Acfn Acquires A Portfolio $$

Approximately one year ago we decided to look at acquisitions as an additional strategy to grow our business. Many of our competitors are active acquirers and use that strategy to grow their business in addition to organic growth. By combining both the organic growth achieved every month by our excellent inside marketing team with an acquisition strategy we felt we could deliver better results to you our franchise owners and accelerate growth so we started talking to other companies. Most acquirers do what is referred to as "Roll-Up" acquisitions which are simply a large company that operates similar to a smaller company purchasing business from the smaller company. In this type of transaction the main benefit for the acquirer is accelerated growth and although they improve the acquired asset through economy of scale and larger company efficiencies the change to the revenue stream is moderate. In our case our business model is substantially different from the typical national ISO that uses armored car and service companies to operate. Our lower cost of operation is our competitive advantage and doing acquisitions is another way to leverage that advantage. The idea is simple "" purchase accounts from other companies that operate at a higher cost then move the accounts over to our unique ownership system and provide better service while leveraging our cost savings to increase profits. The acquired accounts are offered to franchisees in their respective areas and if they are able and interested they purchase those accounts to add to their ACFN business. Due to our lower cost of operations we can compete successfully for acquisitions while still creating excellent value for you our franchise owners. I am proud to report that after reviewing close to 20 deals we finally found one that was a good fit for ACFN. On August 17th we signed a definitive purchase agreement, opened escrow, proceeded to complete due diligence and are now ready to start transferring the accounts we purchased next week. A few facts about the transaction: Estimated net annual earnings for franchisees - $283,080 Number of Franchisees that will benefit from this transaction "" 11 Estimated number of transactions per year added to our network "" 237,153 Bottom line"" as soon as we complete transfers over the next 30 days the 11 participating franchise owners will have effectively increased their income by a total of 283K per year "" that is positive$$ There are 3 more deals we will start investigating as soon as this one is completed successfully and we look forward to doing more of these in the near future. We also have some exciting developments with bank branding that we expect will take organic growth to new highs in the coming months - more on that in future newsletters. Until then do the math and keep turning the ACFN wheel of fortune!!! Leads + Drops = Contracts = $$$$$ -Jeff Kerr President

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