Service businessNov 5
German Software Engineering and IT Services Firm
A German firm that supplies Java, .NET, cloud and SAP engineering teams to dozens of clients, the largest worth just 13% of revenue.
- Ask
- $9.9M
- Profit
- $3.2M
- Multiple
- 3.1x
- Ask
- $9.9M
- Revenue
- $12.1M
- Profit
- $3.2M
- Margin
- 26%
- Multiple
- 3.1x
- Age
- 2 yrs (Sep 2024)
How it rates
ValuationFair
Other online service businesses we've tracked mostly ask 2.8–4.5x profit, or 2.3–5.2x adjusted for its short history or recent decline and its size; this one asks 3.1x.
Durability
Founded in September 2024, so about two years of results despite $12.1M in revenue.
Hands-off
A team of 21 to 100 delivers the work; the owner's own hours aren't stated.
Why it's interesting
- Clients are spread out: 51 to 100 active accounts, the biggest at 13% of revenue, with an average contract worth about $102K.
- Revenue grew 491% over the past year, and the latest month alone brought $1.4M of revenue and $535.8K of profit, well above the 12-month monthly average.
- It sells both directly and through service partners, across Java, C#/.NET, AWS, Azure, data and AI, embedded and SAP work, which suggests more than one route to new clients.
What to watch
- The profit figure comes from preliminary monthly management accounts that the listing says are not normalized or fully tax-accrued, so the final number could come in lower.
- Client retention is 70%, so roughly three in ten clients don't stay, and in staff placement and project work revenue lasts only as long as clients keep renewing.
- The seller is leaving for health and family reasons, and the listing doesn't say who wins and holds client accounts today.
Ask the seller
- What do normalized accounts, with full tax accruals, show for profit over the last 12 months?
- How much revenue is engineers billed by the hour to clients versus fixed-scope projects, and how much arrives through service partners?
- Which client relationships does the seller hold personally, and who would lead sales and delivery after the handover?
Growth plays
- Turn the longest staff-placement engagements into managed-service contracts with fixed monthly fees, aimed at lifting the 70% retention figure.
- Use the existing service-partner channel to win clients in Austria and Switzerland, where German-speaking teams with SAP and .NET skills fit directly.
Nov 5Added to Acumen Wire