Investor Information Sheet
Join us in profiting from the forthcoming massive transfer of generational assets from the “Baby-Boomer” generation..
- LD Holdings, Inc. (OTCBB: 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 $20 million or less and an EBITDA of less than $3 million, has been difficult and now it is almost impossible.
- With over 25 million small businesses in the USA and 15 trillion dollars 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 preparing these companies for sale, financing the acquisition, financing their growth and/or acquiring the companies.
- LDHL intends to move its acquisitions into the public market and acquire these companies for $.50-$.75 on the sales dollar while financing them for $1.50-$2.00 on the sales dollar due to the public market leverage. (2-4 times).
- With the announced M&A activity, LDHL’s stock should appreciate substantially in value.
The following needs will be serviced and provided by LD Holdings Inc:
1. A need for Marketing, Sales and other Business Services to prepare the businesses for sale.
A direct sales effort targeted toward companies that need additional sales; which makes most companies a prospect. While we may charge a small retainer, the majority of our fee is a percentage of the increase in sales so it is clearly a performance oriented solution to the owner’s sales problem. This consulting service is typically provided under a long term multi-year contract so that as sales continue to grow, so does our income.
2. A need for buyers for these businesses.
We will source and locate businesses with sales under $20 million, profitable for the last three of five years, or have a well defined path to profitability, can be purchased for 4 X EBITDA or less, have a management team in place that can continue running the business on a post-acquisition basis and finally, the company will 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 $8.33 million as average revenues per company over the first 3 years will result in consolidated total revenues of $150 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).
3. A need for entrepreneur managers to manage these businesses.
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.
4. A need for the financing of these businesses.
The company intends to fund its objectives through the use of a qualified and screened database of 1,000 accredited investors (angels and institutions) and 1,000 non-accredited investors. The data base will be developed through the efforts of its corporate office and two of its websites, NanoCapNation.com for U.S. based investors and NanoCapWorld.com for offshore non-U.S. investors.
5. A need for competent money managers to manage the money of these business sellers.
A wealth management service provided by LD Financial, Inc. is targeted at wealthy individuals, small institutions and pension plans. The company has access to several outstanding money managers which provide advice for a fee, using primarily the value style of investing. This style of investing focuses on finding undervalued businesses that can be purchased at a discount (usually 35%+) from their intrinsic value.
Significant and Real Growth Opportunity
In our first full year of operations, the company plans to acquire at least 3 companies with $25 million sales and an EBIT of $2.5 million. Once the company has its investor base in place, the company intends to quicken its acquisition pace. LDHL and its growing divisions will add an additional 42 acquisitions over the next four (4) years resulting in a total sales of $420 million and an EBIT of $42 million.
The following table sets forth LD Holdings Inc.’s estimates for revenue and earnings before interest and taxes. These estimates are for the first five (5) full years of operation after acceptable financing is sourced. These estimates are forward looking and are based on acquiring and closing acquisitions and the availability of financing.
| Year (1) | Year (2) | Year (3) | Year (4) | Year (5) | |
| Revenue | $25.0 Mil | $75.0 Mil | $150.0 Mil | $270.0 Mil | $420.0 Mil |
| EBIT | $2.5 Mil | $7.5 Mil | $15.0 Mil | $27.0 Mil | $42.0 Mil |
Rationale for LD Holdings Inc. Investment
- We are Public (Liquidity and ownership allows each individual investor to plan their own “Exit Strategy”).
- There are funding sources available to public companies that are not available to private companies.
- Ability to do Private Placements and Public Offerings.
- Publicly traded stock can also be used to structure acquisitions.
- Transparency via audited financial statements and mandated disclosures of major corporate developments that are requirements of most public traded companies.
- S.E.C regulations and oversight requires the President/CEO and Chief Financial Officer attest to the accuracy of the company’s financials and filings.
- Company’s stock is trading at an all-time low
- Tight Trading Float—about half of those have a cost basis above $2.00).
- Management is shareholder and market conscious.
- Low operating cost.
- We have a mature, believable, scaleable Business Plan.
- Seasoned management that has Public Market experience in all disciplines.
- We have identified our opportunities and our problems.
- Management is committed and has invested in the company.
- Can purchase companies for $.50 - .75 on sales dollar and finance them for $1.50 - $2.00 sales dollar (2 -4 times leverage).
- With the announced M&A activity, LDHL’s stock should move up substantially.
- Based on achieving our financial assumptions over the first five years, a shareholder of LDHL (The Parent) will receive shares as spin-offs of subsidiaries that become public companies.
Contact:
Mr. John R. Ayling
Chairman & CEO
LD Holdings, Inc.
1070 Commerce Drive, Building 2, Suite 303
Perrysburg, OH 43551
Phone: 419-873-1111
Fax: 419-873-1141
e-mail: john@ldholdings.com
Disclaimer:
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.