Tupelo Data Room
IT & Software Services, Software & App Companies
Active

High-Margin Recurring Revenue Software Services Company for Sale

Delaware County, Pennsylvania, United States
listing image
Asking Price-
Revenue$2.50m
EBITDA$1.20m
Cash Flow-
Description
This opportunity offers a highly profitable, U.S.-based software development outsourcing company that delivers recurring revenue through long-term client relationships. The company operates entirely remotely and leverages a team of 44 offshore contractors based in Egypt, maintaining a staff retention rate exceeding 90%. The business specializes in software development, quality assurance, and UI/UX design services for small to mid-sized U.S. software vendors. With $2.5 million in annual revenue and approximately $1 million in net income, the company maintains a 39–48% margin, showcasing strong financial performance and operational discipline. The business has demonstrated consistency pre- and post-COVID, with no debt, no capital expenditures, and clean financial records. Clients typically remain with the company for 5–10+ years, with four key accounts contributing approximately 20% of revenue each. All new clients are acquired via referrals, highlighting significant untapped growth potential for a buyer with sales and marketing capabilities. The current owner works less than 5 hours per week, overseeing finance and participating in high-level project reviews. A trained team of project managers handles day-to-day operations, allowing for a seamless ownership transition. The owner seeks a full exit but is open to limited post-sale consulting. This is an attractive acquisition for strategic or financial buyers looking to scale a tech-enabled service business with strong cash flow, minimal overhead, and immediate profitability.
Number of EmployeesFull-Time: 1Contractors: 44
Year Established
2015
Reason Selling
The owner is seeking to retire after years of running the business. He desires a clean exit from operational responsibilities to spend more time with family and travel.
Market & Competition
Client base includes U.S. small to mid-sized software vendors. Primary markets served: Entire United States. No current contracts; client relationships built on service quality and consistency. No active marketing; new clients come via referrals or existing client expansion.
Growth Opportunities
Invest in sales and marketing infrastructure. Expand offerings to adjacent services (e.g., DevOps, analytics). Leverage existing clients for deeper wallet share. Explore vertical specialization in industries served.
Asking Price-