The Opportunity
A managed IT platform founded 25 years ago, serving more than 270 regulated professional service firms. Law firms are the primary vertical, with proven capability in medical and financial services segments. The company acts as the single vendor for a client’s entire IT stack: private managed servers, a secure hosted desktop environment supporting over 1,200 application titles, and fully managed endpoints and connectivity.
The company holds annual SOC I & II Type 2 (SSAE 18) certification across its full infrastructure. For regulated firms this is a threshold requirement rather than a differentiator, and most small and midsize MSPs cannot economically maintain it. All staff are based in the US, background checked, and HIPAA certified. There is no offshore data access.
Revenue reached $25.8M in 2025 on an organic CAGR of 17.8% over five years, with roughly 91% of revenue recurring. Performance year to date in 2026 is tracking above a $30M annualized run rate.
Why Clients Do Not Leave
Client agreements are month to month by design. In more than 25 years of operation, the company has lost only three to five clients to a competitor.
The reason is structural rather than contractual. A client’s entire IT environment, including servers, desktops, network, and every practice management, billing, and document management application, runs on the platform. Preferred hosting relationships exist with every major legal software vendor. Leaving requires application relicensing, full data migration, and firmwide retraining. Client attrition has come almost entirely from firm mergers and closures, and merged firms typically stay on the platform.
Financial Summary
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | $13.4M | $16.5M | $19.5M | $22.5M | $25.8M |
| YoY Growth | n/a | +22.8% | +18.3% | +15.4% | +14.8% |
| Gross Profit | $8.0M | $9.6M | $11.5M | $12.9M | $15.0M |
| Gross Margin | 59.4% | 58.2% | 59.1% | 57.4% | 58.2% |
| Adj. EBITDA | $2.14M | $2.67M | $3.12M | $2.89M | $3.53M |
Accrual basis. 2024 and 2025 each include $652K in nonrecurring items treated as adjustments. Recast EBITDA including owner compensation normalization and confirmed transitional costs is estimated at $4.5M to $5.0M, subject to a formal Quality of Earnings review.
No single client accounts for more than 3.87% of ARR. The top five clients combined represent 12.0% of revenue and the top ten represent 19.2%, leaving more than 80% of the base spread across in excess of 260 additional firms, none of which contributes even 1.5% of the total.
The balance sheet is clean. Cash was $2.9M at the close of 2025, term debt of $884K consists entirely of data center storage hardware notes, and there is no acquisition or nonoperational debt.
Growth Levers
Controlled by the buyer, not dependent on growth:
- Data center consolidation. A legacy West Coast facility is being wound down in 2026, eliminating roughly $253K per year in redundant colocation cost. Completion is expected within 12 months of closing.
- A structured sales function. There is no outbound sales team, no paid acquisition, and effectively no marketing spend today. Every point of the 17.8% CAGR came from referral and word of mouth. A disciplined sales motion in dense legal markets is entirely additive.
Organic and strategic:
- Medical and financial vertical expansion. Identical compliance requirements, no equivalent platform level alternative, and significant ARR whitespace.
- Compliance premium upsell. AI governance, advanced MFA, threat intelligence, and compliance as a service modules across the existing base of 270+ clients, increasingly required by cyber insurers.
- Acquisition platform. The SOC certification stack, ISV relationships, and audited infrastructure are not replicable by smaller regional MSPs, which supports acquiring them at lower multiples.