B2B Software Company for
Microsoft's Active Directory

Summary

This software company offers a suite of 10 products for managing various aspects of Microsoft’s Active Directory. Used by many organizations, both small and large from Education to Enterprise, with customers ranging from Boeing & Coca-Cola to Small District Schools, the company has carved out a successful business in a specialized niche.

Monetized by way of digital software sales, customers purchase a lifetime license which includes one year of free maintenance. Customers have the option to purchase up to 3 years of maintenance when they purchase a license. They can upgrade their service package post-purchase and renew expired maintenance packages for an additional cost. The owner has not explored the subscription-based pricing model that is growing in popularity with software products but believes this could be a viable opportunity to monetize the business more efficiently.

The owner, who founded the business in 2005 remains involved in the daily operations, spending approximately 30-35 hours per week on responsibilities that include product development, sales, and CS (customer support). The CS responsibilities could be easily outsourced cheaply, freeing up about 10 owner hours per week. The more skilled owner responsibilities could also be delegated to current employees or hired-out creating a passive business from an ownership perspective.

This company started as a passion project and grew into a successful business. The owner has taken the business as far as he can and is selling in order to take on a more active role in his family’s business.