Deal Alert: Profitable ERP Powerhouse Serving U.S. Governments

📍 Location: Fully Remote (U.S., Canada, India, Philippines)
💰 Asking Price: $10M
💸 Revenue: $4.65M (2024) | Profit: $2.55M | Margins: 55%

🌟 Why This Business is Great:

✔ Lean Team, Enterprise Clients, Gov Contracts
This isn’t a typical IT consultancy — the founder, an ex-Oracle project manager, built a 30-person team that runs multi-year ERP implementations for U.S. municipalities. It’s remote, capital-light, and runs like a machine.

✔ Massive Projects, Sticky Revenue
Average client engagement lasts 3–5 years. One client alone represents 60% of revenue and is committed through 2028. Yes, it’s a risk—but it’s also rare predictability. That’s the definition of sticky.

✔ Organic Growth. No Capital Raised.
From $1.7M in 2022 to $4.65M in 2024 — all organic. No outside funding. No fancy marketing team. Just quality service and word of mouth. That growth alone tells you there’s something special here.

🚧 Challenges & Considerations:

❌ Revenue Concentration
60% of revenue is from a single client. That client is strong and committed—but the business needs to diversify fast to unlock true enterprise value.

❌ No Long-Term Support Contracts Yet
Despite years-long relationships, there are no true recurring contracts for ongoing support. That’s both a risk and a huge opportunity.

❌ Founder-Led Culture
The owner is the brain behind the business and still involved. The good news? He’s not technical and has a VP running day-to-day. Plus, he’s open to staying on—or selling most and keeping small equity while starting a Montessori school (seriously).

🚀 Growth Opportunities:

🔹 Lock in Support Contracts
Start with the anchor client, then move downstream. Even a few long-term agreements would add stability and raise valuation instantly.

🔹 Expand Services to MSP / AI Tools
They’ve earned client trust in ERP — now upsell with managed services, RPA, or Microsoft Copilot-style integrations. The cross-sell is there.

🔹 Diversify Client Base
More municipalities. Adjacent sectors. Target clients using the same ERP system. Their team already has the expertise—now it’s about BD and scale.

🔹 Build Recurring Revenue
The skillset is high-trust, high-touch. Creating a support or training subscription model would bring consistency and raise LTV.

🔍 My Analysis:

This is an underpriced deal in a sleepy, high-margin niche. You’re buying a government-grade tech partner with 55% margins, enterprise clients, and a clear moat in a specialized ERP system few firms support well.

The founder built a world-class delivery engine. The next owner just needs to bolt on sales and a recurring revenue mindset.

Yes, there’s concentration risk—but it comes with loyalty, long-term work, and sticky revenues. If you’ve ever sold to the government or worked in enterprise tech, you’ll see the upside here immediately.

This is the kind of acquisition where smart ops and B2B growth skills could double profits in 24 months.

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