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Buyouts in the SME ERP sector


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BY : Diego GutiérrezOctober Wed, 2018

We analyse the purchase of companies en el sector de los ERP para Pymes. Las empresas están tendiendo a automatizar ciertos procesos gracias a la irrupción del software ERP, hace unos años estos programas solían estar únicamente en grandes empresas debido a sus costes de implementación, últimamente, gracias a la proliferación de empresas en el mundo del ERP estos servicios están empezando a llegar a medianas e incluso pequeñas empresas, impulsando el sector.

Companies are tending to automate certain processes thanks to the irruption of ERP software, a few years ago these programmes used to be only in large companies due to their implementation costs, lately, thanks to the proliferation of companies in the ERP world these services are starting to reach medium and even small companies, boosting the sector.

i68 Group business model

The i68 Group is a company based in San Sebastian, Basque Country, dedicated to the management and maintenance of ERP software, this software is responsible for achieving optimisation in monetary terms, helps decision-making and simplifies the work in different departments.

The i68 Group works with industrial, commercial and service companies with a turnover of between 3 and 100 million euros, with most of its business located in Spain and Portugal, although the company also has clients in France, the Czech Republic, the United States, Mexico, Germany, Hong Kong, etc.

The company offers software designed for:

  • Optimising production for industrial companies with discrete manufacturing.
  • Automate administrative and accounting functions.
  • Comprehensive management of the HR department.
  • Supply chain, warehouse and customer relationship management.

Zucchetti acquires i68 Group

On 22 October the Italian company Zucchettidedicated to the production and distribution of software, acquires the i68 Group. The reason for this acquisition is the synergies that could be generated between the two companies, as both operate in a very similar sector and through the acquisition, the Italian company grows throughout the geographical area of the Iberian Peninsula and gets a wider range of first class customers.

 

Financial analysis of i68

Buyouts in the SME ERP sector

As can be seen, the company's indebtedness is very low, and it has also managed to significantly increase its net profit without needing to increase its income to the same extent, thanks to a reduction in the company's operating costs.

Thanks to the acquisition by Zuchetti, synergies can be generated that can further reduce the company's operating costs and, at the same time, thanks to the demographic expansion, can increase revenues, thus positively boosting the ROE of the parent company Zucchetti.

 

International industry figures

Within the ERP sector for SMEs, we find the companies that have invested the most in recent years at the international level and we highlight the following.

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Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
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We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

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