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Custom Veterinary Software Solution, 98 Percent Client Retention Rate (selling 51 Percent)

Price: $2,346,000

Annual Revenue: $1,110,469

Net Cash Flow: $299,081

Industry: Technology

Location: Europe

The company offers a range of services bundled into its custom software solution that can be
integrated into the Veterinary Industry. Its solutions are centered around Veterinary Practice-, Clinic-,
and Hospital Information and Management Systems in a customizable format for on-premise and
cloud deployment that is easy to install and implement.

The annual revenue, generated via primarily recurring subscription revenue, reached $1M for 2022, with
the new business was acquired via referral only (client retention of 98%), and the SDE for 2022 was at

The owner is looking to find the right partner to help the business scale quickly, reach a significant number of clients, and tap into the >$1Bn Veterinary Software Market.

The business valuation is $4.6M for the entire company, and the owner is open to selling 51% of the
company equity with the following structure:
– $0.9m in cash at closing is not a pre-payment of the earnout.
– Earnout of 5% of revenue exceeding $1.1M annually for the first five years following closing and 3.5% exceeding $1.1M for the subsequent five years.

Team: The company is managed by the owner, who works 20 hours weekly. There is a small team of
3 full-time developers, with over 20 years of tenure in the company. Their function includes client
engagement and operations. The 3 additional external developers have the solution expertise.

Services and Clients: The company’s software solution is applicable to the veterinary industry and
encompasses practice-, clinic-, and hospital management and information systems that can be a
stand-alone service or a service interfaced and integrated with users’ existing practice management
software. It can be installed both locally and in the cloud.
Services include the software product, full IT-Service if required, and hotline support on an annual
license basis.

Transition Support: The current owner is fully committed to partnering with the right buyer to scale the company to new growth heights.

Reason for Selling: The owner is looking to find the right partner to help the business scale quickly, expand globally, and tap into a >$1Bn Veterinary Software Market.

Competitive Landscape: The company outweighs larger companies in terms of ROI and provider/patient satisfaction. Growing competition between significant players developing innovative products and integrating software in the industry results in substantial cost increases (pushed in higher pricing) for these companies.

Growth and Expansion Opportunities: The global veterinary software market size was valued at $1.3B in 2019 and is projected to reach $2B by 2027, growing at a compounded annual growth rate (CAGR) of 6.1% from 2020 to 2027.

The integrated software segment will significantly impact the market as integrating scheduling, charting, testing, billing, test reports, and patient reminders onto a single platform become critical.

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