Copenhagen-based software company DocuBizz ApS offers cloud-based solutions that provide medium-sized companies with an automated workflow of purchase invoices and registrations.

DocuBizz' SaaS solution is tailored to the automotive industry, which includes car and truck dealers, but also metal recycling. The primary markets are Scandinavia, Germany and the US.

After a structured sales process, the company has been transferred to the Swedish listed group Vitec Software Group AB, which acquires well-run software companies in niche markets. The group includes more than 40 acquired companies, including companies that, like DocuBizz, focus on solutions for automating administrative processes.

Buys software company to keep

Klaus Termansen and Claus Bruun have been advisors to DocuBizz during the sales process.

"The software industry has been characterized by a strong focus on consolidation in recent years. This resulted in a positive response from a number of potential buyers both in Denmark and abroad when we went to market with DocuBizz's sales prospectus," explains Claus Bruun .

Business Brokers to the sales process suited the seller well, says Docubizz CEO Mads Toksværd:

"The broad search gave us confidence that we were negotiating with the right candidate. We sold to Vitec because it is a group that buys companies to develop and retain them, as opposed to a private equity fund chasing a short-term gain."

Software business valuation spot on

Mads Toksværd and his co-owner Roar Bregnholt chose Business Broker their business broker because of Business Brokers experience in selling software companies.

The director was particularly impressed by Claus Bruun and Klaus Termansen's approach to valuation.

"There is no doubt that Business Broker skilled advisors. Their valuation of our company could not have been more accurate in relation to the market," emphasizes Mads Toksværd.

DocuBizz has 11 permanent employees. With the acquisition of the company, Vitec gains special competencies in solutions for digitizing the flow of purchase invoices with an international perspective and activities in many countries.

Business broker negotiates directly with the buyer

Claus Bruun and Klaus Termansen conducted the negotiations directly with Vitec's representatives and M&A team.

"Not using foreign intermediaries and negotiating directly with the buyer results in the best solution for the company and the seller. Our experience from a range of international transactions shows that this allows us to better represent our client's interests to a potential future owner and establish direct contact between a potential buyer and seller," says Klaus Termansen from Business Broker.

Both buyer and seller benefit from Business Broker negotiations. This approach provides the necessary knowledge about the buyer's priorities, which forms a strong basis for an agreement that satisfies both parties in the business transaction.

Sparring with software specialists in the group

The founders of DocuBizz will retain their directorships in the company after the change of ownership. Mads Toksværd says about the new everyday life:

"I look forward to the peace of mind that comes with being part of a larger group with a strategy that matches ours and which has a large capital base. Professionally, I look forward to being able to spar across an organization with 1000 employees who have expertise in software solutions."

With the sale to Vitec Software Group, the founders of DocuBizz have obtained an attractive overall solution that includes a certain element of earnout.