9 Year Old Swiss Banking Security B2B SaaS Firm - Priced at 5.5x Sales

Business Start Date: 2014
Business Valuation: $5,950,000 USD
Percentage Being Sold: 100%
Sales (TTM): $1,062,834 USD
Net Profit (SDE): $266,842 USD
Business Multiple (ARR or EBITDA): around 3.9x ARR
Users (TTM): 200K users

Summary
The listing is a 9-year-old cybersecurity company located in Lausanne, Switzerland, with a strong track record of recognition, loyalty, and an established customer base of over 150 clients across diverse industries in the Swiss market. The company's solution has achieved an exceptional level of maturity and boasts strong unique selling points. The business is well-positioned for growth and compelling opportunity to expand into larger markets.
The Opportunity
The business bootstrapped its operation since entering the Swiss market in 2015. Over the years, the company has served more than 200K users and has acquired 150+ customers across various sectors including the public sector, industry, digital banking, retail, and telecom.
The company's cutting-edge solution and unique offerings for multi-client Managed Service Providers (MSP) hold significant potential for international growth in digital banking security and Identity and Access Management (IAM). Compliant with the latest regulations and standards, the company's offering allows for a strong focus on the digital banking sector where it is at the forefront of the market because of its exceptional all-in-one solution, that delivers a secure and seamless onboarding and transaction security.
Moreover, the company presents a distinctive opportunity for expansion into larger markets, capitalizing on its demonstrated success in Switzerland. The company reinvested in innovation and product enhancement with reliance more on its reseller network performance than marketing.
The company believes that strengthening marketing and sales in broader markets will accelerate growth with a significant ARR increase. Its multi-tenant & REST API-based technology is purpose-built to integrate seamlessly into a cloud service infrastructure or software with minimal disruption and maximum flexibility for enhancement and adaptability. The company can leverage its strong value proposition and grow building a network of MSP & Software house channels to facilitate and accelerate new market penetration and ARR growth.
The company expects that in 2024, its 3 MSP partners in Switzerland will generate 300K/year and are expected to grow to 500K/year by 2025. An MSP can generate from 50K USD (small, < 5,000 users) to 200K (average, 30K users) to 500K+ USD (big, 100K+ users) yearly. Thus, with a marketing focus on MSP channels and banks, ARR can be increased significantly to reach 2M+ in 2026.
Considering the investments made over the past 10 years in their products and the rapid growth in ARR revenues, the company estimates a valuation of 6M USD, i.e. around 20x EBITDA (2022) or 10x ARR revenue.
General Highlights
The company offers a remote trust-enabled solution, that effectively addresses the challenges of IAM in a secure and practical manner, leveraging a no/low code platform. The solution can be easily deployed as a turn-key system on-premises or SaaS.
The company's solution targets businesses from diverse sectors, including industry, public sector, digital banking, retail, telecom, services, web, etc., that offer digital access and transaction services to users, both known and unknown.
Its strategic partnerships with three MSPs, now integrated with the company’s platform, have paved the way for ARR growth in Switzerland. Starting in 2023, these MSPs will initiate the solution rollout to their customers, thus accelerating ARR growth in the region.

For full details and to see business name, please sign up to FIH.com and go to https://fih.com/listing/754289