U.S. IT Managed Services Provider, 17-Year Onshore-Offshore Firm

$4.5M

Revenue

$700K

SDE

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Full Editorial Writeup

This is a 17-year-old IT managed services provider running an onshore-offshore delivery model across the United States, India, and Vietnam. The firm delivers software development, managed services, infrastructure support, cloud solutions, and AI engineering to more than 130 active clients globally. The core asset is a workforce of roughly 119 technical professionals: 101 offshore, 18 in the US, and a bench of 30-plus AI engineers, all operating out of a 24x7 command center.

The pitch to buyers is less about standalone cash flow and more about the platform value of a mature global delivery engine that would take years and millions of dollars to build organically. On $4.5M of projected 2026 revenue the business throws off about $700K of EBITDA, a roughly 15.5 percent margin that reflects the labor-arbitrage economics of a staff-heavy services shop. The seller frames approximately 10x salary savings offshore as the structural cost advantage.

The listing targets strategic acquirers: other MSPs, SaaS companies, enterprise buyers wanting a captive offshore center, and PE platforms. That tells you the value here is strategic capacity and AI-trained headcount, not a turnkey absentee cash machine. A financial buyer should underwrite it as a people business where client concentration, utilization, and key-employee retention drive the real return.

Why we like it

Earnings quality rests on a diversified base of 130-plus active clients and 17 years of operating history, which lowers single-customer blow-up risk relative to typical small services firms. Managed services and infrastructure support carry a recurring, contract-driven character that keeps revenue from resetting to zero each month. At $4.5M revenue and $700K EBITDA the margin is modest but believable for a labor-arbitrage model.
The moat is the delivery platform itself: 100-plus offshore professionals, English-fluent client-facing staff, a 24x7 command center, and established recruiting in India and Vietnam. Replicating this from scratch would take two to four years and significant capital, which is exactly why the listing is aimed at strategic buyers. That replacement cost is the real floor on value here.
Market tailwinds are genuine because IT managed services, cloud, and AI engineering are areas enterprises keep funding even in downturns to cut cost and modernize. The 30-plus AI engineer bench is a scarce, in-demand capability that most buyers cannot hire quickly. Offshore cost arbitrage becomes more attractive, not less, when corporate budgets tighten.
For the right operator the operator advantage is immediate scale: an MSP or SaaS company can plug this capacity into existing demand and lift utilization overnight. An enterprise buyer gets a ready-made captive offshore center at a fraction of greenfield cost. The AI headcount alone could justify the deal for a buyer short on that talent.

How to improve it

Audit client contracts in the first 90 days to separate true recurring managed-services revenue from one-off project work, then push clients onto multi-year managed-services agreements with auto-renewal. Converting project clients to retainers raises revenue predictability and the exit multiple directly. This is the single highest-leverage lever in a services roll-up.
Productize the AI engineering bench into packaged offerings such as fixed-scope AI implementation or ongoing model-ops retainers rather than selling it as raw staff hours. Packaged AI services command premium pricing and better margins than body-shop billing. The 30-plus engineers are undermonetized if they are only billed as heads.
Attack utilization and bench cost, because in a 119-person services firm a few points of utilization improvement flows straight to the $700K EBITDA line. Install weekly utilization dashboards and tie manager comp to billable ratios. Even a small margin lift here materially changes the valuation.
Build a formal sales and account-expansion motion to upsell the existing 130 clients into cloud, managed services, and AI work. Most firms this size grow reactively through referrals and leave land-and-expand revenue on the table. A dedicated account management layer can grow revenue without new logo acquisition.
Document and systematize the recruiting engine in India and Vietnam so hiring is not dependent on the founder or a handful of managers. The ability to add trained headcount on demand is the asset buyers pay for, so formalizing it protects and grows platform value. Treat recruiting as a repeatable product, not a side function.
Lock in key-person retention with equity or retention bonuses for the technical leads and AI engineers before close. In a people business, the enterprise value walks out the door if senior staff leave. Retention agreements convert a fragile headcount story into a durable one.

Diligence notes

The financials are stated as projected 2026 figures, not trailing actuals, which is a red flag that demands trailing three-year revenue and EBITDA by year. Confirm whether the $4.5M and $700K are audited historicals or management projections, because a projection-based sale materially changes the risk. Insist on monthly revenue and gross margin by client.
Measure client concentration across the 130-plus accounts, since services firms often have a top-few clients carrying most revenue. Request revenue by client and contract terms, cancellation rights, and notice periods. A diversified logo count means little if two accounts drive half the margin.
Scrutinize the recurring versus project revenue mix, because software development and AI engineering are often one-off engagements that must be re-won. Verify how much revenue sits under renewing managed-services and support contracts versus discretionary project work. This distinction drives the real quality of earnings.
Investigate the legal and tax structure of the US, India, and Vietnam entities, including transfer pricing, employment classification, and whether staff are employees or contractors. Cross-border labor arbitrage carries compliance and permanent-establishment risk that can erode the cost advantage. Get local counsel to confirm the offshore entities transfer cleanly.
Clarify why the owner is selling and what transition and training they will provide, since the listing discloses neither. In a founder-driven services shop, the founder often holds the key client relationships and recruiting know-how. Pin down an earnout or meaningful handover before committing.

Source

Originally listed on BizBuySell. View original listing →