Majority of contracts 3-7 years
Customer base consists entirely of Government agencies, including municipal, state, Federal, and Department of Defense, with a focus on law enforcement and public sector needs.
Revenue split is 84% transcription and 16% translation. Seller working on growing the translation line, recently won first translation-only contract.
Revenue is well-diversified, with no single contract exceeding 36% of total revenue, ensuring low revenue concentration and reduced client dependency.
ASR utilized for 48% of the audio minutes received, including multi-speaker verbatim accounts. ASR lowers labor cost by 27.5%. Room to grow usage.
Strong margins on labor across all contracts. 47.2% Gross Profit percentage (including ASR labor savings).
Majority of contracts in California but present in several states.
Government bid win rate of 46% over past 3 years. Successful Federal and Dept. of Defense penetration.
Federal GSA MAS contract in place includes transcription and translation. Allows direct purchase of services by Federal and DoD buyers.
All contracts assignable with agency approval or novation agreement for Federal contracts.
A buyer with an established workflow platform can achieve significant synergy savings through horizontal integration of the seller’s workload.
Seller’s proprietary web based technology platform built and maintained in-house available for license or purchase. It offers cybersecurity, scalability, ASR and tools for managing the entire workflow cycle.
Lease ends July 2025 and can likely be closed, but required to maintain a small office space for record storage for largest contract.
Owner willing to stay on or exit post-close.
Labor:
Eight W2 Transcribers in CA
One W2 Proofreader in CA
Nineteen 1099 IC Transcribers
Four 1099 IC Proofreaders
Five 1099 IC Translators
One 1099 IC QA Clerk
Nine staff with controlled unclassified clearance "public trust - moderate risk" for work on select government contracts