Logistical Support continues to actively seek acquisition targets among specialty military aircraft manufacturers. The company anticipates completing several acquisitions in 2006 that will be immediately accretive to earnings. Management believes acquired growth will facilitate a significant reduction in the average costs of their specialized parts as more are sold under additional contracts. The company stands to gain from administrative economies of scale as management consolidates the bid submission process of multiple staffs under one team. In addition, Logistical Support anticipates a substantial decrease in its average sales cycle as the company pursues possible acquisitions in the law enforcement and homeland security markets.
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