Acquisitions

STAS, LLC is multi-industry-specific and is highly experienced in a wide variety of businesses including banking, electronic transactions, web-development, international consulting, Chinese markets, management of Hotels, Restaurants, Clubs and Resorts and more. We look for Acquisitions or Joint Venture Equity Partners or Management Executives where a company is in its life cycle and assess the factors that affect the growth of its market segment and the ability of the company to increase market share and profit margins. For our partners and investors their interest is in five types of transactions:

1) Small to Mid-Size market niche Companies
Our investors prefer companies that have demonstrated strong growth and are capable of sustaining a 15% to 20% earnings increase per annum for 3 years to 5 years after acquisition. Pre-tax earnings for the latest 12 months should be at least $2,500,000. Typically these are companies with high asset bases in relation to shareholder value and that, because of their growth, consume capital. Thus we seek to provide a capital structure that addresses not only the acquisition but the continued financial requirements of a growing business. When and where appropriate, we will invite the retention of an equity interest by the seller(s) or key management. This is an attractive incentive for owners/managers seeking personal liquidity but wishing to remain active in the business and thus benefit from future equity appreciation.

2) Industry consolidation
Our investors want to acquire a company who can serve as the nucleus to add related businesses. Usually these are in fragmented industries where consolidation can complement a company’s competitive position, improve customer service and decrease product or service cost. One of the interest is the e-entertainment business in Las Vegas and Los Angeles areas.

3) International investments
We believe there are consequent opportunities to achieve superior investment returns in under-performing markets with a new management and thechnologies. Unlike market niche companies, purchase prices for transactions in this category should bear a reasonable relationship to asset value. Our preference in this category is for projects in excess of $2,500,000 to $5,000,000 million in Cuban, Chinese and Eastern-European markets.

4) Acquisition & Management focus
In all of the three above-mentioned categories, our focus is to identify such companies that have the potential for significant profit improvement. Our procedure is to provide strong incentives and equity ownership for remaining management within the target company. Our experience shows that companies produce success because of the quality of their management. Consequently, we participate as active advisers and directors and work with management to establish realistic strategic and operational objectives. Once these goals are established, the company’s management is responsible for all day-to-day business decisions.

5) New Green Industry – legal MMJ
the new regulation opens a wide range of potential investments in this industry. We have the expertise to assist an investor from the start of this new business including licensing, plant constructions,  growing expertise, dispensary, MJ Freeway software support and maintenance, surveillance 24/7 of the business in real time. Also the development of the payment solutions for the MMJ industry with debit cards, financial kiosks, vending machinery, pPOS tablets and more.

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