Investor / Acquisition: For a highly profitable electronics broker with established global customer base (Tier-1 OEM and CEM).

The company has been active in procuring electronic components for leading original equipment manufacturers (OEMs) and contract electronics manufacturers (CEMs) for over 25 years. In addition, it acts independently as a distributor of electronic components and provides complementary manufacturing services for its customers.

The company has direct contacts with distributors and manufacturers of electronics in Europe, Asia, and North America. This allows the company to open the door to global component pricing and availability for its customers.

The company is headquartered in Ontario, Canada - but business can be conducted from anywhere due to its international customers.

Service portfolio
The company offers the following service portfolio to its customers:
- Procurement of components: The company acts for leading original equipment manufacturers (OEMs) and contract electronics manufacturers (CEMs) in the procurement of electronic components.
- Distribution: the company acts independently as a distributor for electronic components.
- Components testing process: The company uses the latest equipment and techniques to test and verify the authenticity and functionality of the parts. To do this, the company works with leading testing agencies in the U.S. to combat counterfeiting of resold components.
- Manufacturing service: across sourcing and distribution, the company also offers custom-built products for customers.

Distributed component groups
- Integrated Circuits (ICs)
- Discrete Semiconductors (Active Components, Passive Components, Connectors, Electromechanical Components)

Customer base
The services are provided to a long-established customer base consisting of OEM and CEM customers (Tier-1). The customer base could be significantly expanded in recent years - 30-40 new Tier-1 automotive customers could be acquired in 2022 alone.

Reason for sale
The company's founder wants to retire from the business due to age and aims at a 100% sale of the shares (structured as a share deal). For a regulated handover, the founder and owner will remain available to the company after the handover (even up to 10 years).

Highlights of the company:

1) Broad service portfolio
With the broad portfolio of products and services offered, the company can provide optimal customer service.

2) Highest quality standards
a. The company stands for the highest quality standards towards its customers and is certified according to DIN ISO 9001:.
b. This requirement for its quality is underpinned by its membership in ERAI.

3) Tier-1 OEM and CEM customers
The company's long-term customers are OEM and CEM companies (Tier-1).

4) Strong automotive customer base.
In 2022, 30-40 new Tier-1 automotive customers were acquired. This allows a lot of potential for further revenue growth.

5) Diversified customer base
Due to the strongly diversified customer base, there are thus no dependencies on individual customers: Sales share of the largest customer at 16.9% (FY 22/23).

6) International network of suppliers
a. Large network of manufacturers and distributors opens the door to global pricing.
b. Preferential treatment in supply terms and pricing due to long-standing trade relationships and high reputation.

7) High profitability
The company is highly profitable with an EBITDA margin of:
a. approx. 29.9% FY 22/23
b. approx. 14.6% FY 21/22

8) Strong growth
The company has been able to achieve strong profit growth over the past two years:
a. FY 20/21 - FY 21/22: 415%.
b. FY 21/22 - FY 22/23: 75%.

9) Major growth potential
The company is strategically optimally positioned to continue to deliver sustainable long-term growth in the future.

Industry:
Electronics service

Employees:
Five employees (excluding GF)

Foundation:
Over 25 years ago

Region:
Ontario Canada (business model not region-specific)