16-Year ERP Consulting Firm, Platinum SAP & MS Dynamics MSP

$2.6M

Revenue

$708K

SDE

5.7x

Multiple

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Full Editorial Writeup

WebsiteClosers® presents a 16-year-old ERP consulting firm that delivers enterprise-grade SAP services, Microsoft Dynamics deployments, and Cybersecurity Compliance services to mid-market companies. Founded in 2009, they have steadily climbed the SAP partnership ladder until they hit the platinum level. As more companies pressed for stronger data security, the business rolled out their own Cybersecurity compliance services to meet the high demand. About 20 to 25 active clients count on this new service. Over their 16-year history, the business has built a reputation for white glove execution and predictable outcomes, securing platinum-level SAP partner status and responding swiftly to the shift toward cloud-based ERP solutions. A Recurring Revenue Model 90 % of their revenue is recurring from services like managed services, CMMC, SAP services, & Dynamics 365 that span 1 to 3 years, with an average client relationship lasting 8 years. Those agreements auto-renew under a 30-day exit clause, creating predictable cash flow. The business generated $2.56 million in sales in 2024 and $707,680 in earnings, all without spending a dollar on paid marketing. Day-to-day operations require about 10 hours per week from the seller, with another 20 hours focused on client acquisition. A lean mix of full-time staff and long-term contractors keeps overhead low and retention high. Each consultant brings over 20 years of hands-on experience, allowing the firm to compete head-to-head with larger players. Business Brokers Takeaway We are excited about this business for 3 important reasons: 1. Reliable Revenue with Loyal Clients. This consulting firm makes a steady income via long-term managed services contracts. Around 90% of their sales come from clients who generate recurring revenue year after year, staying with the company for an average of 8 years. This gives any buyer a predictable, stable cash flow right from the start, making it easy to plan for growth. The business is already com

Why we like it

Earnings quality is strong for a services business: 90 percent recurring revenue across one-to-three-year auto-renewing contracts with a 30-day exit clause, and eight-year average client tenure. That combination gives a buyer visibility into cash flow from day one, and the $707,680 in earnings was generated with zero paid marketing spend.
The moat is real switching cost. ERP systems (SAP and Dynamics) sit at the core of a client's operations, and CMMC/cybersecurity compliance is regulatory and recurring, so ripping out a trusted platinum-tier partner is expensive and risky. Platinum SAP partner status is the highest tier and is hard to replicate, which limits competitive displacement.
Tailwinds are favorable: mid-market migration to cloud ERP, ongoing Dynamics 365 adoption, and mounting cybersecurity/CMMC compliance mandates (especially for defense-adjacent clients) all expand the addressable spend. The firm already rolled out compliance services to meet demand and has 20 to 25 clients on it with room to cross-sell.
Operator advantage is meaningful. Delivery is handled by senior 20-plus-year consultants and long-term contractors, and the seller only spends about 10 hours a week on operations. A buyer who can build or hire a dedicated sales function can absorb the 20 hours of owner client-acquisition work and scale without touching delivery quality.

How to improve it

Build a repeatable outbound sales motion to replace the owner's 20 hours per week of client acquisition. Hire one or two dedicated business development reps with ERP/compliance backgrounds so growth is not gated by the seller's personal relationships, which is the single biggest lever and risk.
Systematically cross-sell CMMC and cybersecurity compliance into the existing SAP and Dynamics base. Only 20 to 25 clients use compliance services today, so mapping the full client roster and pitching compliance to the rest is high-margin expansion with near-zero acquisition cost.
Turn the zero-paid-marketing story into a modest, measured demand engine. Layer in targeted LinkedIn and SAP/Dynamics ecosystem content, partner co-marketing through the platinum program, and case studies to create inbound pipeline that does not depend on the founder's network.
Formalize contractor relationships and delivery documentation to de-risk key-person exposure. Since each consultant carries 20-plus years of specialized knowledge, put retention agreements, non-competes where enforceable, and documented playbooks in place so client relationships transfer to the firm rather than the individual.
Push clients toward longer contract terms and multi-year prepay incentives. The current one-to-three-year contracts with a 30-day exit clause are strong but leavable, so offering pricing discounts for longer commitments would tighten the recurring base and improve valuation.
Institute annual price escalators tied to inflation or scope. Long eight-year relationships often carry legacy pricing, so reviewing the book for underpriced accounts and adding contractual CPI-linked increases can lift margin without adding a single client.
Explore a tuck-in of a smaller Dynamics or MSP shop to add consultants and clients. With a proven delivery model and platinum SAP credentials, acquiring capacity is often cheaper than building it and immediately expands the recurring base.

Diligence notes

Verify the 90 percent recurring claim by reviewing the actual contract book: term lengths, renewal history, and how much revenue is truly subscription-style managed services versus project-based SAP/Dynamics implementation work that only recurs when a new project lands. The 30-day exit clause means recurring is real but cancellable, so quantify actual churn over the past three years.
Test client concentration hard. With only 20 to 25 clients on the compliance line and a small overall base implied by $2.56 million in revenue, confirm what percentage of revenue and earnings the top three to five clients represent, since losing one large account could materially change the picture.
Scrutinize the platinum SAP partnership terms and transferability. Platinum status often carries revenue thresholds, certification requirements, and consultant headcount minimums, so confirm the partnership survives a change of ownership and that the certified consultants are contractually committed to stay.
Quantify owner dependence in sales. The seller spends 20 hours a week on client acquisition with no paid marketing, which suggests deals close on personal reputation and relationships. Understand how much of the pipeline and renewals are personally tied to the seller and what transition support is offered, since none was disclosed.
Examine the contractor-heavy delivery model for risk and margin durability. Confirm which consultants are employees versus 1099 contractors, whether they work exclusively for the firm, and whether any could leave and take clients with them, which is a common failure mode in boutique consulting.

Source

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