Issue link: http://deals.uberflip.com/i/1433150
The Company specializes in systems engineering and software development. Core capabilities include web-based knowledge management, custom application development, product lifecycle management implementation, integration support, Cyber Security, and Mobile Application development. The key factors differentiating it from its competition are its Cleared (Secret or Top Secret eligibility) and highly- skilled engineers coupled with a low wrap rate, in large part due to the Company's virtual work model, as well as staffing model. It works with federal agencies (primarily the US Department of Defense) both as a prime contractor and as a subcontractor for other primes who perform for government agencies. Company Strengths • Superior Name and Reputation: Since its inception, Company has enjoyed a long-standing reputation for providing high- quality products and services to its customers. • DoD Clearance: The Company is a DoD-cleared facility (Secret and Top Secret), which allows it to bid for classified contracts. • High Caliber Workforce: The Company has highly experienced and talented personnel with Top Secret clearances. • Proprietary Product Technology and Patents: The Company's success is based on applying new solutions, technology, and concepts (some patented) to customers' evolving business needs on a constant or recurring basis. • Increasing Sales and EBITDA: The Company has increasing YOY Sales and EBITDA, and a strong balance sheet with no debt. • Strong Net Working Capital: The Company's current and quick ratios were 9.0 and 6.4, respectively. Business Expansion Opportunities • Backlogged Contracts: The Company's backlog of contracted work totaled $18.3 million, and its high- probability pipeline totaled $70.0 million to be achieved during pro forma period. • Favorable Industry Growth: US engineering and R&D services are forecast to grow at a CAGR of 4% between 2020 and 2024. • Expansion: The Company's business model is well-suited for expansion into the Navy, Hypersonics, and RDEC business lines. • Additional Markets: The Company's current strengths and assets can be easily leveraged to expand its business to other entities both nationally and internationally. Prasad 'Pat' Karcherla, Senior M&A Advisor Tel: (630) 708-2408 Fax: (972) 232-1132 Email: pkarcherla@generational.com | www.Generational.com I www.DealForce.com For more information, please sign the Confidentiality Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. IT/Engineering Defense Contractor Midwest/Great Lakes Region, US 2021 Est. Revenue $ 7.1MM | 2021 Est. EBITDA $ 1.2MM Highlighted Investment Considerations The Company's target customers are government agencies (69% of 2020 sales) or medium-to-large commercial entities (31%) that have systems engineering or product data management challenges to solve. During 2020, revenue was generated from systems engineering (65% of sales) and software development (35%). Founded in 2010, it is registered as a Limited Liability Company, is wholly-owned by its President, and employs 38 full-time and 4 part-time employees. Deal # 62761