1847 Holdings LLC · OTC:LBRA
1847 — Investor Presentation (July 2017)
18 slides from 1847's investor presentation, Jul 26, 2017
Slide 1: A Uniquely Diversified Public Approach to Private Company Ownership
1847 A Uniquely Diversified Public Approach to Private Company Ownership
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains certain forward-looking statements within the meaning of the federal securities laws. These statements may be made a part of this presentation or by reference to other documents we file with the SEC. ‘Some of the forward-looking statements can be identifie
Slide 3: Table of Contents
Table of Contents What is 18472 What will 1847 provide to Shareholders? What is the Structure of 18472 How has 1847's only public comp performed? What is 1847's Acquisition Approach? What are 1847's Target Company Characteristics? What is the State of the Lower Middle Market? How does 1847 generate
Slide 4: It's not always easy to do what's unpopular
It's not always easy to do what's unpopular, but that's where you generate above average returns. Buy businesses that look mundane to narrow-minded investors and hang on until their real value is recognized. 1847 “channeling” John Neff (1847
Slide 5: What is 1847?
What is 1847? (OTCBB Ticker: EFSH) Upon closing the acquisition of two (2) companies under contract, we will become an owner and manager of a diverse group of lower middle market businesses that have traditionally been owned by private investors, headquartered in the United States operating across a
Slide 6: What will 1847 provide to Shareholders?
What will 1847 provide to Shareholders? Growth and Income — fueled by the diversified cash flows from 1847’s controlled operating subsidiary and future operating subsidiaries Access to a Unique Asset Class — provided through the 1847 strategy of acquiring leading lower middle market niche businesses
Slide 7: What is the Structure of 1847?
What is the Structure of 1847?
Slide 8: How has 1847's only public comp performed?
How has 1847’s only public comp performed? Compass Diversified Holdings (Ticker: CODI) with current market cap in excess of $1.0 Billion has proven the positive return possibilities available for a “true” public private holding company platform while seeking acquisitions in the highly competitive mi
Slide 9: What is 1847's Acquisition Approach?
What is 1847’s Acquisition Approach? Mission — preferred partner for today's lower middle market or “nano-cap” companies in the US. Acquisition Size and Structure — control buyouts or recapitalizations of companies with enterprise values between $5 and $50 million financed primarily with equity or r
Slide 10: What are 1847's Acquisition Characteristics?
What are 1847’s Acquisition Characteristics? Targets must live and thrive in the Lower Middle Market (LMM) ecosystem Revenues of at least $7.5 million with historically consistent cash flow positive operations EBITDA of at least $1.5 million in the current year of operations Clearly identifiable “bl
Slide 11: What is the State of the LMM?
What is the State of the LMM? - LMM companies represent over 90% of U.S. private companies - Over 90% of private equity capital deployed in middle market and larger deals ‘TOTAL ENTERPRISE VALUE 2550 62x ox 68x 6x 66x bax 6x 764 50-100, 68x 87x 68x eax 78x 73K 70x 525 100-250 73K Tax 75x 78x 20x 80x
Slide 12: How Does 1847 Generate Deal Flow?
12 How Does 1847 Generate Deal Flow? 1847 Calling Program Electronic Outreach Sophisticated Database Construction + ~3,000 — person mailing list ~1,000 intermediaries from 700 firms + — Systematic review and update of list Systemic review and update of list annually annually + Develop specific marke
Slide 13: 1847 Geographic Coverage
1847 Geographic Coverage © 1847 Portfolio Company * 1847 Offices
Slide 14: What is the 1847 Acquisition Process Pre-LOI?
What is the 1847 Acquisition Process Pre-LO] ‘Screen and Log Preliminary Diligence Preliminary Proposal Letter of intent 1. Win “hearts and minds’ 2. Further refine and validate thesis 1. Different ourselves 2, Make thao say no 1847 Tactics 1, Review materi and dscuss wth itemetiy 2 ently Operating
Slide 15: What is the 1847 Acquisition Process Post-LOI?
What is the 1847 Acquisition Process Post-LOl itigencs Internal Dialogue Financing Documentation Investment Committes i i i i i i H Hd jal ‘1, Seek guidance from entre firm's investment 1. Over-communicate on formal and informal basis 1. Achieve intemal approval for deal 2. Fund and close 2. Formall
Slide 16: How does 1847 Manage Portfolio Companies?
How does 1847 Manage Portfolio Companies? Weekly dialogue with Management Extensive strategic planning sessions Quarterly board meetings Active involvement of operating partners Development of operating metrics, sales and financial reporting packages Establish authority matrices and other governance
Slide 17: In short...How is Value Created?
In short...How is Value Created? Drive Deal Flow... Proactively drive deal flow with a willingness to investigate anything and everything without preconceived bias... Buy Right... Acquire stable, mature businesses at attractive prices... Build to Own in Perpetuity... Institute return driven metrics/
Slide 18: Senior Management Background
Senior Management Background ery W. Roberts she Chit Execute Oftice and Founder of 1647 Hldgs LLC aad has held nt poston since the inception of he Campy. As he funder of 1847, tr. Reberts ‘bang over 1B years of pate equty sexing experience fo the Managemen team. Pr Yo leuning 1047, Robes famed RW Ca