Buy & Build: IT-Services Provider in Germany

Hi, We are self-funded searchers in Germany and currently finalize the LOI for this deal. We are still looking for our lead investor. The project in question is Nubes (IT Service Provider) with approximately 800k EBITDA and €12m revenue. In the NBO, we proposed a valuation of €5m (6.25x). Might seem a bit high at first for the margin but I promise it makes sense, once you learn about the company. The company is based in Munich and is particularly strong in the distribution of Microsoft licenses (especially cloud licenses on a subscription basis). There is also a small service business (about 5-6% of revenue), which is very profitable compared to the license trade and has significant potential for expansion. This is a very exciting case, partly because there is very high customer demand for services, but the four service employees are fully booked. By adding e.g., a pure Managed Service Provider, we could significantly increase EBITDA by meeting the existing customer demand.