Adaptive Services B.V.

Presentation of the company

Adaptive Services B.V. is the holding company founded in 1999, active in the fields of ICT, Media and communication technology for supermarkets. The company is managed by Krijn Moens, has 17 employees and is based in Haarlem.

The main activities of the company are:

– Narrowcasting and digital signage

– Interactive consoles for communication in the supermarket

The company operates with 500 supermarkets.

After the passing away of the founder, the inheritor wants to sell the company to Mr. Moens, who has led the company in the past period.

Project Description

After the passing away of the founder, the inheritor went looking for a party to sell the company, active in ICT solutions for in-store marketing and communication for supermarkets, among others. Valuation based on market standard. Mr Moens buys the shares through a seperate entity, for which he wishes to borrow € 300,000 with a term of 36 months to finance the acquisition of the underlying activities. The remainder is financed by an equity contribution from the buyer. This project will be completed by the end of the year.

This project concerns a flexible loan; a loan to be repaid with a standard obligation for the first 9 months and the possibility of early repayment without costs for the rest of the term, even in the case of refinancing by other financial institutions..

The amount offered on the platform is limited to 150920€, which is in line with the regulatory limits.

Like all projects presented to individual lenders on October, it is co-financed with institutional investors, sophisticated investors, and the management of October, subscribers to the October Fund.

Analyst’s Opinion

With a turnover of 1 031 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Due to the sudden passing away of the previous owner Mr Rutte, the turnover has remained stable the previous year and this year.

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 2,17 and an excellent financial structure, with a forecast net debt / ebitda ratio of 0,77 and a net debt / shareholder equity of 52%.

The analysis of the project leads to a credit rating of B and a 5,3% annual interest rate.

*The multiple of FCCR at 2,11 means that the company has a safety margin of 111% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points

• Good historical performance based on diversified client base.
• Excellent repayment ability with a forecasted FCCR of 2,17.
• Delivering an innovative service to a sector with low sensitivity to economic downturn; supermarkets

Points of caution

• Small size of the company