Welcome to Consultancy For Sale!

About Our Company

ConsultancyForSale.com is a premium IT consultancy sales referral service. We connect IT consultancy sellers with buyers. We understand the unique valuation of IT consulting business.

Many smaller IT consulting companies are struggling to deal with boilerplate RFE’s and denials due to specialty occupation, employer employee relationship and non-computer science graduates education evaluations for H-1B employees. It is no longer cost effective to run an IT consulting company with less than 35 employees due to the payroll taxes like employer contributions to social security (6.2%), Medicare(1.45%), state unemployment taxes(1%), business liability insurance($18,000 for 5 million), utility costs, office rent, line of credit interest rate (4-12%) due to delay in vendor payments, invoice factoring (1.5% per month),vendors going bankrupt without paying the consulting companies etc.

SERVICES WE PROVIDE

IT Consulting Company Valuation Formula

(1x-2x) * Sum ((Billing Rate – Pay Rate – payroll taxes) per consultant)- Management and Administrative expenses

1x = 1000 hours  |  2x = 2000 hours

This valuation is very different from the EBITDA model used for valuation of regular staffing companies. In simpler terms the consulting company owner will be able to sell his / her consulting company for a valuation between one to two times (1x-2x) of the net profit – owner compensation per year.

Asset Sale

In this type of sale, the owner sells the assets of the company only. An IT consulting company usually has no physical assets except IT consultants and intellectual property like software products and software technical specifications documents. In an asset sale the old owner retains the company and any liabilities like line of credit and business credit cards. The old company can function as usual and keep doing IT consulting or any other business activity. We had a recent sale where the IT owner kept his Corp-Corp contracts, Software products and sold his IT consultants assets.

Stock Sale

In this type of sale, the owner sells the stock of the company and its assets. The IT consultants, intellectual property like software products, software technical specifications and any future liabilities of the company are taken care of by the buyer.

Services We Provide

RETIREMENT OPTIONS FOR IT CONSULTING OWNERS

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Second Home

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Commercial Real Estate

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IRA Plans

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Social Security

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Disclaimer

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5 reasons for H-1B denial

  • Lack of end client letters with consultant job title and consultant roles and responsibilities clearly mentioned. Many end clients issue client letters without clearly mentioning the consultant job title, roles and responsibilities.  USCIS is denying these petitions even when the end client is highly reputable like the end client smartphone company that everybody uses.
  • For Software Developer, Applications job title soc code 15-1132 non-computer science graduates with more than six years of IT experience are being denied even though their combined work experience plus educational credential evaluation clearly states that their qualifications are equal to a US Bachelor’s Degree in Computer Science.
  • Lack of MSA and PO between implementation partner and end client is also causing H-1B denials. The implementation partner always states that they cannot reveal the MSA and PO between implementation partner and client due to confidentiality and non-disclosure reasons. However, some RFE’s are clearly asking for MSA and PO between every layer involved from end client to consulting company based on the Feb 22,2018 Contracts and Itineraries Requirements for H-1B Petitions Involving Third-Party Worksites memo. This is resulting in H-1B denials.
  • Usage of Computer Systems Analyst job soc code 15-1121 job title is causing a high rate of denial because USCIS states that a beneficiary does not need to have a degree in computer science or any other specialized field to work as a computer systems analyst.
  • Usage of generic job duties for Software Developer, Applications job title soc code 15-1132 also results in denials. USCIS wants detailed job roles and responsibilities from both end client and consulting company in end client letters and consulting company offer letters to warrant the use of a specialty occupation employee like software developer, applications.

H-1B Denial Rate

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