Dutch digital signage software development company is looking for a partner
Sell-side
Media, advertising & communication
National
1 - 10
< 5 mln
P04323
B2B
- 10-20 employees
- based in the Netherlands
- skilled and enthusiastic team with an average age of 30
- committed management team, wishing to stay on board
Business activities
Revenue is generated with the sale of licences for two labels, offering access to two applications. The company generates revenue from the following activities:
- development of software and new features
- assistance during implementation and support
Investment considerations
- Growth opportunities: in-sourcing marketing and sales and expanding product range.
- Committed management: the managing director is willing to stay with the company.
- Recurring business: 80% have been customers for more than one year.
- Margin growth: cutting distributors and dealers from the supply chain will increase margins.
- Strong product: on-going development results in an non-copyable software codebase.
- Loyal and experienced team: average age of 30, all committed to the company.
- Strong market prospects: expanding market with positive macroeconomic developments.
- Synergy opportunities: strong software foundation enables easy addition of new applications.
- Continuous development: products are continuously updated and expanded, free of charge.
Transaction rationale
Over the past years, the company has developed its own digital signage software with a very strong codebase. The company has realised substantial growth and is ready for the next step.
The codebase has some built-in applications which have not yet been launched; new applications can be built on this base. Furthermore, the company makes use of distributors and dealers for its sales and marketing. Excluding these from the supply chain would increase revenue by 40% (the current mark-up for these parties). These opportunities have not been exploited so far, because the company does not have the funds to do so and currently does not focus on sales and marketing.
The company realised an EBITDA of approximately €436,000 in 2021. The company has four shareholders, one of which is still active as Managing Director. He aspires to stay with the company after the transaction and is open to participate in the business. The others wish to sell their shares.
