EFactor Group Corp. is the owner of a group of entrepreneur-focused service companies, as well as EFactor.com, a niche social networking platform designed to provide content and resources for entrepreneurs. Through EFactor.com, EFCT allows entrepreneurs to interact with mentors, investors, peers and resources through the use of a proprietary algorithm created to help them connect with the right people. In addition, the company provides knowledge, facilitates funding preparation and reduces business costs through a mix of online social networking and offline domestic and international events. The company’s subsidiaries include EQMentor, MCC International, HT Skills, Member Digital, GroupCard BV, ELEQT Limited and Robson Dowry Ltd.
EFactor.com is currently at the core of EFCT’s business plan. The site is designed to provide end-to-end solutions for entrepreneurs with growing businesses through a unique interaction platform. In November 2014, SeeThruEquity declared the company a market leader in the niche for social networks for entrepreneurs whose members are business owners in a network dedicated to their requirements.
EFCT is currently pursuing an aggressive acquisition strategy. Following the purchase of two companies in 2013, EFCT targeted the acquisition of eight companies in 2014 with five completed as of November 2014. The company’s primary acquisition targets offer products and services for entrepreneurs and provide the potential for substantial revenue growth, a strong history of profitability and healthy product margins. SeeThruEquity predicts that the aggressive acquisition strategy will lead to significant increases in revenue and earnings over the next few years, as well as expansion and enhancement of current products and services.
With a relatively new and rapidly evolving niche market, EFCT has potentially enormous market potential. The number of entrepreneurs around the world is currently estimated to be near 470 million, which could lead to millions of new hires and newly-created jobs in the coming years. This expansion provides companies servicing entrepreneurial networks, such as EFCT, with enormous growth potential in the near future. With the advantage of having the first and only entrepreneurial network of its kind, EFCT is in prime position to capture a large share of the rapidly expanding sector.
EFCT currently generates revenue through a combination of membership fees, sponsorships, advisory services, public relations and advertising. The company’s recent acquisition of multiple profitable companies has certainly contributed to its top line, and continued growth is expected as a result of the strong synergy the new subsidiary companies share with EFCT’s primary business line, EFactor.com. Analysts expect continued growth as a result of the recent surge in the entrepreneurship market. With the company’s acquisitions providing increased tools and services serving the entire gamut of business needs, demand for EFCT’s services is expected to increase from 1.3 million subscribers at present to 5 million subscribers by the end of 2016.
Utilizing discounted cash flow analysis and peer group multiples, EFCT was given a fair market value of $1.85 per share as of November 2014. Relative to its current price of $0.11, this valuation represents an upside potential of 1600%. When evaluated on a peer group valuation, EFCT was given a fair value range of $0.68 to $0.80 per share. With the company’s recent acquisitions of profitable and related businesses, EFCT is expected to significantly ramp up its revenue throughout this year. SeeThruEquity has predicted significant improvement of the company’s valuation multiples over the coming months.
EFCT operates in a relatively new and unproven market, and, while the company may face headwinds in developing a scalable technology infrastructure that can effectively handle increased member usage, a lack of direct competition puts the company in a strong position in the rapidly expanding entrepreneurial services market. With a unique platform and aggressive expansion plans, EFCT is putting itself into a firm position to deliver high operating margins as its revenues increase in the coming years. With operating margins of 18% forecasted for this year and growth to 52% expected by 2019, EFCT is placing itself firmly at the top end of its market and positioning for a bright future.
For more information, visit www.efactorgroup.com
