Business Name: Sign in to view listing at https://fih.com/listing/4256890
Business Website: Sign in to view listing at https://fih.com/listing/4256890
Business Start Date:  1997
Business Location: Velenje, Slovenia
Business Valuation: $1,287,500 USD
Business Model: B2B SaaS, WMS, ME
Industry: Manufacturing, Industrial Sector, Logistics
Percentage Being Sold: 80%
Sales (TTM): $1,255,157
Net Profit (SDE): $316,478
Business Multiple (EBITDA): 3.94x
Tagline: The business provides software solutions primarily focused on managing production processes within industries like plastics, metal, food, logistics, and wood, essentially offering tools for paperless work orders, extensive analytics, and an intuitive warehouse management system (WMS) to streamline operations within these sectors.

Executive Summary

Company Overview

The business, headquartered in Velenje, Slovenia, is a premier IT solutions provider specializing in network security, ERP system integration, warehouse and manufacturing management systems, and business analytics. With over 18 years of experience, the business has developed a strong reputation for innovation and excellence in digital transformation, serving clients across diverse industries, including manufacturing, logistics, finance, and retail. The company is poised for significant growth with ongoing expansion into international markets, particularly Croatia and Western Europe.

The business commitment to high-quality solutions and strategic partnerships has earned it a competitive edge. The company has positioned itself as a Gold Partner for [CONFIDENTIAL], collaborating with industry leaders such as Cisco, Sophos, and TrendMicro. Its ability to develop and customize proprietary ERP, MES, and analytics software enhances its ability to deliver unique, high-value services to enterprises of all sizes. Furthermore, its strong team of experienced professionals ensures that clients receive continuous support and innovative solutions tailored to their business needs.

Key Metrics

• Founded: 2005
• Headquarters: Velenje, Slovenia
• Revenue (2024): Exceeds EUR 1 million (as of October 2024)
• Projected Profit (2024): Above EUR 300,000
• Free Cash (2024): Approximately EUR 350,000
• Key Partnerships: Cisco, Sophos, TrendMicro, Datalab Pantheon (Gold Partner)
• ISO Certification: ISO27001 in progress, expected completion by the end of 2024
• Employee Count: Skilled team with expertise in IT, cybersecurity, and business analytics
• Client Portfolio: [CONFIDENTIAL]

Business Model & Revenue Streams

The business diversified business model ensures consistent revenue generation from multiple high-margin services. The company operates through the following revenue streams:

• Software Sales & Licensing – Generates revenue through the implementation and customization of ERP, MES, and WMS systems tailored to clients' needs.
• IT Security Solutions – Includes penetration testing, ethical hacking, vulnerability assessments, and integration of robust security systems to safeguard businesses.
• Cloud & Hosting Services – Provides remote IT infrastructure management, cloud solutions, and backup services for business continuity.
• Network Infrastructure Services – Focuses on optimizing enterprise networks, ensuring security, and implementing compliance measures.
• Managed IT Services – Offers long-term IT maintenance contracts and 24/7 support for enterprise clients, ensuring seamless operations.
• Data Analytics Solutions – Develops AI-powered analytics platforms that enable businesses to make data-driven decisions and improve efficiency.

By leveraging a mix of recurring revenue streams and project-based services, the business maintains a balanced and scalable revenue model with strong profitability potential.

Market Opportunity

The global IT solutions and cybersecurity market is experiencing exponential growth. With digital transformation becoming a necessity across industries, the business is well-positioned to capitalize on key trends:

• Rising Demand for ERP and MES Solutions – Businesses are increasingly adopting digital management systems to streamline operations and reduce operational costs, making ERP and MES solutions a critical investment.
• Cybersecurity as a Critical Investment – The surge in cyber threats has created a strong demand for advanced security measures, including penetration testing, system security solutions, and data protection services.
• Shift Toward Cloud Computing – Organizations are moving to cloud-based infrastructure, which presents a lucrative opportunity for the business’s hosting and managed IT solutions, offering scalability and security.
• Government Support for Digitalization – The European Union and local governments provide financial incentives for digital transformation, increasing market demand for the business’s services and ensuring sustainable growth.

Products And Services

Enterprise Solutions

• ERP Systems – Provides full-scale ERP integration, implementation, and customization, with a specialization in Datalab Pantheon solutions.
• Warehouse Management System (WMS) – Offers barcode and RFID-enabled inventory tracking for real-time warehouse visibility and efficiency.
• Manufacturing Execution System (MES) – Enhances manufacturing processes through automation and real-time monitoring.
• Business Analytics & Data Solutions – Delivers AI-powered analytics tools to optimize operations and support strategic decision-making.

Security & IT Infrastructure

• Cybersecurity Services – Includes vulnerability testing, breach detection, security monitoring, and compliance consulting.
• Cloud Services – Provides secure private cloud hosting, disaster recovery, and data backup solutions for businesses of all sizes.
• Network Solutions – Designs, implements, and ensures security compliance for enterprise networks.

Competitive Advantage

• Extensive Experience: Over 18 years of expertise in delivering IT solutions to a wide range of industries.
• Strategic Partnerships: Gold Partner with Datalab Pantheon; partnerships with global leaders like Cisco, Sophos, and TrendMicro.
• Proven Track Record: High-profile projects with major corporations and government entities, ensuring credibility and reliability.
• Innovative Solutions: Proprietary technologies in analytics, ERP customization, and cybersecurity.
• Skilled Workforce: A team of IT specialists, data analysts, and cybersecurity experts dedicated to continuous improvement and client satisfaction.

Financial Performance

• Revenue (2024): Over EUR 1 million as of October 2024, with consistent year-over-year growth.
• Profit (2024): Projected to exceed EUR 300,000, reflecting strong operational efficiency.
• Free Cash (2024): Healthy liquidity with approximately EUR 350,000 available.
• Growth Trends: Positive financial trajectory driven by international expansion and diversified revenue streams.
• Key Financial Ratios: Strong EBITDA margins and a healthy balance sheet reflecting operational resilience.

Growth And Expansion

• International Market Expansion: Focused growth in Croatia, with plans to penetrate additional European markets.
• ISO27001 Certification: Enhances trust and opens new business opportunities in regulated industries.
• Product Development: Continuous innovation in ERP, cybersecurity, and analytics platforms.
• Strategic Partnerships: Seeking investors and partners to support international growth and technological development.
• Talent Acquisition: Investing in talent to support scaling operations and maintaining service excellence.
• Technology Investments: Focus on AI, machine learning, and big data analytics for advanced business insights.

Investment Proposition

Investing in the business offers:

• Strong Financial Performance: Profitable with consistent growth and strong cash flow.
• Established Market Presence: Trusted by leading companies across multiple sectors.
• Scalable Business Model: Opportunities for expansion in fast-growing IT and cybersecurity markets.
• Strategic Growth Initiatives: Clear roadmap for international expansion, product innovation, and market leadership.
• Attractive ROI Potential: High growth potential with a solid foundation for long-term profitability.

Risk Factors and Mitigation

• Market Competition: High competition in IT, cybersecurity, and digitalization sectors.
• Regulatory Compliance: Potential risks from evolving data protection and IT compliance regulations.
• Technological Changes: Rapid shifts in technology requiring ongoing R&D investments.
• Economic Fluctuations: Vulnerability to global economic downturns.
• Cybersecurity Threats: Continuous need to mitigate risks from evolving cyber threats.

About the Agent

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.