CWC Holdings, LLC
CWC Holdings, LLC is a Texas Corporation, formed in 2010 specifically to acquire existing business with high margins, scalable growth models, and positive cash flow. Recently locating 2 targets, CWC has decided to pursue initial funding.
As of the date of this Memorandum, CWC Holdings LLC is managed and owned by Daniel Cook, who owns 100% of the stock of the Company.
CWC proposes to leverage the funds raised to acquire 2 targets, in unrelated industries, both with positive cash flows to provide an initially diverse investment across strong sectors to hedge industry specific risk and business related cash flows.
The first target is C.I.A. (Currency Investors Alliance), a full service financial publishing company, specializing in Currency and Forex education. The financial information and publishing industry is one of the most lucrative industries in the world. In the times that we live in it is imperative for people to get high quality information to make quality financial decisions. C.I.A. clients are those looking to learn to manage a portion of their investing capital using alternative investments like Foreign Exchange or what is referred to as alpha investment. The owners have been serving this market since November of 2006. The key assets are the products and services, the prospect and customer lists, the marketing materials and funnels, and the website real estate. C.I.A. is a lead player in the Financial Publishing Niche with a strong reputation that requires a limited amount of time necessary to earn a strong net profit on the business. There are already turn-‐key marketing funnels setup and in use that a new owner can seamlessly step into. As well as access to partners where additional products and services can be created.
An additional asset to the business is that this is a great new client feeder program for any hedge fund or managed fund. Clients always inquire where to invest their money, making them extremely valuable real time, highly targeted, qualified investor leads.
• Strong track record of success
• Numerous active products and services
• Loyal customer base that buys new products when offered.
• Recurring revenue
• Rapidly expanding niche
• Strong white label agreements and affiliate partnerships
• All systems are in place.
• Lead funnels and sales funnels in place.
• Multiple products plus a system for creating new products.
• Ability to generate leads through paid advertising to the lead generation websites.
• Email lists over 112,000 (includes 49,220 Prospects and Customers inside of infusionsoft, 60,000 Prospects inside of bronto and 2,903 Customers inside of Infusionsoft.
The second acquisition target is a 15 Year Old Heavy Equipment Sales and Rental Business.
2014 has picked-up with an increase in sales and cash flow from 2013
2013 Revenues were 1,873,344 with Cash Flow of 349,132.
2012 Revenues were 1,770,579 with Cash Flow of 322,659
2011 Revenues were 1,522,823with Cash Flow of 140,391
For over 15 years now, they have been selling and renting a full line of USED equipment. Some of the used products sold by our company include: tractors, trailers, loaders backhoes, skid steers, lawn mowers, trenchers, tillers, aerators and a variety of lifts. The rental equipment includes the previously-mentioned items as well as carpet installation tools, floor maintenance equipment, pumps, compressors, jack hammers, plate compactors, jumping jacks, and more. They are a dealer for Modern Ag Equipment (small machines and equipment attachments), Hustler Mowers and Temco Trailers. They service their rental equipment, recondition our sales equipment and complete service/warranty work on the tractors and mowers that they have sold.
New equipment sales make up under 5% of our total sales. This number could be grown substantially with the addition of other new equipment lines. The bread and butter: About 80% of the revenue is obtained through the sale of USED equipment which is acquired mostly through auctions, trade-ins, and private party sales. The final 15%+ of revenue comes from rentals which have grown steadily each year.
Critical to Understand: The business holds up during recessions: Historically, to a great extent, it has been recession-proof. During this latest economic downturn, it held up relatively well. The customer base and market, overall, are NOT tied to construction and the ups and downs of building activity. The business primarily serves farmers, ranchers, large landowners and DIY homeowners not in the market for buying brand NEW equipment. This is why we are not subject to the ebb and flow of economic swings. It is critical to understand that our buyers realize how much the value of a brand new piece of equipment depreciates immediately after purchase and they prefer not to take that “hit”. Instead, they stretch their spending dollars by purchasing USED equipment and often times are able to buy MORE USED pieces rather than only one NEW item.
The margins between when we first buy equipment and then resell it is substantially higher, for us than for NEW equipment dealers. John Deere, CAT, Kabota dealers need to sell more to make the same net income because their margins are fixed and smaller. For instance, it is typical that we can buy a 3 year loader for say 40,000, service and rent it out for 3 years pulling in 20-30K in rental income and then resell that SAME piece for 52,000.
The customers need equipment but, they may not have the means or the desire to shell out $75,000 for a new unit, especially during tough times. USED equipment for us, is 2-3 times the profit margins that new equipment dealers earn on a sale. The niche business model has a very solid base that can easily be built upon.