We are looking for cloud computing champions in the Emerging markets of Europe and beyond
Make the next step in your lifecycle and find a permanent home for your company.
— DHH is a family of 10 businesses across 7 countries
For over 7 years we have been successfully building a place where entrepreneurs exchange innovations and know-how while remaining autonomous and independent businesses.
Today, DHH Group provides a wide range of top-quality cloud products to around 120.000 clients across Southeast Europe and is listed on the Italian Stock Exchange.
— Our brands
— Why joining DHH?
Consolidate your leadership on the market
Do you see the opportunity on your local market but lack the means? DHH provides required tools and know-how to execute your vision.
Monetize past successes, while continuing to pursue your vision
Each company joining the DHH Group retains leadership, autonomy, branding and market positioning.
Supercharge your team in the company’s critical moments
Local businesses often struggle to make it to the next level. DHH ecosystem of entrepreneurs and specialists will share their expertise of successfully overcoming similar obstacles.
— We provide what is needed to take the business to the next level…
Permanent home for your company
Each company joining the DHH Group retains leadership, autonomy, branding and market positioning.
Our support in operating and growing the business
We support our companies with strategy, corporate governance, business plan, M&A, compliance, strategic sourcing and executive search.
Funds and know-how to grow
The Group companies have better access to capital resources. We created an environment where businesses share knowledge and build bottom-up synergies.
— …and our portfolio companies are sound proof
Tophost went from no CEO and development direction, outdated offer, and shrinking customer base to a revamped marketing and product offering strategy with a clear focus on low-cost simple but comprehensive solutions.
In a few years, Tophost emerged from EUR 1,2m sales with a declining trend to EUR 1,6m with double-digit growth, sound margins, and cash generation.
At Plus Hosting we allowed the co-founders to realize their personal goals with one leaving and another staying at the company. DHH supported the CEO in repositioning the company on the market, spinning-off the most innovative part of the business into a separate entity. We have also helped in execution and provided capital for consolidating acquisitions of the 3 competitors.
Today, Plus is the largest Croatian player with a turnover of EUR 2,3m and healthy margins.
We acquired Klaro when it was a EUR 1m business from the owners who transitioned to a new role at a group level in DHH. DHH assisted the CEO with the introduction of (1) planning and control practices and (2) product development process and provided support during acquisition of close Klaro’s competitor.
Today, the company is on the growth track – it has introduced several new products on the market and the revenues surpassed EUR 2m.
Artera did not have a clear focus and was involved in multiple business segments at a time facing EUR 200k loss and going bankrupt. DHH supported the founder in business restructuring and redesigning the organization introducing business planning and control practice. Artera transformed into a pure cloud computing company targeting Italian Swiss customers and becoming a growing and cash flow positive business.
— Our aim is not to flip your company in 3-5 years or break down what makes it unique
|
|
DHH |
PE/VC fund |
Overseas strategic buyer DHH |
Valuation |
Fair and well-considered valuation
|
Valuation on lower end in case of PE, high valuation of best players by VC
|
Fair valuation
|
Terms for the founders |
Full or partial cash-out
|
Full or partial cash-out for a majority in case of PE, minority stake and no cash to founders in VC
|
Usually, majority stake with full or partial cash-out
|
Industry know-how |
Industry expertise from 7 similar size companies
|
Most often little or no industry expertise
|
Extensive industry expertise, yet often from a perspective of large companies
|
Market experience |
Proven experience of growing companies on the local market
|
Good market knowledge in case of local funds
|
Usually no or little experience on the local market
|
Growth opportunities |
Capital and know-how to support long-term healthy growth, no exit in mind
|
Large pressure on growth (VC) or cash generation (PE) with an exit strategy in mind
|
High growth potential as a part of a corporate structure
|
Brand identity |
Keep brand, culture and company position on the market untouched
|
Usually keep brand, may however intervene in culture
|
The brand is often dissolved as business is fully integrated in the Group
|
|
|
Expansion |
Innovation |
Objective |
Entering in new geographies, or expanding product lines acquiring mature and cash generating companies with at least €1mn turnover
|
Seed investment ‐ 100/200k in small companies with growth potential
|
Industry focus |
IaaS, PaaS, SaaS providers from emerging markets with a particular focus on Southeastern Europe
|
New IaaS, PaaS, SaaS technologies with global potential
|
Stage of development |
Market leader, cash generating companies with low leverage
|
Team and product with proven traction
|
Acquisition strategy |
Initially cash purchase of 51%‐60% of equity with the option to buy the remaining stake via cash or equity
|
Initial minority stakes with contingent call options
|
— We prefer companies with motivated small teams which produce superior results in their local markets
Cloud Computing
IaaS
Hardware is Provided and managed by an outside service provider, the user manages operating system, apps, and middleware
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Networking
PaaS
Hardware and an application-software platform are provided and managed by a service provider, the user handles the actual application and data
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Networking
SaaS
Service provider manages all elements delivering an app which is accessed by user via browser or API
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Networking
Source: Redhat
Managed by client Delivered by company
— We care about our and your time and close cross-border deals in a reasonable time
Phase 1 (1 month)
Business case and terms’ negotiation
1. Informal conversation on business and financials to prepare a business case and suggest indicative valuation
2. Sharing an LOI with details on key transaction conditions and structure, request of detailed financials, organizing Q&A sessions
Phase 2 (2-3 months)
Due diligence
3. First phase of due diligence to verify key assumptions of the business case
4. Second phase of the due diligence to confirm legal, technology, HR, tax and related matters
Acquisition and intro to DHH
5. Agreeing on terms and signing of an SPA, shareholder and directorship agreement
6. Joining the Group and introduction to DHH