This is a Management Buy-In case where Nextt Management is looking for a candidate with interest to buy and take over a profitable Danish IT company. Nextt Management is offering this service in close collaboration with a strategic M&A partner.
Company:
The company was founded in 2001 and have been specialized in the supply of DMS (Document Management Software) and integrated workflow processes for invoicing, safe electronic distribution and email communication, as well as handling critical and sensitive electronic documents and data regarding employees and customers. The company is a Microsoft Partner Independent Software Vendor and supports the functionalities of MS standard software.
Customers:
The customer base is a split between mainly public sector such as schools and educational institutions and private owned companies in Denmark with a potential to expand national and international.
Organization:
The company employ 15 people include current CEO and owner. They are organized in; SW-solution (5), Technical services and 1st line support (4), Sales, marketing and education (4), Product solutions (1) and CEO/owner.
Business and financial numbers:
The customer retention rate is more than 96% and annual contractual service fees amounts to approx. 50% of total turnover. Annual growth in License sales is more than 20-21% the last couple of years and is expected to continue in the years to come.
Transaction background
Current owner and CEO realize that time is mature for searching new ownership do to his age. Depending on the circumstances, the owner is willing to discuss arrangements of a transition for shorter or longer period.
Credentials on the right candidate:
- Must be able to invest an equity amount of Dkr. 10 million as part of the transaction. Together with bank loans etc. this amount should make the financial structure of the transaction realistic.
- Proven skills within leadership, sales and IT