Target Company is an independent, leading and innovative implementation partner of a world-wide established e-commerce solution provider. The market of digital commerce is expected to grow with 13,5 % CAGR from 2020 through 2025. Target Company developed a strong, comprehensive and futureproof implementation practice of e-commerce solutions including marketplace features, integrations with payment platforms and customer data solutions resulting in a very satisfied customer set. Derived from its mission and vision Target Company is aiming to differentiate themselves through customer focus, trust, quality and loyalty and creating a sustainable ‘trusted advisory’ role within their customers organizations.

Key investment considerations

• Forecast for 2023-2025: Target Company forecasts a revenue growth on a stand-alone basis over the next three years to over € 1,7 Mio in 2025 with a strong EBITDA-result of approx. € 374.000
• Financial track record: The 2022 revenue was just over € 1,6 Mio, with a reported EBITDA-result of 23% of revenue equaling € 367.422
• With a recurring revenue component of 82%
• Ottawa is 100% independent and market leader (in this segment) in the Dutch market.
• In-depth digital commerce knowledge resulting in architectural board positions within some of their clients
• There is an opportunity for growth, however due to limited management capacity this has not been exploited yet. The founder expects to accelerate growth with the support of a new shareholder.
• Target Company has a comprehensive implementation methodology and is optimized for Google Cloud as hosting partner.

The organization
Target Company is established in 2007 and headquartered in the Netherlands. The organization currently employs 14 people of which the majority is contracted through an exclusive partnership with the development organization in India. This separate legal entity works on an exclusive basis for Ottawa and is able to rapidly scale if so desired. All implementations run on solid public cloud platforms (Azure or Google Cloud) and Ottawa has a strategic relationship on corporate and local level with the digital commerce provider (both are mentioned in the Gartner Magic Quadrant).

Clients
Ottawa has a solid base with merely A-level enterprise clients in the sectors Retail and Wholesale.

The market
The market is still growing field based on true organizational needs. Target is active in the digital commerce market and is forecasted by market analyst Gartner to achieve a CAGR of 13.5% in constant currency for the period 2020 through 2025. The strategic digital commerce partner of Target is currently very focused to gain more market share (comprehensive roadmap and partner program investments) and is supporting Ottawa in their business as much as they can.

Staff
Target Company is managed on a daily basis by the CEO (who is founder and 100% shareholder) focusing on customer success and maintaining the relationship with the people of his team in India. The CEO wishes to step down overtime depending on the new setup and in agreement with the new owner. A role as lead architect and/or delivery manager overseeing customer needs would be preferred 

Opportunities
Ottawa developed into one of the leading implementation partners in The Netherlands and has been able to develop its business model alongside its license provider, resulting in long-term relationships with clients and recurring business.