We were approached by a legacy computer VAR. Its founder had retired and the next generation didn’t have the same passion for the hardware business. He needed to have a way to increase revenue, visibility and expand into more profitable lines of business to make the company more attractive to buyers. After several months of discussions, we decided the answer was to create a services and training arm for his business, bringing in significantly larger margin and building a business more of interest to the owner.
We acquired an existing training business for its vendor relationships and added a services business around related products. The result was taking this newly acquired division from $600k in revenue (with a negative net) and two employees to $1.8M in 10 months with 13 employees, 7 subcontractors and a service backlog. This made the company more attractive and resulted in the sale of the legacy hardware business along with the training/services arm for several million dollars.