Ahead of schedule – software as the foundation of a successful exit

Case

Plain Vanilla and Euphoria Mobility, 2021–2025

The market stood still. Plain Vanilla did not.

When Plain Vanilla entered talks with Euphoria Mobility in 2021, the market was in rough shape. COVID had brought mobility to an abrupt halt. Taxi and contract transport had ground to a standstill. Many investors parked their ambitions.

Plain Vanilla did not. Laurens den Herder, Investment Director, explains: “For Euphoria, COVID was a temporary bump in the road. That was our assessment. We saw quite quickly that once the world reopened, Euphoria could accelerate its growth.”

Euphoria Mobility was the market leader in the Netherlands within a tightly regulated niche. The company automates the full mobility process: from hardware in the vehicle to cloud software for planning, invoicing, and compliance. In a market where legislation changes continuously, robust software is not a supporting tool. It is the foundation.

The investment thesis was clear: professionalize, internationalize, and scale. One of the central questions: How solid is the technology under the hood?

Looking under the hood

For Plain Vanilla, software due diligence was not a formality. YieldDD was engaged to conduct a buy-side review covering architecture, scalability, technical debt, team structure, and security.

The buy-side review made visible what was in place, what could be improved, and which steps were realistic within the growth plans.

Laurens den Herder - Plain Vanilla

“The financials often don’t tell the whole story. You simply cannot buy a software company without looking properly under the hood. IT has long been a somewhat overlooked part of the due diligence process, but that is changing fast. More and more investors are scrutinising it closely, and rightly so.”

For Vincent Bekker, CTO of Euphoria, this was his first encounter with software due diligence. The timing was not ideal.

“The software due diligence was announced fairly late in the process. At first, that feels a bit like you’re already one-nil down. You think: "Where is this coming from and why now?" But that feeling changed along the way. In the end, it turned out to be genuinely valuable to have a party look at things with fresh eyes and confirm that the foundation of your software is sound.”

No deal-breakers. Concrete improvement points, yes – ranked by impact and required effort. A roadmap for further professionalization. The report gave Plain Vanilla the insight needed to invest with confidence and Euphoria the confirmation that their platform could support the intended growth. YieldDD's findings provided the technological grounding for the investment decision.

From stability to scale

The first phase after closing was about bringing stability. Supply chains were disrupted by COVID. Continuity of hardware delivery was critical. Plain Vanilla helped sharpen forecasting processes, strengthen governance, and build out the finance function.

Within eighteen months, the organization stood on firmer ground. The management structure was adjusted. The founder took a step back. The foundation was laid for what needed to come next.

The focus shifted to growth. Euphoria expanded into the Middle East and Scandinavia. International expansion in this market demands more than commercial ambition. Local legislation, certification requirements, and compliance must be deeply embedded in the software. Vincent emphasizes:

“If the quality isn’t high enough, you simply don’t get into that market.”

The improvement points were picked up and prioritized. The technological foundation needed to realize the growth ambitions was strengthened step by step.

Taking control of the exit

Within three and a half years, Euphoria had achieved everything Plain Vanilla set out to accomplish. Once the targets had been realized, a natural exit moment emerged. Software due diligence played a key role once again, this time on the sell-side. Plain Vanilla turned to YieldDD once more. Three years in, YieldDD knew the company, the technology, and the team inside out. Laurens explains:

“With vendor due diligence, you lay a complete package in front of prospective buyers. Everyone works from the same information and needs to do far less research themselves. That helps accelerate the process. Parties can reach a view much faster.”

The software due diligence formed an integrated sales package alongside financial and legal due diligence. Findings were put in context: points already on the roadmap were presented as work in progress, and the strong elements of the software were confirmation of its technological quality. YieldDD’s prior knowledge of the company, the codebase, and the team meant the process could move fast and without loss of context. We also supported the technical section of the information memorandum (IM) and conducted tech expert sessions with prospective buyers.

Vincent Bekker - Euphoria Mobility

“A vendor due diligence shows what is under the hood. It is more neutral than a sales document and goes much deeper into the technology. It helps when someone genuinely challenges what's there. Then you know that what you’re selling is not just a compelling story, but technically solid too.”

A new phase

Three and a half years in, the targets had been met and Euphoria had achieved everything Plain Vanilla set out to accomplish. Ahead of schedule. Sofindev acquired Euphoria Mobility as the new investor to unlock the next phase of growth.

Looking back, this investment cycle rested on a solidly founded software pillar. At entry: insight into what was there and what needed to improve. During the growth period: a solid technological foundation to build on. At exit: technical evidence that strengthened the story. Laurens underlines:

“Looking back at our investment in Euphoria, we are very proud of what the company has achieved. Euphoria exceeded all targets we set at entry, ahead of time."

Internationalization will be developed further. The portfolio will be broadened, and new legislation in the Netherlands requires adaptations to systems and processes. The technological foundation strengthened over the past years provides the starting point.

The buy-side provided insight and certainty. The sell-side created acceleration and a level playing field for buyers.

The cycle is complete. But the growth continues.