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Training Management System SaaS: 83% Renewals, Steady Revenue

Price: $920,000

Annual Revenue: $455,801

Net Cash Flow: $238,411

Industry: Technology

Location: Canada

This Canadian SME was established over three decades ago and provides a training management system and back-office solutions for training departments of various organizations (mainly military-related). They are members of the Canadian Defense and Security Industries (CADSI) group and the S6000T Steering Committee.

The Company’s solution has been successfully implemented in hundreds of programs in the US, Canada, the UK, Australia, Sweden, Brazil, and Singapore.

In 2022, the company generated sales of $0.46m, with seller discretionary earnings (SDE) over $238k. Over 83% of the customers renew their licenses yearly. 70% of the revenue is from SaaS and 30% is training-related income.

Team: The Company is run by its owner/president who has over 35 years of experience and employs 3 Full-time employees, one contractor, and several associates.

Services and Clients: The company offers an exclusive training management system that simplifies and speeds training needs analysis; The solution is made up of 8 modules that can be licensed/used separately or in combination. It is licensed annually as Software as a Service (SaaS) – hosted by the company on MS Azure or sold/installed on clients’ servers.

The company also provides coaching and support for teams with minimal experience or complex projects to minimize the learning curve and leverage the system’s full capabilities. It takes usually between one to three months on average for the solution to integrate into clients’ systems.

It primarily targets large organizations that are pursuing capital military projects with Training Needs Analysis requirements as well as military or government institutions.

Listing Details

Reason For Sale:

The owner is looking to retire.

Training & Support:

The owner will ensure a smooth company transition, continued support to clients and is available for support up to 12 months post-sale.

Summary

Competition:

The Company primarily faces competition from in-house tools and Excel spreadsheets. Its competitive advantages are multifaceted:

  1. Comprehensive Training Approach
  2. Maturity and Proven Track Record
  3. Multiple Standards Support
  4. High Configurability
  5. Taxonomy Customization
  6. Rule-Based Expert System
  7. Cost Analysis Tool
  8. Integrated Suite of Modules

Potential Growth:

Several military organizations are recognizing that the best way to drive training effectiveness and efficiency is by digitizing training analysis, design, development, delivery, and evaluation data; and seamlessly exchanging data among the training phases and external factors that impact training requirements. These include equipment, legislation, specifications and so forth that drive the need for training.

The company is well-positioned to support the future vision for training.

  1. The company’s solution provides a fully integrated solution that addresses many of the issues that are being raised.
  2. The company has a strong foothold within Canadian, US, and UK military markets
  3. The company’s solution supports S6000T.
  4. Upcoming releases will support the S6000T data model that facilitates data exchange among the training phases and external factors that impact training requirements.

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