LD HOLDINGS IS FOCUSING ON COMPANIES
OF $25 MILLION IN REVENUE OR LESS.
Acquiring Baby Boomer Businesses that do not have a success plan or exit strategy.
LD Holdings, Inc. is focused on the Acquisition and ongoing Management of smaller companies ($2 - $25 million) owned by Baby Boomers who do not have a succession plan or exit strategy. Based on Company research, there are upwards of 8 million ($12 trillion) of these businesses that will be exchanging hands over the next 10-12 years - representing a significant opportunity.
LD Holdings, Inc. is effectively structuring itself as the Berkshire Hathaway of these Boomer-owned businesses. The business model involves the acquisition of companies that have proven profitability and are entrenched with experienced personnel, have brand name equity, a solid and loyal customer base, and consistent, predictable cash flow. As the original owner/management plans retirement, a younger more aggressive management team is placed into the business with a more aggressive business plan focused on maximizing shareholder equity.
Introduce your business to LD Holdings, contact us below.
LD Holdings, Inc. (OTCQB: LDHL) located in Northwest Ohio is a Financial and Management Holding Company that has identified a significant business opportunity regarding the largest demographic group in America representing 78 Million Americans born between 1946 and 1964 known as the Baby Boomers! You will have the opportunity to purchase stock in LD Holdings that intends to attempt to fill a void in the small business world regarding the sale and transfer of businesses from Boomer owners to the next generation.
Historically, Business sellers didn’t want to provide financing to the Prospective Buyer. Unfortunately today these types of transactions are normally too large for most individuals, too risky for banks who now have new regulations and too small for most institutional type investors. Our business model seeks to capitalize on this massive transfer of generational assets, as the Boomers transition from ownership of small businesses into retirement, having to accept values below their true market value just to get the business sold. LD Holdings is focusing on companies of $25 million in revenue or less.
Currently there are over 25 million small businesses in the United States worth over $17 trillion that will be sold over the next 15-20 years creating wealth generation opportunities. LD Holdings will become a “Known Buyer” of Boomer businesses and the key to this business model is quite simple. The Company will acquire established profitable companies with existing management and personnel, brand equity, customers and cash flow at discounted prices and will then attempt to produce Venture Capital level returns without the Venture Capital level risks of a Start-Up Company.
The 5-7 year plan is to accumulate at least 50 of these small companies and to meld them into cohesive business units whenever possible. Using a conservative $10 million of revenues as an average, this will result in consolidated total revenues of $500 million over that period of time.
The Company will be aggressively using the Internet and various major investor groups to find Angel Investors that are looking for a higher than normal rate of return to provide the capital while the search for these business acquisitions is being conducted. The Company will emphasize that it’s looking for long-term investors who are willing to hold their positions for at least a year to maximize results and minimize individual tax costs.
LD Holdings is a Financial and Management Holding Company has two operating divisions. There is the Business Services Division that includes the buyers, managers and investors of the prospective companies and the Business Operating Division that will manage the portfolio of companies that LD Holdings will have varying percentages of ownership. At the Corporate level will be the support professionals that will be needed in various capacities by all of the acquisitions.
DAVID A. WHITE
CFO & LEGAL COUNSEL
CHAIRMAN & CEO
DIVISION PRESIDENT - LANDSCAPE
Boomers are the largest demographic in America, with 78 million born between 1946 and 1964!
10,000 Boomers will turn 65 every day for the next 19 years! Every 7 seconds, a Boomer turns 50!
Delivering Venture Capital level returns without the Venture Capital level risk.
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, that have been 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 up to 3,000 accredited investors (Angels and Institutions) and 1,500 non-credited investors. The database will be developed through the efforts of its corporate office and affiliated Company websites and partnerships.
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