Small Business Development Group (SBDG) Signs MOU to Acquire Precision Industrial Manufacturer

Rhea-AI Summary

Small Business Development Group, Inc. (OTC:SBDG) has signed a Memorandum of Understanding for the acquisition of a precision industrial manufacturing company with over 50 years of experience. The target, based in California, reported 2020 revenues exceeding $1.8 million, affected by pandemic-related slowdowns. SBDG aims to build a portfolio of manufacturing and service-oriented companies, expanding opportunities in the aerospace and defense industries. The acquisition is pending due diligence and aligns with SBDG's strategy to foster growth in North American SMEs.

Positive

• Acquisition of a company with over 50 years of experience in aerospace and defense, potentially enhancing SBDG's portfolio.
• The target company is expected to offer new client opportunities in high technology and renewable energy sectors.
• SBDG's strategy to target small to medium enterprises is reinforced, with the aim to drive revenue and profitability growth.

Negative

• The target company's revenue declined to over $1.8 million in 2020 due to pandemic impacts, presenting potential integration challenges.
• Acquisition subject to due diligence could delay realization of strategic benefits.

Target Company is a USA based Manufacturer for Aerospace and Defense Industries

LADY LAKE, Florida, June 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Small Business Development Group, Inc. (OTC:SBDG) has executed a Memorandum of Understanding (MOU) for the acquisition of a precision industrial manufacturing company.  The closing of the acquisition is subject to satisfactory completion of due diligence. As a publicly traded holding company on OTC Markets, SBDG’s plan is to build its portfolio with industry centric verticals.  This is the first step in the development of a vertical of manufacturing and service-based holdings for SBDG. 

This acquisition target is an American company with over 50 years of experience and relationships with aerospace, defense, and industrial customers.  The target company’s 2020 revenue was in excess of $1.8 million, down as a result of the pandemic causing production slowdowns. Based in California, the company has an existing management team in place that has spent the last two years streamlining and modernizing the company to attract new clients in the industries of high technology, electric vehicle (EV) infrastructure, renewable energy, and automotive.  

“This business has a long history, impressive client base, and we feel it has significant potential.  The current CEO purchased the company from its longtime owners several years ago, with the intent to use technology to bring efficiencies that would increase production and grow the company.  The CEO did a phenomenal job weathering the pandemic, while still positioning for the future,” said SBDG Chief Operating Officer Brian Jue.  “We see new opportunities, clients, and potential products from this acquisition, with our involvement.  The fact that we can say ‘Made in America’ and to help expand this company to create more jobs here in the United States makes it that much better.”

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.SBDGHoldings.com

Note to Investors

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.

850 Teague Trail, #580, Lady Lake, FL 32159 US

Offices in California, Illinois, Maine, New Jersey, and North Carolina

1-407-385-0220

www.SBDGHoldings.com

FAQ

What acquisition did SBDG announce on June 16, 2021?

SBDG announced a Memorandum of Understanding for the acquisition of a precision industrial manufacturing company.

What is the expected revenue of the target company acquired by SBDG?

The target company reported 2020 revenues exceeding $1.8 million.

How does the acquisition align with SBDG's strategy?

The acquisition supports SBDG's plan to expand its portfolio in manufacturing and service sectors, particularly in aerospace and defense.

What are the potential challenges associated with SBDG's acquisition?

Challenges may include the target's revenue decline due to pandemic influences and the due diligence process that could delay integration.