Microsoft Security & Infrastructure IT Consulting Firm, 16-Year Specialist

$5.2M

Revenue

$741K

SDE

4.0x

Multiple

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Full Editorial Writeup

This is a 16-year-old specialized IT consulting firm that operates as the expert bench Microsoft channel partners and system integrators call when critical security and infrastructure projects need specialized talent fast. The work is deeply technical and in-demand: Microsoft Purview, MFA hardening, Active Directory security assessments based on MITRE ATT&CK, Intune and Windows 11 management, SharePoint Online migrations, and Exchange and M365 migrations tied to mergers, acquisitions, and divestitures. Rather than chasing end customers directly, the company sells into other IT firms, giving it a B2B channel position with firms ranging from small consulting teams to global organizations with thousands of employees.

The business runs on project-based statements of work. Engagements typically last 6 to 8 weeks, with U.S. resources billing $150 to $170 per hour and overseas resources billing $145 to $150 per hour. In 2025, 30 clients generated business, and the TTM period shows 43% year-over-year growth, a strong signal that demand for Microsoft security remediation and migration work is accelerating as companies harden their environments and consolidate through M&A.

On $5.24M of revenue the firm throws off $741K in cash flow, a roughly 14% margin consistent with a labor-leveraged consulting model that blends domestic and offshore delivery. At a $2.975M ask (4.01x), the deal carries SBA pre-qualification, meaning a qualified buyer can get in for 10% down with the balance financed over 10 years, a structure that materially improves cash-on-cash returns if the earnings hold.

Why we like it

Earnings quality is solid for a services firm: $741K cash flow on $5.24M revenue with a blended domestic/offshore delivery model that keeps labor costs flexible. The 43% TTM growth suggests this is not a mature, declining book but a business catching real demand tailwinds in Microsoft security.
The moat is reputational and relationship-driven: this firm is the trusted specialist bench that Microsoft partners and integrators call when they lack the in-house talent for high-stakes security and migration projects. That referral position with other IT firms is sticky because switching means risking critical client-facing deliverables.
Market tailwinds are strong and structural. MFA hardening, Active Directory security assessments, Purview compliance, and M365 migrations tied to M&A are all areas where corporate spend is rising, not falling, driven by regulatory pressure, breach risk, and ongoing cloud consolidation.
The SBA pre-qualification de-risks the capital stack: 10% down with a 10-year note at favorable rates lets a qualified operator control a $2.975M business for roughly $300K of equity. That leverage turns a 14% margin business into an attractive cash-on-cash return if the earnings prove durable through diligence.

How to improve it

Convert project-based SOW work into retainer or managed-service relationships. Many of the same clients needing MFA hardening and AD assessments would pay a recurring monthly fee for ongoing security monitoring and remediation, which would smooth revenue and justify a higher exit multiple.
Build a formal sales and account management function. The firm appears to run on reputation and inbound referrals, so adding a dedicated business development hire to systematically mine the existing 30-client base and pursue new Microsoft partners could accelerate the already strong 43% growth.
Deepen the offshore delivery leverage. U.S. resources bill $150 to $170 and overseas $145 to $150 for similar work, so shifting a larger share of appropriate engagements to lower-cost talent widens margins without materially changing client pricing.
Diversify beyond pure Microsoft dependency by adding adjacent security services like Zero Trust architecture, identity governance, and compliance audits. This reduces single-vendor concentration risk while expanding wallet share with the same integrator clients.
Formalize and document the delivery methodology and consultant onboarding so the business is less dependent on any individual senior engineer. Productized playbooks for common engagements (AD assessments, M365 migrations) make the firm more scalable and more sellable.
Tighten client concentration data and pursue multi-year master services agreements with the largest integrator partners. Locking in preferred-vendor status with a handful of global integrators would stabilize the pipeline and reduce the re-win effort inherent in project work.

Diligence notes

Scrutinize client concentration carefully. With 30 clients generating 2025 revenue and only 24 active currently, understand how much of the $5.24M comes from the top 3 to 5 integrator partners, since losing one large partner could materially hit cash flow.
Interrogate the 43% TTM growth. Determine whether it is driven by a repeatable demand trend or by a few unusually large one-time migration projects tied to specific M&A events, because project-based revenue can be lumpy and hard to forecast.
Validate the offshore delivery model for continuity and quality. Confirm how overseas resources are contracted, whether they are employees or subcontractors, and whether that talent transfers cleanly to a new owner without key-person risk.
Assess owner dependence on relationships and technical credibility. Since the moat is the firm's reputation as the specialist bench, clarify how much of the client trust flows through the current owner personally and what transition support is offered.
Confirm the cash flow figure and normalize it. At a 14% margin, verify that the $741K SDE is clean of owner add-backs that will not transfer, and that contractor costs and utilization assumptions are sustainable at the current billing rates.

Source

Originally listed on BizBuySell. View original listing →