Apr 19 • General discussion
I’ve come across a rare gem in the IT sector — a fully remote business serving local governments with ERP and Microsoft 365 services.
• The market: GovTech / ERP
• The client: Municipalities across the U.S.
Here’s what made me stop and look deeper 🧵
Started in 2018, this business already makes over $4.6M in revenue, with $2.5M in profit.
Yeah. 55% margins. 💰
The owner is a former Oracle project manager.
Built it lean.
Trained his own team. 30 staff, fully remote, across U.S., Canada, India & Philippines.
What do they actually do?
They help cities install and run ERP systems.
Big ones.
Long projects. Avg project: 3–5 years.
Clients love them.
Many referrals.
One large client = 60% of revenue. Risky, but also sticky.
That client alone funds them through 2028.
Let’s break down the numbers:
• 2022: $1.7M Rev / $722K Profit
• 2023: $3.1M Rev / $1.58M Profit
• 2024: $4.65M Rev / $2.55M Profit
• Asking Price: $10M (3.9x earnings)
Pretty strong growth.
They didn’t raise money.
All organic.
So… what’s the catch?
Mostly concentration.
One big client.
No long-term support contracts yet.
But they’re the only ones who can actually support that ERP system.
Clients rely on them hard.
Also: owner wants to start a Montessori school (no joke), so he's selling.
He’s open to stay on or keep small equity.
What I like as an analyst:
✅ High margins
✅ SBA loan eligible
✅ Sticky customer base
✅ Growing ERP & GovTech market
✅ VP in place who can run ops
✅ Owner not technical bottleneck
What I'd improve:
• Lock in long-term support contracts
• Diversify client base
• Expand into adjacent services: MSP, RPA, AI tools
• Build recurring revenue
This could be a huge play for someone who understands gov sales or enterprise IT.
Massive upside if you bring B2B growth skills into a sleepy niche.
Want the IM? Comment “ERP” and I’ll DM the details + more deals like this weekly.
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I’ve come across a rare gem in the IT sector — a fully remote business serving local governments with ERP and Microsoft 365 services.
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