Oracle EPM Consulting Firm, 20-Year Niche IT Practice

$3.0M

Revenue

$503K

SDE

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Full Editorial Writeup

This is a specialized Oracle Enterprise Performance Management (EPM) consulting firm with roughly 20 years of operating history. The business delivers Oracle EPM implementations, managed services, data integration, and legacy system support to enterprise clients across multiple industries, almost entirely through a remote, senior-first delivery model. The team's technical depth is deep enough that a Tier 2 firm restructured its subcontracting relationship to gain direct access to their people, which is strong third-party validation of scarcity value in the EPM and EDM niche.

What stands out is the client stickiness. Average client tenure runs 5 to 20 years and the company reports only a single client transition in its entire history, which is exceptional retention for a services firm. On roughly $3M in revenue the business throws off about $503k in cash flow, and management is projecting nearly $390k of managed services recurring revenue in 2026 with another $500k in the pipeline. The team is 10 people (8 full-time, 2 contractors), fully home-based, with no facility overhead.

The explicitly stated constraint is sales, not delivery. Management says the delivery platform is ready to absorb more work and that the only bottleneck is business development. There is also an underleveraged SAP capability described as a $1.5M+ specialty that few firms can claim. The seller is retiring and will support a transition, which is the classic setup for a buyer who can bolt on a real BD function to a proven, high-margin technical shop.

Why we like it

Earnings quality is strong for a services firm: about $503k of cash flow on $3M of revenue is a healthy roughly 17% margin, and a chunk of it comes from recurring managed services (nearly $390k projected in 2026). The senior-first remote model keeps overhead low with no real estate and a lean 10-person team, so margins are structural rather than propped up.
The moat here is genuine scarcity of skill in a narrow niche. Oracle EPM and EDM expertise is deep enough that a Tier 2 firm restructured its own contract just to get direct access to this team, which is rare, unpaid market validation. Enterprise clients do not casually rip out EPM systems, which is why one client transition in 20 years is even possible.
Client retention is elite. Average tenure of 5 to 20 years and a single client transition across the company's entire history is the kind of durability most acquirers only dream about. That predictability lowers the risk of a post-close revenue cliff and makes the cash flow far more financeable.
The upside is clearly identified and does not require heroics. The listing explicitly says the only constraint is sales, not delivery, meaning capacity exists to grow without rebuilding the team. Converting project clients to managed services retainers grows ARR without adding headcount, and the underleveraged SAP capability is a second growth lever already sitting in the business.

How to improve it

Hire a dedicated business development lead in the first 90 days. The seller admits the sole constraint is sales, so a single competent BD hire selling into the existing enterprise base and the Tier 2 channel could convert idle delivery capacity into revenue quickly. This is the highest-ROI move available and the one the current owner never made.
Systematically convert project clients to managed services retainers. Recurring revenue is projected at nearly $390k for 2026 with $500k in the pipeline, and the listing notes this can grow ARR without adding headcount. Build a standard managed services offer and pitch it to every project client at close, targeting a much higher recurring mix within 18 months.
Activate the underleveraged SAP capability. Management describes it as a $1.5M+ specialty few firms can claim, yet it is currently under-marketed. Package it as a distinct service line with its own case studies and outbound motion to open a second revenue engine alongside Oracle EPM.
De-risk the key-person and Tier 2 concentration before it becomes an issue. The subcontracting relationship with the Tier 2 firm is both a revenue source and a dependency, so formalize that relationship and diversify direct enterprise logos. Document delivery playbooks so scarce senior talent is not a single point of failure post-close.
Institutionalize the founder's technical reputation. The moat is partly personal to a retiring owner, so invest in retaining and titling senior staff, transferring client relationships during the transition window, and building the brand around the firm rather than the individual. Retention bonuses and equity for key deliverers protect the asset you are buying.
Tighten pricing and utilization tracking. A senior-first firm lives and dies on billable rates and bench time, so implement utilization dashboards and reprice legacy contracts to current market. Even a few points of rate improvement on a $3M base drops meaningfully to the bottom line given the low fixed cost structure.

Diligence notes

Reconcile the revenue and cash flow figures against tax returns and bank statements. The listing shows $3,008,245 revenue and $503,186 cash flow but confusingly lists both '20 years' of history and an 'Established: 2018' field, so pin down the true operating history and the actual EBITDA versus SDE adjustments. Understand exactly what add-backs bridge to the $500k number.
Stress test client concentration and the Tier 2 relationship. Get a client-by-client revenue breakdown covering the top five accounts, and understand what percentage flows through the single Tier 2 subcontracting channel. A dependency that generously validates scarcity can also become a concentration risk if that one partner walks.
Verify the recurring revenue claims. Managed services of nearly $390k in 2026 and $500k in pipeline are projections, not booked contracts, so review the actual signed agreements, renewal terms, and historical churn. Confirm whether these are true retainers or simply repeat project work being labeled recurring.
Assess key-person dependency across the 10-person team. With a senior-first delivery model and a retiring founder, identify which individuals hold the client relationships and the scarce Oracle EPM and EDM skills. Confirm employment status of the 8 full-timers and 2 contractors, non-competes, and whether the team stays through and beyond the transition.
Probe the asking price and deal structure since it is undisclosed. Given the reliance on scarce human capital and a retiring owner, push for meaningful seller financing or an earnout tied to client and staff retention. The valuation should reflect the sales constraint the seller openly admits, not just the historical cash flow.

Source

Originally listed on BizBuySell. View original listing →