Q: What constitutes short-order?

A: Short-order is a moving target. Five years ago, short-order was considered 1-20 or 20-50. Today anything under 1,000 pieces is considered short-order. Up to 100 copies, our pricing is half that of our competitors because we have created an efficient business model, and we have taken full capabilities of our partnerships with major organizations within the retail industry, to create a large volume of new customers, as well as the efficiencies of processing, which has lead to a lower cost that is transmitted to the customer.

Q: What's your time frame for investments?

A: We are currently in talks with several different entities as an acquisition target. At the same time we are negotiating with several companies within the investment community to support the growth of the company. It is a step by step plan to increase our footprint nationally as well as internationally. Currently all these targets are being identified and we foresee our first international expansion into the European market, and then South America, as well as Asia.

Q: What would be an ideal acquisition?

A: Today the optical media industry is pretty fragmented. There are a lot of small players that may meet our acquisition criteria, if the companies have a footprint in their local market and are specialized in certain segments of the market we are trying to enter; this would be an ideal acquisition. For example, we are moving into data-type business, and we are looking for companies with relationships with major corporations in these areas. The other would be a film-related industry company, with similar connections.

Q: How many purchases are you considering?

A: Within the next three years, we are considering 7-10 acquisitions.

Q: How much does DiskFaktory plan to spend in
     the next three years?

A: Anywhere from US$10-15 million.

Q: How do you fund your acquisitions?

A: We are looking to external investment, as an infusion of capital into the company. If it makes sense, and the management of that company is cooperative with the acquisition, as well as having a unique skill set, we may do a stock-type acquisition – in order to keep the management team of that company in place.

Q: Are you seeking private equity partners as
     investors? Yes.

A: Are you considering acquisitions in distress, or more those that are profitable? Both. More than anything else, our interest is to identify the right target. Even if they are distressed, as a result of not running the business efficiently, it could still be a good deal. Because of our volume, our efficiencies, and labor costs, as well as cost of goods is better than half of what our competitors are paying. Taking this into consideration, if a company is generating annually US$5 million in sales and they are not profitable, we could, by consolidating the manufacturing process, turn that company and their business model into a profitable operating unit. For more information, email Leonard S Johnson at: