This business created eight (8) custom web based software programs primarily for the public and private education sector and municipalities. Each of the eight products are subscription based thereby generating a recurring revenue stream for a prospective buyer. The company designs and develops the programs for specific needs within their target markets. Thereafter, once proof of concept is established and the program is providing the client with the desired solution, the business maintains the right to then and the right to market the solution to other school districts, states or municipalities.
The business currently has multiple school districts utilizing their proprietary copyright products and one state has already adoption for their online school bus inspection program. This alone will lead to many more districts selecting this transportation program to facilitate school bus inspections required by the state agencies. The majority of the programs developed for K 12 education are being utilized in the largest school district Alabama. In fact, that school district just awarded the business with a multi year development contract based on their complete satisfaction with previous projects.
These programs are well received because they are cost effective, user friendly and customer centric. They are complete for Alabama yet can easily be modified for utilization in other states making for a very scalable operation coupled with a high gross margin, recurring revenue product. The original developer would like to stay with the new owner. For software businesses the recognize multiple of SDE in 5.5 to 7.5 times SDE. This business is priced for 5 times SDE.
This is a great opportunity for a business in this important segment that already has sales representation on a regional or national level or an education company that desires diversification and recurring revenue. All of the development and marketing tools are in place for a quick start.