Small Business Development Group (OTC: SBDG) Expanding Acquisition Efforts and Launching Advisory Services

Rhea-AI Summary

Small Business Development Group (OTC:SBDG) is expanding its acquisition strategy, targeting privately owned businesses, particularly from the retiring Baby Boomer generation. CEO Roy Y. Salisbury emphasized a three-step growth plan: acquire, grow, and exit, with plans for a spinout of portfolio companies leading to shareholder dividends in equities. The firm aims to capitalize on a wealth transfer trend, identifying acquisition candidates with enterprise values between $2 million and $50 million, generating consistent cash flows.

Positive

• Expansion of acquisition strategy targeting Baby Boomer-owned companies.
• Potential for significant shareholder value creation through dividend spinouts of portfolio companies.
• Focus on a market segment (SMBs) that is underserved by larger equity firms.

Negative

• Acquisitions may face integration challenges.
• Dependence on successful management of portfolio companies to achieve promised growth.

CARY, NC, Oct. 18, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Small Business Development Group, Inc. (OTC:SBDG) (www.SBDGStock.com) announced today that the Company is expanding its acquisition efforts and launching new advisory services.  SBDG has developed a disruptive business model based on an aggressive mergers and acquisitions model targeting privately owned businesses.

“Acquire. Grow. Exit. That is our plan.  We acquire the target, an established company with strong management.  We work with the management team to grow its asset and revenue base, while our executives groom the portfolio company to become publicly traded.  When the time is right, we spinout the portfolio company into its own independent publicly traded company,” said Roy Y. Salisbury, Small Business Development Group CEO and Chairman.  “When the spinout occurs, SBDG will declare a dividend in kind to its shareholders in the form of equities in the new public company.”

SBDG is built around its two signature strategies: Soft Leveraged Buyouts and Engineering of a Public Company.  Mr. Salisbury explains that the aggressive acquisition strategy is focused on targeting the aging Baby Boomer generation, who own more than 2.4 million private companies, many of which are too small for larger private equity groups and institutional investors.  “Baby Boomers are retiring in record numbers, fueling a paradigm shift on Main Street.  We also are seeing owners pass away, without a transition or succession plan leaving their heirs and employees in disarray.  With our strategies, we will take on both the larger transactions, as well as the smaller ones.”

“Over 90% of Baby Boomer businesses have annual revenues less than $5M.  Too big for an individual entrepreneur to acquire, and too small for a PE firm, we can acquire these companies, group them by industry, bolt them on to others, and exit all of them together,” said Mr. Salisbury.

For companies that might not want to be part of our holding company, or are large enough to be a publicly traded company on their own, SBDG will offer specialized M&A and IPO Advisory services to select clients.  “As we simultaneously expand Management’s efforts and expand our portfolio M&A Advisory businesses, our deal flow processing becomes much more efficient.  Our efforts find us both potential acquisitions, as well as drive revenue through offering advisory services,” said Brian Jue, Chief Operating Officer and Director. 

“We know there is a massive opportunity in front of us, and in 2022 we will be fully rolling out our Private to Public services, which will work for both buyers and sellers looking to increase their value and access expansion capital.  There will be trillions of dollars in wealth transfer in these next years, and we are positioning SBDG to take advantage of it for the benefit of all SBDG stakeholders.”

About SBDG:

Small Business Development Group, Inc. (OTC: SBDG) is a holding company publicly traded on OTC Markets. SBDG has an active mandate to identify and acquire operating companies with a preference for those in the small to medium sized enterprise arena (SMBs and SMEs) based in North America, specifically those demonstrating modest but predictable growth and profitability over time. Ideal candidates for acquisition have an enterprise value between $2 million and $50 million with positive cash flows between $500 thousand and $5 million. SBDG's intent for all acquisitions is to affirm or establish sound business fundamentals and to drive revenue and profitability growth. The goal of SBDG is to develop and align portfolio companies into high performance industry verticals and deliver additional value for its stakeholders.

For more information, go to www.SBDGStock.com

Investor Relations:

Paul Knopick
pknopick@eandecommunications.com

www.eandecommunications.com

940.262.3584

Safe Harbor

This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business.

FAQ

What acquisition strategy is Small Business Development Group (SBDG) pursuing?

SBDG is focusing on acquiring privately owned companies, particularly those owned by retiring Baby Boomers.

What is the projected outcome of SBDG's acquisition strategy?

The strategy aims to grow acquired companies, eventually spinning them out as independent publicly traded entities, providing dividends to shareholders.

What is the target market for SBDG's acquisitions?

SBDG targets small to medium-sized enterprises (SMEs) with enterprise values between $2 million and $50 million.

How does SBDG plan to add value to acquired companies?

SBDG plans to enhance the asset and revenue base of acquired companies and prepare them for public trading.

What is the expected financial impact of SBDG's new advisory services?

SBDG anticipates increased deal flow and revenue generation through its M&A and IPO advisory services.