The primary shareholder of a large international manufacturer (the "Business") of military and security equipment that recently experienced a substantial increase in sales wanted a valuation for estate planning and strategic planning purposes.

The Business was a major manufacturer of security-related products sold primarily to the United States government. The terrorist attacks against the United States ("U.S."), and the subsequent war against terrorism, resulted in a substantial increase in military and security spending at the federal, state, and local levels. As a result, the Business' sales increased from approximately $17,000,000 in 2001 to $25,000,000 in 2002. Sales were projected to increase to $37,000,00 in 2003.

SP&H was retained to value the Business based on the recent changes in its operating environment. In order to accurately value the Business, SP&H conducted an in-depth analysis of the sustainability of the Business' increase in sales.

After extensive research and discussions with management, SP&H determined that projected sales were sustainable because the Business had expanded its product offerings and distribution channels to serve non-governmental consumer and commercial markets.

The graph below illustrates the recent increase in the Business' sales and gross profit margin.

By researching the Business' industry and analyzing the sustainability of the recent positive changes in the Business' operating environment, SP&H was able to provide an accurate assessment of the Business' value, which aided the Buisness' primary shareholder in estate planning and strategic planning.