$250k SDE Acquisition: Limited Downside, Big Upside

Okay. V. And so this is a. It is a manufacturing business on. On the spectrum of, you know, highly technical, sophisticated manufacturing down to, you know, assembly. Where does it fall on the. On the spectrum there?

I. I think it's. It's. It's on the assembly end of the spectrum. So basically, it's a fairly simple manufacturing process where we have a lot of suppliers, where we buy different components that we basically weld and assemble together, we paint it and we package it, and that's it. So, yeah, it's manufacturing, but I would say it's very light manufacturing.

I don't mean that sounds like very critical. I don't mean it that way, but when you think about a value chain and some link of the chain adding a lot of value, they're, they're, they're, they're changing a lot. You know, the ingredients and what comes out.

The other side is quite different. And it sounds like there's not a lot of that happening here. And so probably a lot of the value is in those patents and in fact in your distributor relationships as opposed to the manufacturing work itself.

How do you think about, how do you think about what I just said, kind of strategically where the, the value in the, in, in the actual, the business itself and what it, what it, you know, produces into the world?

I think it's, yeah, partially correct. I think it's. Even though the manufacturing process itself is simple, it's still surprisingly many components that go into it and a lot of kind of design work over the 10 years that the company has been manufacturing the products has gone into kind of getting the right components, getting the right measurements and all of that in place.

So I think there are of course, as with any kind of product, product that works, we have sort of knockoff versions manufactured in China and Turkey that, that are basically copies of our product. And we've tested a few of those and, and in terms of durability, they, they are nowhere near our product. So, so it's, it's not exactly.

Even though the process itself is, is simple, the design is, is still has value in itself. But of course you're, you're, you're absolutely right that, that the main value lies with the patents, the distributor relationships, and then hopefully over time also in, in.

Our brand say more about those distributor relationships and so where revenue, how it's distributed in this business and how it flows into the business.

Yeah, so right now we have, we're, we're selling the products in roughly, and we have roughly 30 distributors or dealers. Some of them are larger actual distributors, meaning that they actually have dealers of their own around the country where they're based, whereas others are sort of individual dealers that sell directly to farms. And yeah, our revenue is, is, let's say 95% export.

So as I said, Finland is a very small country also in terms of number of cows. So it's, it's only about 5% of our revenue and the rest is, is, is coming from, from North America, Europe, a little bit in, in Asia and, and, and Africa as well.