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Our Goal

Our goal is to become the leading consolidator of product and service companies up to $30 million in size in the fragmented homeland security industry. We believe that our strong intergovernmental relationships, the operating and acquisition expertise of our management team, and our ability to address the needs of our management teams will allow us to become the “consolidator of choice” of acquisition candidates in the homeland security industry.

In order to achieve our goal, we will focus on:

  • Identifying acquisition candidates that meet our consolidation criteria as a platform company, including having a strong management team.
  • Attracting and acquiring companies through implementation of our decentralized management approach, coupled with strong performance incentives including the use of earn outs and contingent purchase payments for selling managers.
  • Achieving operating efficiencies and synergies by combining non-customer related administrative functions, implementing system and technology improvements and purchasing products and services in large volumes.
  • Acquiring follow-on companies that provide complementary products or services to our platform companies.
In general, we will continue to hold our ownership interest in companies as long as we believe that the company meets our strategic criteria and that we can leverage our resources to help achieve superior financial performance and value growth. When a company no longer meets our strategic criteria, we will divest the company and redeploy the capital realized in other acquisition and development opportunities.

Liquidity Events

We may provide liquidity through a number of means, including sales of an entire company or sales of our interest in a company, which may include, in the case of our public companies, sales in the open market or in privately negotiated sales and public offerings of the company's securities.

In certain cases, we may take our companies public through a registered spin off or stock dividend distribution by distributing a subsidiary's stock held by us to our shareholders and subsequently registering such shares with the SEC. Alternatively, we may use a rights offering, which is an initial public offering of a company directed to our shareholders. This would entail a grant of transferable rights to buy shares of the company's stock at a price established by the company, the underwriter and us supported by two independent valuations. Our shareholders would be able to exercise the rights, thereby participating in the initial public offering.

Our Value Added
Through our team of seasoned and dedicated professionals, we offer a complete range of operational and management services to each of our companies. These services are intended to provide our companies with significant competitive advantages in their individual markets. The operational and management services Homeland Security Capital Corp. provides to its companies are extensive and include:

  • A Trusted Partnership
    With a diverse range of resources and dedicated expertise, we provide companies with a trusted partner to enable business transformation and generate long-term growth.

  • Management
    Entrepreneurs and leaders of small companies often lack the range of management resources required to maximize their success. We can help recruit key leaders and provide critical support including development of effective equity and financial incentives that will make them more effective and provide a greater return on their efforts.

  • Business Development
    Because of our experience and knowledge of the market place, we can provide access to customers and external marketing channels that generate growth opportunities through strategic partnerships, joint ventures or acquisitions. We can assist in accessing potential federal, state, local and international customers.

  • Growth Capital
    Capital is the life blood of small growth companies. Through our extensive networks, we can arrange financing, acquisition support, lines of credit and guarantees.

  • Marketing
    A marketing plan and strategic market positioning are key elements of a growth program. We can assist with planning and implementation of effective market penetration, as well as branding and integrated and specialized marketing campaigns.

  • Technology
    With rapid and dramatic changes in technology and the delivery and availability of information, small growth companies need access to the latest technologies that can make a difference between success and failure in today's markets. We provide strategic assessment of technology market opportunities and trends and access to complementary technologies and strategic partnerships.

  • Operations
    For each of our companies, we will provide sufficient management interface to optimize a company's business, ranging from the establishment of facilities and administrative processes to the operations and financial infrastructure that a growing enterprise requires.

  • Legal and Financial
    Where appropriate, we will provide corporate, legal and financial structures and the expertise to execute a wide variety of corporate and financial transactions.

  • Compliance
    We can bring a company through the complexity of today's regulatory reporting environment in a cost-effective manner.