Company Overview
1847 Holdings LLC (OTCQB: EFSH) a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue and Principal of Lazard Freres Strategic Realty Investors. EFSH's investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, EFSH can consistently acquire "solid" businesses for reasonable multiples of cash flow and then deploys resources to strengthen the infrastructure and systems to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at considerably higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to EFSH's ability to pay regular and special dividends to shareholders.

1847 Holdings: Acquisitions and Spinoffs of Growing US-Based Businesses
Value Proposition
EFSH employs a unique public, private company holding platform that combines the attractive attributes of private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. Its only public-company comp, Compass Diversified Holding (NYSE: CODI), has a current market cap in excess of $1 billion and is up 295% since its 2006 IPO, compared to 185% for the S&P 500 and 124% for the Russell 2000 over the same period. EFSH seeks opportunities for growth and margin improvement of its subsidiary holdings through additional resources and implementation of return-driven metrics and accountability. The Company demonstrated its ability to execute this model with its acquisition and spinoff of 1847 Goedeker (NYSE: GOED). Acquired for a $7.1 million investment in April 2019, EFSH spun out GOED on the NYSE in July 2020, increasing the value of its holdings to $23.4 million (55% of the total enterprise value of $58.5 million at the time of the IPO). EFSH then followed through on its commitment to share its success with shareholders by completing a special dividend of its GOED shares in October 2020. Leveraging an expansive network of deal flow contacts in a niche of the private company arena often overlooked by investment banks and larger private equity funds, EFSH is ideally positioned to scale and manage its portfolio, repeating the success of GOED, and ultimately generating significant value for its shareholders.
Investment Highlights
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Strong management team with expansive deal flow network
- Led by founder and CEO Ellery W. Roberts, former Managing Director of SKM Growth Investors LP, a Dallas-based private equity fund focused on recapitalizations, buyouts, and growth capital in lower middle-market companies, where he managed $400M across two funds; previously Roberts was a principal at Lazard Freres & Co., where he was a senior team member involved in the investment of $2.4B+ of capital; and worked at Colony Capital, where he analyzed and executed transactions for a $625M private equity fund
- Managing Director Edward Tobin was previously Director of Global Emerging Markets (GEM), where for 15 years he managed Special Situations and Venture investing for GEM’s Partners Capital Fund
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Solid foundation with three operating subsidiaries and successful spinoff of fourth business (1847 Goedeker) onto NYSE in July 2020
- Stable, mature businesses with margin improvement and revenue growth opportunities
- Acquired 1847 Goedeker in April 2019 for a $7.1 million investment; spun out 15 months later on NYSE (GOED) with holdings valued at $23.4 million (55% of the total enterprise value at time of IPO)
- Trailing 12-month sales of 70M; third acquisition
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Acquisition strategy focused on value creation; robust pipeline
- Institutes return-driven metrics/accountability and add resources (personnel, processes, and/or technology) to drive growth
- Extensive deal network
- Strategically evaluate exit opportunities of subsidiaries to monetize successes
- Well positioned to repeat success of 1847 Goedeker (NYSE: GOED)
- Recently raised $5 million from hedge funds, family offices, and other institutional investors; plans to raise up to an additional $25 million
Contact Information:
RedChip.com | 1-800-REDCHIP (733-2447)
Important Notice the Regarding Regulation A Offering and Forward-Looking Statements
An offering statement regarding the offering described above has been filed with the SEC. The SEC has qualified that offering statement, which means that 1847 Holdings LLC may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement through this link.
Investing in an initial public offering like our Regulation A offering is subject to unique risks, tolerance for volatility, and potential loss of your investment, that investors should be aware of prior to making an investment decision. Please carefully review the risk factors contained in the offering circular for this offering. For more information about Regulation A offerings, including the unique risks associated with these types of offerings, please click on the SEC's Investor Alert.
Neither this document nor any of its content constitutes an offer to sell, solicitation of an offer to buy or a recommendation for any security by 1847 Holdings LLC or any third party. The content of this document is provided for general information purposes only and is not intended to solicit the purchase of securities or to be used as investment, legal or tax advice. A securities offering by 1847 Holdings LLC is only being made pursuant to the offering circular described above. The content of this document is qualified in its entirety by such offering circular. Prospective investors are urged to consult with their own, investment, legal and tax advisors prior to making any investment in 1847 Holdings LLC.
The information set forth in this document includes statements, estimates, projections with respect to our anticipated future performance and other forward-looking statements, which are subject to risks, uncertainties and assumptions. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “future” or “continue”, the negative of these terms and other comparable terminology. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Reform Act of 1995. These statements, estimates and projections are based upon various assumptions that we made concerning our anticipated results and industry trends, which may or may not occur. We are not making any representations as to the accuracy of these statements, estimates or projections. Our actual performance may be materially different from the statements, estimates or projections set forth below based upon a number of factors, including those contained in the Risk Factor section of the offering circular described above. We are under no duty to update any of these forward-looking statements to conform them to actual results or revised expectations.
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1847 Holdings (EFSH) is a client of RedChip Companies, Inc. EFSH agreed to pay RedChip Companies, Inc. a $8,500 monthly cash fee, beginning in November 2019, and 100,000 restricted common shares of EFSH stock for 12 months of RedChip investor awareness services.
Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services.
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