Gross Revenue: $1,340,000

Gross Revenue Comments: 2006 Revenue

Cash Flow: $255,000

Cash Flow Comments: 2006 EBITDA

Business Overview:
The Company, once exclusively a print broker, is now a Software Company operating in the Electronic Print Procurement & Document Management Industry.
They have created the industry’s most advanced print-procurement & document management software used by numerous large corporations and facility management companies to facilitate the ordering and tracking of their printable material.

What the Proprietary Software Is:
This Web-based enterprise solution provides a user-friendly on-line print procurement interface. The profits of their large Corporate Clients increase substantially upon implementation of the application. The Client’s repeatedly state that the application has dramatically streamlined their print procurement process while producing substantial bottom line results. It is highly flexible, scalable and customizable; so it is inexpensive to install across entire organizations.

What the Software Does:
The Application allows users see every job cost, the price breaks and their remaining budget. Common human entry errors are fixed automatically; human input is kept to a minimum. Its print, branding, aggregation, job-tracking, delivery-tracking and reporting capabilities are near limitless. The software has automated pre-press capabilities thereby optimizing the printing process.

Why a Merger Makes Sense:
The Software is so highly scalable that there is no way the Company can maximize its full profit potential, due to the Company’s low distribution capabilities. Consequently, the Company seeks to merge with a synergistic company that has a larger distribution capability.

Competitive Advantage for Acquirer:
Reduce Costs, Increase Profits, Box-Out Competition!
Acquiring the Company provides the way for a Printing Company to box out all of its competition. With this application the Printing Company would be able to: (1) offer more services (2) significantly increase productivity due to built-in pre-press efficiencies (3) bid lower for the print services than competitors can. In short, the acquirer would under-price and out-profit competing printers or facilities management companies. More importantly, the revenues from the resulting monthly service contracts should be at a much higher profit rate than the competitors’.

Growth Opportunities
The Company continues to prove its software product concept through huge gains in client profits. The graph below shows how the company expects to grow if left alone to its very limited distribution capabilities. Again, the company recognizes that it cannot take full advantage of its software’s ground-breaking capabilities without merging or partnering with a company that has large distribution capabilities.