LD Holdings, Inc. (OTCQB: LDHL) has identified what is a significant business opportunity by solving a major problem facing the “Baby-Boomer” generation. Financing the purchase of companies that have sales of $25 million or less and Earnings of less than $4 million, has been difficult and now with new banking regulations is almost impossible.
With over 25 million small businesses in the USA and $17 trillion worth of businesses to be sold over the next 15-20 years, there will be many opportunities for wealth generation.
We intend to help investors capture this wealth generation by sourcing companies for sale, doing the proper due diligence and if they meet LD Holding’s criteria, acquiring these companies.
LDHL intends to move its acquisitions into the public market and acquire these companies for $.50 to $.75 on the sales dollar while financing them for $1.50 to $2.00 on the sales dollar due to the public market leverage of 2-4 times.
The following needs will be serviced and provided by LD Holdings Inc:
1. Source Boomer businesses that fit LD Holdings acquisition criteria
We will source and locate businesses with sales under $25 million, profitable for the last 3 to 5 years, or have a well defined path to profitability. We need to purchase the company for 4 X Earnings or less and would require to have an incentivized management team in place that can continue running the business on a post-acquisition basis. The Company will also be looking for the “X” factors, which are those aspects of the company that are unique or provide a competitive advantage or represent barriers to entry from competition.
The company plans to focus its efforts on becoming a “Known Buyer” of small companies that meet its acquisition criteria. Using $10 million as average revenues per company, LD Holdings goal is to acquire 18 companies over the first 3 years which will result in consolidated total revenues of $180 million. The company can envision the initial equity investment in a business will yield a return at least 3 times (300%) within a 3-year period of time (over a 50% compound yearly return).
2. Maintain database of Young Entrepreneurial Managers
The company will maintain a database of talented individuals with various specific backgrounds, allowing us to have expertise available for both acquisition evaluation, and strategizing the post-acquisition business model for each potential acquisition, once the financial aspects of the transaction are determined. We also will look to acquire companies that have an existing management base that can help in the transition to grow organically and profitably.
3. Maintain and expand a database of Investors to help finance acquisitions.
The company intends to fund its objectives through the use of a qualified and screened database of 1,500 accredited investors (Angels and Institutions) and 1,500 non-credited investors. The database will be developed through the efforts of its corporate office and Company affiliated websites, nanocapnation.com for U.S. based investors and nanocapglobal.com for offshore non U.S. investors.