1847 Holdings LLC · OTC:LBRA
1847 — Investor Presentation (September 2020)
20 slides from 1847's investor presentation, Sep 1, 2020
Slide 1: A Uniquely Diversified Public Approach to Private Company Ownership
A Uniquely Diversified Public Approach to Private Company Ownership OTCQB: EFSH September 2020
Slide 2: Legal Disclaimer
Legal Disclaimer 2 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 id
Slide 3: John Neff quote on unpopular investing
3 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
Slide 4: Corporate Overview
1847 Holdings LLC | OTCQB: EFSH | September 2020 4 Corporate Overview o Owner and manager of a diverse group of lower middle - market businesses that have traditionally been owned by private investors, headquartered in the US, operating across an array of industries ▪ Current and future subsidiaries
Slide 5: Investment Highlights
5 Investment Highlights ▪ Growth and Income – fueled by the diversified cash flows from 1847’s current and future controlled operating subsidiaries ▪ Access to a Unique Asset Class – provided through the 1847 strategy of acquiring leading lower middle - market niche businesses (Positive EBITDA < or
Slide 6: The Typical Private Equity Fund: Structure
6 The Typical Private Equity Fund: Structure 1847 Holdings LLC | OTCQB: EFSH | September 2020 Limited Partners (Investors) (public pension funds, corporate pension funds, endowments, foundations, sovereign wealth funds, family offices and high net worth individuals and retail investors) General Part
Slide 7: 1847 Holdings Structure vs. Typical Private Equity Fund
7 The Typical Private Equity Fund: Structure 1847 Holdings LLC | OTCQB: EFSH | September 2020 Shareholders (Investors) (public pension funds, corporate pension funds, endowments, foundations, sovereign wealth funds, family offices and high net worth individuals and retail investors) 1847 Partners LL
Slide 8: Peer Comp Performance
8 Peer Comp Performance Compass Diversified Holdings ( NYSE : CODI) , with current market cap in excess of $ 955 m illion , has proven the positive return possibilities available for a “true” public - private holding company platform while seeking acquisitions in the highly competitive middle market
Slide 9: Acquisition Strategy & Philosophy
9 Acquisition Strategy & Philosophy ▪ Mission – preferred partner for today’s “nano - cap” companies in the U.S. ▪ Objective – acquire stable businesses at accretive pricing to our existing book value with limited risk of cash flow volatility and technological disintermediation ▪ Acquisition Size an
Slide 10: Acquisition Criteria
10 Acquisition Criteria x Targeting lower middle - market (LMM) companies with revenues of $7.5M+ and historically consistent cash - flow positive operations x Positive EBITDA less than $2M in trailing 12 - month period x Clearly identifiable “blueprint” for growth with potential breakout growth dri
Slide 11: Current Subsidiaries
11 Current Subsidiaries Headquartered in Grand Junction, Iowa, Neese Inc . has provided a wide array of products and services for the agricultural industry for over 28 years . Neese's largest and fastest growing revenue source is providing waste disposal and land application services primarily for t
Slide 12: Deal Flow Generation
12 Deal Flow Generation □ Sophisticated d atabase c onstruction □ ~1,000 intermediaries from 700 firms □ Systemic review and annual list update □ 4 professionals mak ing 5 - 6 calls per week □ Cycle through list 2x per year □ ~3,000 person mailing list □ Systematic review and update of list annually
Slide 13: Acquisition Process
13 Acquisition Process Screen & Log Preliminary Diligence Preliminary Proposal Management Meeting Letter of Intent Diligence Internal Dialogue Financing Documentation Investment Committee Approval Fund and Close Pre - LOI Post - LOI 1847 Holdings LLC | OTCQB: EFSH | September 2020
Slide 14: Portfolio Company Management
14 Portfolio Company Management o Weekly dialogue with m anagement o Extensive strategic planning sessions o Quarterly board meetings o Active involvement of operating partners o Development of operating metrics, sales and financial reporting packages o Establish authority matrices and other governa
Slide 15: Financial Highlights
15 Financial Highlights Diversified revenues and customer base 2019 Segment Revenue (audited) Future acquisitions expected to further revenue diversification $0 $10 $20 $30 $40 $50 2017 2018 2019 Total Revenues (in millions) $0 $5 $10 $15 $20 3Q19 4Q19 1Q20 Quarterly Revenue (in millions) 20% 71% 9%
Slide 16: Value Creation
16 Value Creation Drive Deal Flo w 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/accountability and introduce
Slide 17: The Typical Private Equity Fund: Return Scenario
17 The Typical Private Equity Fund: Return Scenario 1847 Holdings LLC | OTCQB: EFSH | September 2020 $4.0 Million Equity 40% of Entity Value $6.0 Million Debt 75% of Entity Value $12.5 Million Equity 62.5% of Entity Value $7.5 million Debt 37.5% of Entity Value $10MM Enterprise Value when Purchased
Slide 18: Goedeker's Spin-out Creates Long Term Value for EFSH Shareholders
18 Goedekers Spin out Creates Long Term Value for EFSH Shareholders 1847 Holdings LLC | OTCQB: EFSH | September 2020 $0 of Equity $4.2 million of Seller financing, $2.9 million of Senior and Mezzanine Debt $55.0 Million of Equity $3.5 million of Senior Debt 2 to 5 year Ownership Period □ Goedekers ’
Slide 19: Senior Leadership Team
19 Senior Leadership Team Ellery W. Roberts, Founder & CEO Edward J. Tobin, Managing Director Robert D. Barry, Director 18 years of private equity investing experience; directly involved in $3+ billion of transactions. Formed RW Capital Partners LLC, an investment manager, approved by the Investment
Slide 20: Corporate Headquarters
OTCQB: EFSH Corporate Headquarters 1847 Holdings LLC 590 Madison Avenue, 21st Floor New York, NY 10022 Phone: 212.417.9800 Fax: 917.793.5950 Web: 1847holdings.com Investor Relations Contact Craig Brelsford RedChip Companies Phone: 407.571.0902 Email: craig@redchip.com
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