Deal Corner

Company Description & Background
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“SAFA” is currently a wholly owned subsidiary of a large international technical services and research company. The firm has been in business since 2002 and has delivered 200+ engagements to clients helping organizations engineer alignment and action at defining moments. Annual revenues are $3-5M a year in contrast to the corporate parent ~$1 billon revenues/yr. The original founders of the firm are still with the organization and are recognized and published experts in using a proprietary formula to solve complex problems. The proprietary approach, grounded in systems science, has been used to get large teams unstuck, aligned, and on a clear path to meeting key objectives in a remarkably short period of time.

Transaction Descriptions & Process
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Recently, the parent company has changed corporate strategy while the principals of SAFA have adapted their business model to enable a virtual delivery model post-COVID. The principals of the firm are looking to build on its recent success in delivering virtual engagements and develop its platform as a remote workforce collaboration system to solve complex problems at scale.

The management team of SAFA is seeking an equity or strategic partner to accelerate its pivot to a deep collaboration technology enabled services provider & support its long-term growth strategy.
The parent is supportive and assumes any transaction will be a change of control (majority recapitalization, 100% acquisition, etc.).

The parent plans to launch the process in March 2021 and is open to working with advisors experienced in high end consulting services and remote workforce collaboration tools.

The Company is primarily focused on healthcare placements. They specialize in providing quality talent to healthcare providers and facilities across the eastern United States. The Company has a successful track record placing candidates in a broad range of healthcare positions.
The Company is well positioned to provide a stable and profitable platform for growth. It has a reputation of excellence in connecting the right candidate to the right position. Solid relationships with healthcare facilities and a database of talented healthcare professionals provides an industry related company access to a well-established business.
In 2019, the Company yielded $1,150,000 in revenue with an Adjusted EBITDA of $850,000. They are on tract to achieve $1,300,000 in revenue with $980,000 Adjusted EBITDA for 2020.
The outlook for the Company is very good. There is a need for healthcare staff, especially in the home healthcare field. Growth opportunities can be found in the home healthcare staffing sector because of rising healthcare costs and the Covid-19 pandemic making families leery of placing loved ones at residential facilities.

Omelas is a leading provider of Information Operations (IO) data and software. Their Wolf Totem platform offers the world’s largest library of digital propaganda, collecting data from the most popular social media platforms, messaging apps, and data feeds throughout the West, Middle East, former Soviet States, and East Asia.

The executive team is impressive and experienced at hunting terrorists and other bad actors. Omelas has won accolades as the Winner of the 2020 DoD Disinfo Pitch Competition, the 2019 Joint Artificial Intelligence Center (JAIC) Pitch Day Competition and has had three proprietary reports on disinformation campaigns picked up as global stories.

Their software suite and bespoke reports are in use by multiple federal customers in the US Department of Defense, State Department's Global Exchange Center, 12 Cabinet level and 5 heads of National Intelligence.

Omelas' management team seeks to partner with an acquirer who can scale operations. They are participating in next generation information warfare, at the convergence of information operations and threat intelligence, have developed a strong beachhead with several key agencies and need the breadth and depth to capture the market.

We have put together a landing page where you can learn much more about the company and see presentations on the technology at: www.cybercp.com/omelas. This site is password-protected to secure their data, so if interested please email me at rich@cybercp.com for the password.

StealthPath is emerging as a leader in "Zero Trust", a cybersecurity methodology that has been viewed for the past decade as the way of the future. StealthPath's suite of integrated solutions provides a complete Zero Trust methodology from the initial organizational education to protecting the crown jewels.

The executive team is very impressive, and StealthPath has won accolades from IBM, Dell, and others. They have 6 granted patents, 7 applications, and 1 global patent. Their software suite is beyond proof-of-concept, though R&D remains a current priority. They signed their first purchase order with US Army Network Enterprise Technology Command, and anticipate signing their next POs with the US Army Corps of Engineers, US Army Cyber Command, and several commercial clients within the next month.

StealthPath is garnering interest from the largest acquirers of cybersecurity technologies but needs to finance the next period of growth. The company is raising $1m on an immediate basis to fund the next three months and an additional $5,000,000 for 2021.

We have put together a landing page where you can learn much more about the company and see presentations on the technology at www.cybercp.com/stealthpath

If this opportunity aligns with your investment criteria, we would welcome a conversation.

I have a client that is looking for acquisition targets that provide managed IT services. Deal size they are looking for is under $10M in revenue. Targets can be located anywhere in the US.

We are selling a fully-equipped frozen pizza manufacturing facility that specializes in making gluten free, keto and plant based thin crust topped frozen pizzas. Capacity is 5 million pizza annually and can be doubled some investment in the plant and building. The facility is BRC, and Gluten Free certified and is located in Ontario, Canada. The facility includes an automated baking line and an automated topping line with an operating team. The company has sold to many of the large national and international U.S. and Canadian CPG companies, brand and private label pizza manufacturers and large retail grocery chains.

Wellness Center For Sale

Located in Affluent Suburb of Greater Birmingham, Alabama

This wellness center was established by a physician with a fulltime practice outside of the wellness center. He spends approximately 20 hours per month in the wellness center, but now desires an exit. The operation was established in 2014.

2018 Income: $495,251 2019 Income: $507,624
Expenses: $410,468 Expenses: $449,356
Net: $84,796 Net: $58,268

2020 Expecting YTD figures soon, but Feb, Mar and April were affected by Covid.
Approx Net Income May 20K with one FT employee and one PT Aesthetician
Approx Net Income June 15K with one FT employee and one PT Aesthetician

An experienced government contractor is looking to expand its business by acquiring a complementary government contractor in the aerospace, biotech, cybersecurity, program management or enterprise IT field. Acquisition candidate should have revenues of $30M or more with solid EBITDA. Seller participation for a limited transition period is a possibility.

PBB is pleased to present the opportunity to acquire a pioneer in the design and manufacturing of professional LED lighting solutions for the horticulture market. This growing company closed 2019 with $1.25MM in Adjusted EBITDA on $4.7MM in sales. 2020 bodes well with a current sales pipeline > $8.0MM.

Funding will be used to purchase a "fire sale" salvage barge/crane. There is a contract in-hand detailing where this unit will be used to recoup a sizable portion of the cost. Final price has not yet been negotiated, but expected to be in the $15MM range.