IT / Telecoms businesses for sale in London

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Telecoms and IT Service Provider

London, England

  • Leasehold Price: Offers Invited
  • Under Offer
  • Annual Turnover: £2,716,000
  • Annual Gross Profit: £887,000
  • Annual Net Profit: £66,000
Seller Reference: HIM116
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Business Description
 
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Seller Reference: HIM116
Request Details
Business Description
An opportunity to acquire a UK-based telecoms and IT multi-layered services provider delivering leading edge services to contracted telecoms partners.

The company has developed innovative technology, systems, processes and sales strategies over 10 years in the UK and from a 20-year pedigree overseas, to enable a distinct position in the UK telecoms industry. The company benefits from a successful model that has been operating for over 17 years in the United Kingdom, Australia and New Zealand, with over 350 client-partners worldwide.

The business operates under a unique concept, successfully implemented in three overseas territories, resulting in the recent sale of one overseas territory for over £20m. Positioned as a ‘Start-up Telecoms Specialist or Integrator’, this business offers a complete package of telecoms and IT services and support for sole traders and SME’s. The company provides its Partners and Franchisees, within less than 2 weeks, a fully functional telecoms reseller business with access to a full suite of wholesale telecoms and IT services, marketing, and customer services products from the majority of Tier 1 UK carriers to sell to their customers on day one (immediate to market).

By delivering the full suite of telecoms back-end services plus the range of wholesale business grade Voice, Data and Mobile products to its Partners, the business has built an active base of over 50 telecoms companies (Partners) and are adding on average one new Partner every 2 months. The company enables its Partners to sell fixed line, data connectivity, mobile and other telecoms services to over 4,000 end customers.

The company also operates with a distinct franchise model, enlisting franchisees to set up their own telecoms business, add telecoms to an existing business or for experienced telecoms dealers and resellers to enhance their brands. The full franchise program involving an upfront franchise fee has recently been launched successfully following the company achieving accreditation by the British Franchise Association (BFA). This franchising opportunity is already proving attractive to the market.

The company has achieved a consistent recurring revenue base, with the majority of partners currently signed up on multi-year contracts, with their own end clients consuming sticky next generation products. This opportunity carries huge potential to scale and the company anticipates that through proper investment or being acquired by or merging with another like-minded local telecoms group, significant growth could be achieved by turning an existing telecoms dealer network into real telecoms companies locking in long term revenues, customers and dealers on a long-term basis.

This company has built a proven model of integrated systems & expertise which can enable dealers or resellers of major telecoms groups to convert into their own Telco’s or can also act as a highly effective and stable platform for private equity firms wishing to consolidate a group of companies in the telco sector.

Highlights
• Successful model operating for over 17 years, in 3 different countries
• British Franchise Association (BFA) approved
• Full Franchise program now being marketed with success – each paying £20,000 Ex VAT to onboard Vs £9,000 Ex VAT Self-Starter Channel
• Significant professional front & back office operations
• Established and consistent recurring revenue base
• Significant opportunity to scale
• Clients (partners) signed on multi-year contracts
Tenure:
Leasehold
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