Tuesday, December 11, 2007
Owner Sells African American Engineering Company
Rodney Hunt, right, just sold his RS Information Systems (RSIS) to Wyle, a Southern California aerospace engineering company, for a hefty sum. RSIS provides information technology, systems engineering, scientific support and management consulting. RSIS had more than $300 million in annual revenues and recently partnered to win a $1 billion contract with the U.S. Department of Energy. Our guess is Wyle wrote him a $100 million check. Hunt is 75% owner of RSIS. Don't you need a tax deduction Mr. Hunt?
Many minority owned firms find it hard to compete once they graduate from the 8(a) affirmative action program. It was smart for Hunt to sell when he did because revenues were falling quickly each year in the competitive open market. It is hard to impossible for a minority-owned firm to compete in the marketplace. We are marketeers but if a highly successful firm like this one cannot swim then the market waters must be shark infested. Discrimination is still an imperfection in the marketplace that confounds the best of minority firms. AAEA has felt its bite. Regardless, Mr. Hunt made a very good business decision and he is probably somewhere playing golf or enjoying his yacht. Or maybe he is creating or investing in another business. (The Washington Post)