Asking Price Open Bid
Financial Information
Revenue: $1,069,793 Income: $400,000
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SAAS-Based Multiemployer Benefit Plan Administration Software Company

Attractive and User-Friendly Software Product with Solid Customer Base in its 40th Year

Founded in 1982, the California-based Company designs, develops, and supports software applications for the niche Taft Hartley multiemployer benefit plan administration industry.

The Company’s software platform is well regarded for its user-friendly interface, scalability, and customizable features with a large addressable market of third party administrators (“TPAs”) and multiemployer benefit plans, many currently running on manual processes or inferior software systems. Once implemented, the platform is mission-critical to its customers and the high switching cost creates a very sticky base of clients.

Owned by its two founders, both long-time industry luminaries, the Company employs a small staff of developers and engineers serving many large multiemployer plan and TPAs across North America.

The Company operates from 1,500 square feet of leased office space in Southern California but is not location dependent.

The Company was largely unaffected by COVID, thanks to the virtual nature of the business and the ongoing need for benefits administration software and support.

The Company’s existing owners are willing to stay on as employees or consultants to assist with the business transition.

Purchase Considerations

  • The software applications are cloud-based and fully integrated. The Company’s software solutions are customizable, scalable, and user-friendly, simplifying benefits administration for its customers. The software is available through a one-time license fee or a monthly hosting agreement, making it accessible to administrators of all sizes.
  • Most customers have been with the Company for 10 or more years.
  • Significant opportunities for continued growth exist as the market, although a niche, is large and many administrators still rely on outdated, homegrown or third-party administration software.
  • The Company also offers professional services at an hourly rate. These can include data conversions, configuration and implementation, and product enhancements.
  • 2022 will see the addition of new clients along with the expanding list of professional services requests. This will bring an increase in revenue to the company of over $1.5MM with SDE expected at over $650,000.
  • Ownership is willing to sign a standard, two-year non-compete agreement. Ownership does not own any other businesses in the industry and does not plan to re-enter the market.
  • This is an ideal opportunity for an owner with a solid business background, familiarity with common office technologies, and the ability to manage sales resources.

Certain principals of Raincatcher are registered representatives offering securities and investment banking services through Britehorn Securities, a registered broker-dealer (member FINRA/SIPC). Britehorn Securities and Raincatcher are not affiliated entities.


Locations
remote
Employees
8 Full Time   1 Part Time  
Years in Business
39
Asking Price
Open Bid
Terms

Negotiable

Ownership
1@ 50%  2@ 50% 
Facilities
Rents 1,500sf facility; during COVID most business was done virtually and much of it could continue to be done remotely
Reason For Sale
Owners are preparing for retirement