GLOBAL COMMUNICATIONS AND ELECTRONICS

Upstate New York … Mohawk Valley Region

Price: $6,800,000 plus inventory (est. $ 1,300,000) Cash Flow: $ 1,500,000

BUSINESS: Further growth opportunities abound with this established manufacturer of high tech products and precision parts essential in various growth industries including Energy, Security, Communications and Electronics. This growing company is a sole source provider to very large organizations and generally faces limited competition despite its products having broad applications. 90% repeat business annually from long-standing customers located around the world. Established many years ago, this company has been a preferred vendor to several agencies of the US government and Fortune 500 companies for more than 40 years. Operating cash flow, exceeding 28% of sales, can be further expanded by increased utilization of operating capacity. Experienced managers oversee day-to-day operations.

INVESTMENT HIGHLIGHTS:

􀀹 Strong Growth – the Company’s products are in increasing demand due in part to growing needs throughout the rapidly-expanding industries served;

􀀹 Blue Chip, Long-Standing Customers – the list of current, active customers is filled with several of the world’s largest organizations;

􀀹 90% Repeat Business – the Company is a sole source provider to several large customers and sells ~$5 M annually to long-standing customers;

􀀹 Impressive Financial Performance – annual revenues exceed $5 million; gross profit margins of 60%; operating cash flow trending to > $1.7 million….

with abundant opportunities for accelerated growth;

􀀹 Global Business with Large Market Size – the Company serves a growing worldwide market estimated at $300 B annually, with sales increasing in all regions.

FACILITIES AND EQUIPMENT: The Company operates from a modern 42,000 square foot facility that is leased at a modest rate and located on six acres of land with expansion potential. Machinery and equipment is modern and well-maintained. The Company operates with only one shift per day. Management believes there is adequate plant capacity to meet the production needs of significantly higher revenues.

PERSONNEL : Employees are trained, experienced and loyal with an average tenure with the Company of approximately 15 years. Managers oversee all day-to-day operations.

FINANCIALS: Operating results through August, 2008 are trending ahead of 2008 forecast that anticipated profits approaching $ 1,700, 000 on sales that were estimated at $ 6,000,000. This is growth from 2004 where sales were $ 3,000.000 and profits less than half a million. Gross Profit before SGA is about 60%. Inventory is $ 1,300,000, current and attractive.

PRICE AND TERMS: The tangible and intangible assets of the Company, except financial assets and accounts receivable, are offered for a total approximate investment of $6,800,000 comprised of $5,500,000 plus inventory at cost (estimated at $1,300,000). With the Company’s annual operating income trending to exceed $1.7 million, this investment should produce an attractive unleveraged return on total assets before considering opportunities to accelerate growth.

Listing : 8PTH0621