Principal Acquisition Group Evaluating Highly Qualified Industrial Equipment & Technology Mini-Cap Manufacturing & Equipment Firms

 

TechStar Holdings (“TStar”) is an extremely well funded Acquirer whose management has lengthy Wall Street experience, extensive background in Industrial Goods, Maritime & Aviation, Health Care, Medical Devices,  Power Generation, Utilites/Turbines and Related Products Manufacturing. TStar is considering highly qualified, established, profitable, stable, seasoned and well respected Companies in the above sectors of focus for its highly selective Acquisition consolidation program. Additionally, related products, distribution, engineering services, and spare and replacement parts entities will also be considered. Corporate divestitures, undervalued public entities and private equity controlled enterprises (for which IPO “monetization” has ceased to be an option), are the primary areas of focus. Privately held companies that cannot meet the specifications detailed hereunder will not be considered.

 

Initial Interest is focused on those Companies that could be considered as qualified candidates as prospective licensees for Proprietary (Patented) products, technologies and exclusive rights Agreements, as well as (by virtue of license) high barrier to entry permits and certifications for requisite engineering services. No Firms that concentrate in residential or commercial construction or have high customer concentration would be of interest. Substantial build to print and/or job shops are a plus.

 

ACQUISITION SPECIFICS:

  • Geographic areas currently in focus: United States with a geographic preference for the East Coast.
  • Companies with Revenue range from $50 million (minimum) to 200+million annually
  • A minimum of Three years consecutive EBITDA of $8 million minimum is required
  • A minimum of Five consecutive years of profitability with cash flow positive operations
  • Minimal debt and must be accretive
  • Purchase Price to NAV ratio no greater than 2:1
  • Working Capital Adequacy for growing enterprise; customary test is minimum 2:1
  • A strong management team with an Incentive to grow the value of the company

 

This Acquirer seeks highly qualified companies with potential to grow rapidly through a combination of Acquisitions, obtaining of exclusive licenses and internal growth. Numerous liquidity events are contemplated. This is a unique combination yielding strategic, technical and financial Acquisition consolidation opportunities.

 

TStar prefers to acquire firms where industry acknowledged, highly qualified, existing management desire to remain to further contribute and share in the rewards of goal fulfillment and continued future growth. This is an ideal opportunity for principal control stockholder(s) to construct a planned exit, maximize liquidity, and develop a solid financial divestiture plan with remaining management able to share in the subsequent growth of the Firm.

 

Minimum Requirements For Initial Consideration:

  • Three (3) years GAAP/SEC/PCAOB compliant Certified Financial Statements (and stub period Reviews) to include Accountant’s Report and Full Notes.
  • Three (3) years Forecasted Consolidated Statements of Operations (by quarter).
  • Three (3) years Federal and State Tax Returns and “Deal Book” (if available)
  • Abovereferenced Three Years GAAP/ PCAOB compliant/SEC Audits required prior to execution of Letters of Intent.