LD Holdings is in the business of acquiring profitable baby boomer-owned businesses with brand equity, quality personnel and management, $2 – $20 million in revenues, and the prospect of creating a portfolio that will yield great venture capital returns with minimal venture capital risk.
The company’s business model is aimed at a large business-owning segment of the population, which it believes is financially underserved in these unusual economic times. The company means to effect a comparable growth and acquisitions strategy as those used by established public companies and other large cap institutions.
LD Holdings is focusing on the $2 to $20 million sales sector for a reason. Because of the difficulty of financing and little competition in this area, there are many opportunities for buying at great value. There are also numerous value drivers:
1. One value driver is the ability to bring together smaller illiquid, non-transparent private companies and build larger public company groups, which will allow for higher valuations because of the growth in size.
2. A second is that valuation differences between private and public companies in the small company sector are two to three times higher for public companies.
3. A third value driver is to bring in younger, entrepreneurial, and highly motivated leaders to replace the retiring owners, a move which will drive organic growth through the use of the latest technology and marketing and sales skills.
The company’s early focus will be on four broad business sectors that can help it meet its goal of doubling each acquired company’s value over a three to five year time period: (a) Finance and Business Services; (b) Entertainment and Media; (c) Outdoor Services; and (d) Surface Finishing.
LD Holdings is in the initial stages of implementing its business plan to draw small baby boomer business owners, younger entrepreneurial leaders, and financial investors together. The company currently has a database of 250,000 potential companies, 800 entrepreneurial leaders, and a growing number of institutional and non-institutional investors.
For more information, visit www.ldholdings.com
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