Business Name: Sign-in to view listing at https://fih.com/listing/0452987
Business Website: Sign-in to view listing at https://fih.com/listing/0452987
Business Start Date: 2018
Business Location: Romania
Business Valuation: Open to Offers - Min Bid $3.2M - Bidding Deadline 05/31/2026
Employee Number (Inc. Owners): ~50
Business Model: B2B Services
Industry: Quality Assurance Services
Percentage Being Sold: 100%
Sales (TTM): €2,190,859.00 (~$2.6M)
Net Profit (TTM SDE): €554,388.00 (~$660K)
Business Multiple (TTM Revenue): 1.27x
Business Multiple (TTM EBITDA): 5.02x
Paying Clients (TTM): 29+ active clients in 15+ countries
Tag Line: 7+ Y/O Software Quality Assurance Service Provider

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Executive Summary

The business is a technology-enabled software quality assurance platform delivering mission-critical testing and compliance services to enterprise and upper mid-market clients globally.

Founded in 2018 and headquartered in Romania, the company has evolved beyond traditional QA outsourcing into a hybrid model where proprietary technology is embedded across all service delivery. This integrated approach enhances efficiency, improves client outcomes, and creates durable competitive differentiation in regulated and high-complexity environments.

The business currently generates 100% of its revenue from recurring, Time & Materials-based engagements, supported by standardized Master Services Agreements (MSAs) with auto-renewal provisions. While not structured as SaaS today, the operating model exhibits subscription-like characteristics, including ongoing retainers, high client retention, and built-in annual price escalators.

The business serves 29+ active clients across 15+ countries, including global enterprises such as Samsung, Nestlé, ING, and GoDaddy. The company has established a strong position in higher-value QA segments, including security testing, regulatory compliance, and accessibility—areas that drive premium pricing, longer engagement cycles, and deeper client integration.

The platform is underpinned by a suite of internally developed tools spanning automation, compliance validation, reporting, and operational management. These tools are fully integrated into client workflows, increasing switching costs and providing a clear pathway toward future productization and SaaS monetization.

With strong margins (~25% EBITDA), a scalable delivery model, and embedded client relationships, The business represents a compelling opportunity to acquire a profitable, defensible, and strategically differentiated QA platform with embedded technology and clear expansion pathways.

Investment Highlights

• Profitable, seven-year operating history with consistent revenue growth

• Strong margins and attractive EU-based cost structure

• Blue-chip enterprise customer base with multi-year relationships

• Six proprietary, internally developed QA and operations tools included

• Turnkey delivery organization with established management and processes

• Clear optionality to productize internal tools into standalone SaaS offerings

Strategic Positioning & Evolution

Over the past 24 months, the business has undergone a meaningful transformation in both its operating model and market positioning.

The company has transitioned from a traditional QA services provider into a technology-enabled platform, with proprietary tools embedded across all delivery. These tools enhance automation, reporting, compliance validation, and operational efficiency, reducing reliance on purely human-capacity-driven growth.

Simultaneously, the business has expanded into higher-value, defensible segments, including security testing, regulatory compliance, and accessibility. These areas command premium pricing and result in deeper integration within client workflows.

As a result, the business is no longer directly comparable to commoditized QA providers. Instead, it operates as a hybrid platform model, where services act as the distribution layer for proprietary technology and long-term customer entrenchment.

Company Overview

Founded: 2018

Headquarters: Romania

Business Model: B2B software quality assurance services supported by proprietary tooling

Employees: Approximately 50 QA professionals across a blended workforce model.

Clients: 29+ active clients in 15+ countries

Transaction: Sale of 100% of the business

The business was founded on the principle that software should be tested independently from development teams in order to eliminate conflicts of interest and improve quality outcomes. Since inception, the company has grown organically without external funding, reinvesting profits into talent, certifications, and proprietary technology.

Services and Technology

Core Services

The business delivers independent QA services through:

• Staff augmentation (embedded QA engineers)

• Project-based testing engagements

• Ongoing QA retainers

Service offerings include manual testing, automated testing, performance testing, security testing, and compliance validation.

Proprietary Technology Stack

All proprietary tools are developed in-house and are bundled with service engagements:

• AI-assisted bug reporting and test case generation

• Self-healing browser-based test automation

• Productivity transparency and time-tracking platform

• Multi-standard compliance auditing (GDPR, WCAG, FDA)

• AI-enabled recruitment and CV screening tool

• Internal CRM and sales intelligence platform

These tools enhance delivery efficiency, transparency, and customer retention, and represent several years of accumulated R&D investment.

Market Overview

The business operates within the global software testing and QA services market, which is expanding rapidly due to increased software complexity, regulatory requirements, and continuous delivery practices. Demand is particularly strong in regulated sectors such as fintech, healthcare, and government-adjacent industries.

Key market trends include early-stage (shift-left) testing, AI-driven automation, and the growing acceptance of distributed QA teams.

Customers and Revenue Profile

Customer Base

Clients are typically enterprise or upper mid-market organizations requiring independent QA capacity, regulatory assurance, or long-term embedded testing teams.

Key verticals include fintech, healthcare, retail and e-commerce, media, and industrial systems.

Client Relationships

• 29+ active paying clients

• Operations across 15+ countries

• Multi-year average customer relationships

• Low historical churn and high repeat engagement

Customer acquisition is driven primarily by referrals, strong reputation on Clutch and Pangea.ai, and targeted outbound enterprise sales.

Financial Overview

Historical Performance

• 2023 Revenue: RON 7.64M | Net Profit: RON 1.83M (24.0%)

• 2024 Revenue: RON 9.14M | Net Profit: RON 1.49M (16.3%)

• 2025 Revenue: RON 10.49M | Net Profit: RON 2.35M (22.4%)

Revenue growth has been driven by new client wins and deeper penetration of existing accounts. Margin fluctuation in 2024 reflected deliberate investment in delivery capacity, with margins rebounding in 2025.

2024 consolidated EBITDA was approximately EUR 515,000, representing a margin of ~26%.

Cost Structure

• Labor (employees and contractors) represents approximately half of revenue

• Contractor costs are variable and scale with utilization

• Fixed costs include office rent, core salaries, and depreciation

The business exhibits strong operating leverage as utilization increases.

Contracted & Recurring Revenue Profile

The business benefits from a highly predictable and recurring revenue model driven by long-term client engagements and standardized contractual structures.

• 100% of revenue is derived from ongoing time & materials engagements, billed monthly

• All contracts are governed by MSA + SOW frameworks, ensuring consistency and scalability

• Automatic 12-month renewals with 90-day termination notice create continuous revenue visibility

• No fixed contract expirations—relationships persist unless actively terminated

• 29 active billing clients, with multi-year engagement histories

• Built-in annual price increases (CPI-linked or up to 8%), supporting organic revenue growth

While classified as services revenue, the structure results in recurring, subscription-like economics, with strong retention and expansion characteristics.

Operations and Team

Delivery Model

• Dedicated account management for enterprise clients

• Structured onboarding for new engineers

• Long-term team continuity per client

• Comprehensive documentation and knowledge transfer

Team

The business employs a blended workforce model with full-time staff and long-standing independent contractors, primarily based in Romania with additional international coverage.

Management

The management team is supported by senior QA leads overseeing key accounts and delivery teams.

Certifications and Competitive Positioning

• Approved vendor for a major multinational defense alliance agency

• Holds multiple internationally recognized quality and information security certifications.

• Avetta certified

• Recognized as a top-tier QA services provider on independent industry review platforms.

These credentials create meaningful barriers to entry and support premium positioning in regulated markets.

Growth Opportunities

• Productization of proprietary tools as standalone SaaS products

• Geographic expansion into Nordic and DACH regions

• Deeper penetration of healthcare, fintech, and defense sectors

• Pricing optimization reflecting certification and compliance value

• Increased investment in sales and marketing

Risks and Considerations

• Concentration of strategic relationships at founder level

• Client concentration typical of enterprise services businesses

• Ongoing GDPR-related legal matter with limited financial exposure

• Contractor-based workforce requires disciplined management

Transaction Overview

• Sale of 100% of the business

• Structure to be determined (share or asset transaction)

• Seller support and transition period expected

• Valuation to be discussed with qualified buyers

Assets Included in the Transaction

• All customer contracts and relationships

• All proprietary software, source code, and intellectual property

• Domains, brands, and marketing assets

• ISO certifications and NATO vendor registration

• Employee and contractor agreements

• Operating systems, documentation, and know-how

Reason for Sale

The founder is seeking a full or partial liquidity event and a strategic partner to support the next phase of growth, while ensuring operational continuity and long-term value creation for clients and employees.???????