Acquisition Opportunity: Midwest Telecommunications Software Provider
This Midwest Company develops and licenses software that automates processes and enables telecommunications providers to reduce costs, improve efficiencies, and increase customer satisfaction. Its main software package eliminates manual tasks associated with switch and network maintenance, provisioning, and NextGen transformation. The Company has created significant intellectual property and has been a Microsoft Certified Solutions Provider for more than 20 years. It has earned the trust and loyalty of elite-level clients, including the world’s largest telecommunications provider. With a dedicated, experienced workforce already on board, the Company is poised for continued growth.
INVESTMENT HIGHLIGHTS
Broad expertise – The Company’s core competency – knowledge of both TDM and NextGen technologies – gives it a significant edge.
Experienced staff – Employees have an average tenure of nearly 20 years.
History of innovation – The Company has created significant intellectual property in the field of telecommunications.
High-level, loyal clients – Customers include some of the world’s largest telecommunications providers, with whom the Company has long-standing relationships.
Recurring revenue – The Company has recently-signed contracts in place with its customers for annually recurring revenue through the end of 2026 and beyond.
GROWTH OPPORTUNITIES
Increasing demand – Telecommunications technicians who know TDM platforms are retiring, and carriers are struggling to find new qualified workers. The Company’s software platform provides relief by automating the provisioning for TDM technologies and accelerating the transformation to NextGen platforms.
Ability to scale – Once the software is configured for a specific customer, additional modules can be added without much (if any) additional cost, labor, or set-up time.
Addressable market – The Company estimates that there are approximately 20,000 switches in North America, and their software currently only services about 1,000 of them.
Geographic expansion – The Company’s software is currently designed to operate on North American dialing plans, but could be modified to address other dialing configurations for a more international reach.
| 12/31/2022
Actual |
12/31/2023 Actual | 12/31/2024 Actual | 12/31/2025 Projected | 12/31/2026 Projected | |
| Sales | $1,440,000 | $1,360,000 | $1,380,000 | $2,200,000 | $2,150,000 |
| SDE | $460,000 | $340,000 | $310,000 | $1,150,000 | $1,050,000 |
Contact: Rua Associates – 616.379.4045 – info@ruaassociates.com
NDA: RA181 NDA LINK