring Revenue: over $430K in annual recurring revenue billed monthly across service agreements, hosting, and infrastructure contracts.
—Almost No Fixed Overhead: rent is negligible and costs flex with revenue. The recurring base carries the operation before a single new sale is made.
—Unmatched Customer Loyalty: more than 90% of clients have been with the business 20+ years.
—Key Technician in Place: a senior engineer with deep Linux and systems expertise handles the heavy technical lifting. An employment agreement will be a condition of any accepted offer.
— Retiring Owner: exiting after 30 years with full training and transition support.
Financial Performance:
FY23 (Apr 2023 - Mar 2024): Revenue $828,685 - SDE $108,632
FY24 (Apr 2024 - Mar 2025): Revenue $690,911 - SDE $61,968
FY25 (Apr 2025 - Mar 2026): Revenue $762,713 - SDE $97,173
3-Year Average SDE: $89,258 (per company financials)
This is a turnkey operation for a technically capable owner-operator. On day one, the buyer steps into a recurring revenue base, a senior engineer handling advanced technical work, and accounts that have renewed month after month for decades. Businesses with this depth of customer tenure rarely come to market.
Key Highlights:
— Hard to Break, Easy to Grow: This is one of the lowest-risk structures you will find at this price point. There is almost no fixed expense to feed: rent is close to zero, no fleet, no inventory, no equipment burden, and costs are nearly all direct service delivery that scale up and down with revenue. The buyer's only real job is to go sell.
—Recurring Revenue Engine: Monthly-billed agreements produce a predictable base, customers pay reliably, and bad debt has been negligible across five years of financials.
—Technical Depth: The senior engineer on staff is regarded by the owner as one of the best systems minds in the industry. His compensation is already reflected in the cash flow, and his retention agreement is built into the deal.
—Forward Earnings Improvement: The completed infrastructure migration removes $15-19K in annual licensing expense, a direct add to future cash flow not yet reflected in historicals.
—Growth Levers: The business runs on zero outbound sales and marketing. Modest sales effort, updated pricing, and expanded service packages are all untapped.
Top Reasons to Acquire:
—Seller Financing Available: the owner is open to carrying a note for a qualified buyer, keeping the down payment manageable and the seller invested in your success.
—$89K Average Cash Flow: three-year average SDE of $89,258, with FY25 rebounding to $97,173.
—57% Recurring Revenue: over $430K in annual recurring revenue billed monthly across service agreements, hosting, and infrastructure contracts.
—Almost No Fixed Overhead: rent is negligible and costs flex with revenue. The recurring base carries the operation before a single new sale is made.
—Unmatched Customer Loyalty: more than 90% of clients have been with the business 20+ years.
—Key Technician in Place: a senior engineer with deep Linux and systems expertise handles the heavy technical lifting. An employment agreement will be a condition of any accepted offer.
— Retiring Owner: exiting after 30 years with full training and transition support.
Financial Performance:
FY23 (Apr 2023 - Mar 2024): Revenue $828,685 - SDE $108,632
FY24 (Apr 2024 - Mar 2025): Revenue $690,911 - SDE $61,968
FY25 (Apr 2025 - Mar 2026): Revenue $762,713 - SDE $97,173
3-Year Average SDE: $89,258 (per company financials)
This is a turnkey operation for a technically capable owner-operator. On day one, the buyer steps into a recurring revenue base, a senior engineer handling advanced technical work, and accounts that have renewed month after month for decades. Businesses with this depth of customer tenure rarely come to market.
Key Highlights:
— Hard to Break, Easy to Grow: This is one of the lowest-risk structures you will find at this price point. There is almost no fixed expense to feed: rent is close to zero, no fleet, no inventory, no equipment burden, and costs are nearly all direct service delivery that scale up and down with revenue. The buyer's only real job is to go sell.
—Recurring Revenue Engine: Monthly-billed agreements produce a predictable base, customers pay reliably, and bad debt has been negligible across five years of financials.
—Technical Depth: The senior engineer on staff is regarded by the owner as one of the best systems minds in the industry. His compensation is already reflected in the cash flow, and his retention agreement is built into the deal.
—Forward Earnings Improvement: The completed infrastructure migration removes $15-19K in annual licensing expense, a direct add to future cash flow not yet reflected in historicals.
—Growth Levers: The business runs on zero outbound sales and marketing. Modest sales effort, updated pricing, and expanded service packages are all untapped.
About the Business
- Currently Home Based
- Yes
About the Sale
- Financing Options
- $125k down, $200k seller note, paid back in 5 years 6.5% interest
Listing Info
- ID
- 2528771
- Listing Views
- 30
Listing ID: 2528771 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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