Enterprise Software & AI Development Firm, 14-Year Cincinnati Services Shop · Accredited

Published NOV 4, 2026

Enterprise Software & AI Development Firm, 14-Year Cincinnati Services Shop

Cincinnati, Ohio

$3.2M

Revenue

$975K

SDE

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Andy

Ben Sampson

Full Editorial Writeup

This is a 14-year-old enterprise software engineering firm founded in 2012 that builds secure, production-grade systems for organizations that cannot tolerate delivery failure. The service mix spans custom web and mobile development, AI development, blockchain/Web3, UI/UX design, fractional CTO advisory, and contracted hosting and maintenance. It operates as a single company across a US LLC in Ohio and a Canadian corporation in Ontario, with roughly 60 people delivering 100% remotely across the US, Canada, and Pakistan, billed at North American rates. The offshore delivery center is run by a co-founder, which is the core of the firm's margin advantage.

The business is mid-transition from project-based custom development toward managed AI services, with AI-related work now estimated at 35-40% of revenue. It has built a multi-tenant AI platform in house (live in four municipalities with seven more onboarding) and launched a fixed-fee two-week AI Jumpstart funnel that converts into roughly $85K of three-year platform value per client. About 15 engineers have moved through Anthropic certification, which is a credible differentiator versus generalist agencies that subcontract their AI work.

The financial profile is attractive for a services firm of this size: TTM revenue of roughly $3.1M (up 34% year over year), SDE of $975K at a 31.5% margin, and gross margin expansion from 41.8% in 2024 to 52.1%. Revenue sits across four long-running anchor clients at roughly 20% each plus one-off projects, with master services agreements and a right of first refusal on development for the two largest product clients. Enterprise references include a global pharma company, a hospital network, a diagnostics company, and two universities.

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Attack customer concentration by diversifying the anchor base, since four clients each represent roughly 20% of revenue and the loss of any one would cut top line by a fifth. Use the right of first refusal and MSAs to deepen wallet share while simultaneously pushing new logo acquisition through the Jumpstart funnel. The goal in year one is to get no single client above 15% of revenue.
Scale the AI Jumpstart funnel aggressively, since a fixed two-week entry engagement starting at $6,300 pulled 10 leads in its launch month with essentially no dedicated sales team. Put paid acquisition and a defined SDR process behind it and track Jumpstart-to-platform conversion as the core KPI. Each conversion is worth roughly $85K over three years, so even modest funnel improvement compounds fast.
Finish SOC 2 certification in the first 90 days of ownership because the listing explicitly notes it opens regulated mid-market buyers. With pharma, hospital, and diagnostics references already in hand, the compliance gap is the thing standing between the firm and a much larger addressable market. This is a known, bounded project with an outsized revenue unlock.
Replatform the municipal AI product into the two verticals already identified (law firms and clinical trials), since the engineering cost of a multi-tenant platform is largely sunk. Each new vertical multiplies the subscription base without rebuilding the core, converting a one-year engineering investment into recurring annuity revenue. Prioritize the vertical with the fastest sales cycle to prove the playbook.
Convert more revenue into contracted hosting, maintenance, and subscription lines to lift the recurring mix above the current one-off project tail (~20% of revenue). Recurring revenue both stabilizes cash flow and materially raises the exit multiple relative to a project-shop comp. Bundle AI agent builds and annual subscriptions into standard client renewals.
Build the sales infrastructure the business has never had, formalizing pipeline, CRM discipline, and quota-carrying reps beyond the first hires in Ohio and Boston. A delivery-led firm with no sales muscle has been growing 34% on referrals alone, which means a properly resourced sales team should accelerate growth meaningfully. This is the single largest lever to justify a premium acquisition price.
De-risk the offshore delivery center by documenting its processes and cross-training leadership, since most of the team sits in an offshore center run by a co-founder who may exit. The margin advantage depends on this center functioning smoothly, so continuity planning here protects the whole thesis. Consider retention agreements for key delivery leads during the transition.

Diligence notes

Scrutinize customer concentration and contract terms in detail, since four anchors at roughly 20% each means revenue durability hinges on a handful of relationships. Review the MSAs and the right of first refusal language to confirm they are binding, assignable on change of control, and not expiring soon. Ask for the historical revenue by client over the full 14 years to see how sticky these relationships actually are.
Reconcile the growth and margin story carefully, because the listing cites both $3.22M gross revenue and TTM revenue of $3.10M up 34%, plus a gross margin jump from 41.8% to 52.1% in one year. Confirm which figure is current, whether the margin expansion is sustainable or driven by a temporary labor mix shift, and get audited or CPA-reviewed financials for both the US LLC and the Canadian corporation. A one-year margin spike warrants proof it holds.
Validate the AI transition claims rather than taking them at face value, including the 35-40% AI revenue estimate, the four live municipalities, and the seven onboarding. Confirm the multi-tenant platform actually generates recurring subscription revenue today versus being a cost center still seeking paying customers. Verify the Anthropic certification status of the 15 engineers and whether any key certified staff are exiting with the owners.
Assess key-person and offshore delivery risk closely, since most of the team works in an offshore center run by a co-founder and leadership sits in Ohio and Ontario. Determine which partners are staying, for how long, and what happens to the offshore center if the co-founder leaves. The firm's margin profile and delivery capacity both depend on this arrangement surviving the sale.
Clarify the deal structure and cross-border complexity given the US LLC plus Canadian corporation operating on consolidated management reporting. Understand the tax, legal, and employment implications of acquiring entities in two countries plus contractors in Pakistan, and whether the team is employed or contracted. Since asking price is undisclosed, press for the multiple being sought against $975K SDE before investing diligence time.
Examine the SDE calculation and add-backs, since a 31.5% SDE margin on a people-heavy services firm is high and may include owner-dependent earnings. Confirm what owner compensation and discretionary expenses are being added back, and model the true cash flow after hiring the sales team and management the business currently lacks. The real post-transition earnings number is what matters, not the headline SDE.