Data Center & Co-location Biz with Real Estate for Sale Davidson County, TN

Middle TN

Asking Price: $599,000 for business; $2.125,000 for real estate

Cash Flow: $356,701

Gross Revenue: $634,506

Business Description

Fantastic TN Data Center and Co-Location Service Business for Sale. Rare Find!
Business: This Company operates as a colocation Tier 3 data center that leases equipment space to customers in a variety of rack sizes. The Owners have decades of experience in area disaster recovery and colocation and will stay on to train and transition the new owners. This kind of outsourcing of maintenance, management and operations in a top of class facility complex is ideal for business owners who can benefit from this fantastic infrastructure with little investment of staffing or capital required of their own.Industry:The colocation facilities industry has done very well over the last decade as the continual move toward online operations has caused an increase in demand for server space. In recent years, the industry has experienced a supply shortage, with colocation facilities filling faster than operators can create space. In response, most companies have really increased prices which have bolstered profit margins. This Company has maintained prices fairly level so raising prices is definitely an opportunity for an incoming owner. This general supply crunch is expected to continue in the next 5 to 10 years, especially here where so many businesses are relocating to the area and this industry is expected to continue to flourish.Key Drivers fueling growth: • As the percentage of services conducted online increases, companies will need more room for their servers and will call on industry operators to provide this space and power. • Growth in demand from data processing and hosting services. • An increase in the number of businesses will boost demand. Smaller companies that cannot afford their own infrastructure or IT professionals will turn to companies like Network Services Group, Inc. • As Companies invest in more computers and software, they are more likely to require greater server capacity and more services from the industry. • Colocation facilities help customers reduce their energy bills since they have more energy-efficient features and can negotiate discounted prices etc. BEST REASONS FOR ACQUIRING THIS COMPANY With this acquisition, you get an operation with considerable build out and upgrading expenses, updated equipment, staffing in place, training and transition, and all furniture, fixtures, equipment. The Owners keep the facility in excellent updated condition and there is room to expand and optimize the space. The office is nicely decorated and the exterior and parking is ample and secure.

Detailed Information

Location:
Davidson County, TN
Real Estate:
Owned
Not included in asking price
Building SF:
8,000
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The Company currently leases the facility from the owner for an annual rent of $144,000 ($12,000/month). However, the Owners plan to sell the real estate to the buyer of the Company. As such, this rent expense has been removed from the expenses on the financial recast for the purpose of arriving at a cash flow for the Buyer before his/her mortgage requirements. For details on the property please contact Karen Schorkopf.
Competition:
Other colocation centers in the area are its major competitors and there are only a handful. However, this facility is a tremendous value for the price and a great location in a rapidly growing market. The Company’s strength is also its industry experience, staff expertise, Level 3 Bandwidth, very updated equipment and beautiful move in condition of the office facility. They have no environmental issues.
Growth & Expansion:
The current facility could be occupied by an owner/operator looking for a disaster recovery facility and data center for their own business. This facility could also be used to add a mix of clients. It is not operating at full capacity and will soon have openings to add client space. Prices have also remained relatively level compared to the market so raising pricing would also benefit margins.
Financing:
limited to qualified buyers at seller’s discretion
Support & Training:
The owners will stay on for reasonable training and transition and there is staff who are open to staying on.
Reason for Selling:
Retirement

This listing was added 08/12/2019

The Listing Broker

(615)-519-5156