Opportunities
Full-Service Call Center
Sold
Excellent strategic plan resulting in lower overhead and long-term clients!
Specifications
This full-service call center is at the top of their game working primarily with large companies that have a nationwide footprint. Due to excellent strategic planning, this company boasts lower overhead than their competitors and thoughtful business management practices that have earned them many long-term clients. This dynamic company has been in operation since 1999 and has grown to over 160 employees. Working 24 hours per day, every day of the week, this company can answer customer calls for clients seamlessly with customized private label services. Representatives work directly within the client’s system, reducing liability and security concerns. Tasks can include, but are not limited to incident response, information intake, dispatching of professionals, call management, and general customer service.
The headquarters operates from a 10,000 square foot office that is outfitted to the specifications of call center work. All equipment including private servers, software, furniture and fixtures are included. The owner oversees the business and directs the greater vision of the company. The owner is willing to remain on staff to provide invaluable training for six months to help build industry relationships and to ensure a smooth transition. The executive and management teams are strong and team members plan to remain on staff to ensure continuity of operations. The team is prepared for continued expansion, with many sectors available as probable pathways to growth including increasing call management services, expanded customer service offerings, and branching into different industries.
Business Highlights
- Year Established: 1999
- Location: United States
- Service Area: National client base
- Services: Dispatching, call management, customer service, information intake
- Clients: Business-to-business, large clients, those with a nationwide footprint
- Headquarters: 10,000 sq. ft.: All office space with private office, cubicles, meeting and break rooms; Second location: 10,000 sq. ft.: Call center
- Reason for Selling: Exit strategy
- Employees: 160+: All management in place
- Seller Training Period: Owner will train for six months, top management will remain on board
- Growth Opportunities: Branch into other call management services, expand customer services
- Current Owner’s Responsibilities: Oversight & vision
Financial Highlights
- List Price: $10,088,000
- Gross Sales:
- 2019: $7,949,406 Annualized
- 2018: $7,885,361
- 2017: $7,821,919
- 2016: $4,761,355
- Cash Flow:
- 2019: $2,292,704
- 2018: $2,017,692
- 2017: $2,048,767
- 2016: $1,318,786
- Assets Included in Purchase*
- Equipment: $445,000: Server, software, all equipment and technology necessary to continue operations
- Intangible Assets: Excellent reputation with clients, very intelligent business development and overhead management, streamlined operations, long-term clients, agile and responsive
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Tax Return | Notes |
| 2019 | 2018 | 2017 | 2016 | 2015 | ||
| GROSS SALES | $3,974,703 | $7,885,361 | $7,812,919 | $4,731,355 | $3,516,137 | |
| Annualized | $7,949,406 | |||||
| Net Income Shown on Financial Statement | $760,616 | $1,317,647 | $659,270 | $365,702 | $200,567 | |
| ADDBACKS | ||||||
| Compensation to Owner | $298,929 | $485,760 | $1,180,219 | $788,969 | $720,501 | |
| 11% Tax on total W2 Salaries | $32,882 | $53,434 | $129,824 | $86,787 | $79,255 | |
| Depreciation | $0 | $42,757 | $22,621 | $28,917 | $25,847 | |
| Interest | $0 | $933 | $2,238 | $1,569 | $0 | |
| Meals & Entertainment | $15,835 | $14,594 | $13,652 | $10,286 | $17,708 | |
| Contributions/Donations | $2,750 | $0 | $0 | $0 | $0 | |
| Pension | $0 | $35,766 | $0 | $0 | $0 | No longer active |
| Cell Phone | $900 | $1,800 | $1,800 | $1,800 | $1,800 | $150/month |
| Travel | $34,440 | $65,001 | $39,143 | $34,756 | $39,903 | 50% Personal |
| TOTAL ADDBACKS | $385,736 | $700,045 | $1,389,497 | $953,084 | $885,014 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $1,146,352 | $2,017,692 | $2,048,767 | $1,318,786 | $1,085,581 | |
| Annualized | $1,146,352 | |||||
| Profit Margin | 28.84 % | 25.59 % | 26.22 % | 27.87 % | 30.87 % |
- Profit margin 2018: 26%
Clients
- Business-to-business
- Large clients
- Those with a nationwide footprint
- 35 clients at this time
- Number of clients for over a decade: 13
Services
- Custom-designed service packages
- Private labeling of services
- Information intake
- Dispatching of professionals
- Call management
- Customer service
- 24/7 services
- Bilingual communication
Employees
Employees: 160+
- All management in place
- Seasoned leaders manage day-to-day operations.
- Senior level staff
- Regional directors
- Middle management
- Trainers
- Auditors
- Performance coaches
- Headquarters:
- 130 Agents
- Second location:
- 25 Agents
Growth Opportunities
- Branch into other call management services
- Expand customer services
- Customer hotlines
- Expand into different industries
- Real estate scheduling
- Hotel incident reporting and repair dispatch
- Many, many opportunities to expand service offerings or customer base
Valuation Details
The Firm used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2018 cash flow was used with a prescribed multiple is 5. With this information, the computation is as follows:
$2,017,692 x 5 = $10,088,460
The fair market value found above positions the business list price at $10,088,000.
Funding Example
Purchase Price: $10,088,000
15% Buyer Down Payment: $1,513,200
85% Bank Loan: $8,574,800
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $112,685.
After business expenses and loan payments, and the 15% down payment of $1,513,200 would retain a profit of $665,470, which results in an 44% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $10,088,000 with the terms listed above, the coverage ratio is 1.5.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857