IBH PRESENTS COMPANY Y

A 30-year old membership marketing company, operating 10 social clubs in 10 cities across the USA. The company organizes and hosts 30 to 40 events for its members each month in each city. Members have access to the company’s events calendar and RSVP to attend their choice of events. They can attend as many events as they choose each month. Members join to meet new people, have fun, travel and socialize in a fun, safe environment with thousands of other like-minded members. Members simply sign-up, show-up and enjoy.

Members say the club is like having a 24/7 personal social director to enhance their social life and maximize the enjoyment of their free time. The Company, launched in 1987, has a history of success in the membership marketing sector, steady revenue performance and a proven business plan.

ACTIVE ADULTS WHO LOVE FUN

who are we              targeting?

Currently, the Company targets active adults, 21 years of age and older, the primary demographic is 25 to

45. The members’ average age is 36 years with females representing 58% of membership and males 42%.

Nationally, the current target demographic represents 45% of the U.S. adult population. Growth initiatives include a very aggressive 8-point plan described below.

Average Age is 25 to 45

20

30

40

50

60

58%

42%

target demographic represents 45% of the U.S. adult population
COMPETITION
"leaders never look over their shoulders when blazing trails"

The Company has a unique offering in that it provides access to a multitude of organized activities

and events. A related, yet not directly competitive industry segment, would include other membership marketing companies such as golf clubs, country clubs, travel clubs, fitness clubs, etc., which all vie for some of the same social spending dollars. The total competitive market available to Company Y is significant: the membership marketing sector represents a 50B market, with country clubs representing a 23B market segment, and Social Clubs representing a 16B market segment. The Company’s competitive advantage is that it is a very affordable club offering activities and events for everyone.

We call it the all-in-one-club. See sample list of activities and events below.

JUICY STATS

Annual Revenues of 10mm+ and 700k in EBITDA projected for 2017

The Company enrolls an average of 150 new members per week

1,200 average annual revenue per member

8,740 Members currently; expected to grow to 12,245 by the end of year 1

The current management team and key personnel in each city will remain

Members volunteer to help event coordinators host events

The Company is debt-free

Our management team will execute an aggressive new 8-point growth plan

Historical growth has been 100% self-funded

IMPORTANT! All monies generated from events and activities go directly to charity!

FINANCIAL QUICK READ

THE OPPORTUNITY

Experienced management team is seeking an investment of $3.5mm, of which $3mm will be utilized for the acquisition of 100% of Company Y and the remaining $500k will be used for working capital to implement the management team’s 8-point growth plan initiatives, including geographic expansion to new cities, additional corporate personnel and enhanced infrastructure. The amount of working capital invested will determine the

speed at which the company can scale. The ultimate goal is to increase revenue to $120mm and EBITDA to $15mm by the end of year 4, creating a very predictable, recurring cash flow business

INVESTMENT HIGHLIGHTS

Nominal investment to acquire a $10mm recurring revenue stream

Low execution risk, 30-year historical results deliver proof of concept

Minimal operational risk. Company Founder to join our experienced management team

Significant EBITDA upside potential:

   > Geographic expansion to 30 new cities over 3-years, dependent on growth capital raised

   > Expanded membership enrollment in new market segments

   > Benefits of scale and improved efficiencies:

        - Reduce legacy advertising costs

        - Reduce operating expenses

        - Reduce attrition

Opportunity for a “zero” cash-out-of-pocket investment utilizing a sophisticated financing structure

Multiple options for an exit:

Hold to benefit from strong recurring cash flows

Grow and seek a private sale

Pubco

5 YEAR FINANCIAL PRO FORMA

The Company’s financials indicate a strong, predicable revenue stream. The 5-year projections are based upon market research, an in-depth knowledge of the membership marketing sector and a proven history of successfully scaling existing operating companies.

Growth initiatives considered in the projections include:

30 new cities will be launched over the next 36 months depending on growth capital raised:

      • Each new city launch requires just 100,000 in growth capital

      • Each new city launch takes just 6-months to reach profitability

      • Each new city launch requires just 614 members to reach the breakeven point

      • Each new city will contribute an additional 1.5mm in revenue within 24-months

      • Target market expansion to reach a new demographic

      • Cause-based marketing strategy through partnerships with local and national children’s charities

      • Retention initiatives to increase the average life of a member beyond the current 15-month average

      • Referral marketing strategy to incentivize current members to refer new members

      • Reciprocal club strategy to add significant value to existing club memberships

      • Significant technological improvements to streamline new member enrollment

      • Current and relevant marketing strategies to augment existing radio advertising strategies

 1. Between mid 2013 to mid 2014, the Company cut 4 middle management employees, which were not contributing to the overall revenue and effi ciency of the company. These employees made between $70k and $80k per year. These cuts had no negative impact on the Company. Conversely, the cuts allowed the company to (a) be more effi cient; and (b) put more money on the bottom line.

2. During the same time the company invested a lot of money into new systems development and new web development projects, which has made the company much more effi cient, thus allowing it to (in the long term) increase revenue and decrease costs. However, said investment (in the short term) increased expenses and reduced EBITDA.

3. Between mid 2015 to mid 2016, the Company restructured its entire accounting department, which cut costs and dramatically increased the collection of the Company’s receivables, thus significantly increasing revenue.

4. In late 2015, the Company cut its upper management sales director and the Company’s President assumed that role and those responsibilities, which decreased expenses and ultimately increased sales and efficiencies.

5. In late 2015, the Company restructured its membership pricing, which lowered the cost of membership, which in turn, increased sales and profits due to the new lower costs for members to join or re-join the club.

6. In late 2014 the Company hired a media consultant, which helped the Company to reduce its advertising & marketing spend by 10% by eliminating the duplication of advertising in each city. The reduced spend did not decrease the amount of leads and sales, so the savings went directly to the bottom line.

FINANCIAL NOTES
 

COMPANY Y SAMPLE ACTIVITY & EVENTS

30+ Per Month  •  80% Of All Events Are Free  •  Others Are At Special Group Rates  •  All Are For Charity

SPORTSParticipatory Games & Tournaments

Flag Football

Softball

Volleyball

Tennis

Golf

Whirlyball

Rollerblading, Running, Jogging, etc.

Billiards Darts, Bowling

Frisbee Golf & Ultimate Frisbee

SPORTSSpectator

Mavericks watching parties at the game or our clubhouse

Stars watching parties at the gane or our clubhouse

Cowboys watching parties at the gane or our clubhouse

Rangers watching parties at the gane or our clubhouse

Olympics, Tennis, Golf, Boxing, Soccer, etc.

ADVENTURES

Hot Air Ballooning

Sky-Diving

Hang Gliding

Scuba Diving

Bungee Jumping

White Water Rafting

Rock Climbing, etc.

Tubing Down River

OUTDOOR ACTIVITIES 

Camping

Fishing

Hunting

Sailing

Hiking

Boating, Waterskiing, Waverunners

Tubing

Rafting, Canoeing, Kayaking

Snow Skiing

Mountain Biking

Skeet Shooting, Target Shooting, Archery

House Boat Parties

Horseback Riding

Horse Racing Track Parties

MISC EVENTS

Scavenger Hunts

Limo Scavenger Hunts

Paint Ball

Bus Parties to Local Clubs & Events

Pub Crawls

Theme Park Parties: Six Flags, Wet N' Wild, etc.

Comedy CLub Parties

Funseekers' Night at Local Movie Theaters

Music Events & Concerts

Festivals

Funseekers' Nights at Local Clubs

Karaoke

Cultural Events, Ballet, Symphony, Opera

BBQ's, Picnics

Waine Tasting Events, Beer Tasting Events

Las Vegas Style Gambling Nights

Poker Tournaments

Board Games, Card Games, Dominos & Tournaments

Local River & Lake Cruises

Deep Sea Fishing Trips

Funseekers' Nights at Local Restaurants

Murder Mystery Dinners

Charity Fundraisers

membership Drives

Holiday Gala Events, Christmas, New Years, etc.

TRAVEL 

Local Weekend Travel Trips

3 Night / 4 Days Vacations to US & Mexico Destinations

3 Night / 4 Day Cruises to US & Mexico Destinations

4 Night / 5 Days Vacations in the US, Mexico & The Caribbean

6 Night / 7 Day Cruises to the US, Mexico & The Caribbean

EDUCATIONAL & INFORMATIONAL SEMINARS

Health & Wellness

Relationships

Taxes - Beginner, Intermediate & Advanced Classes

Financial Planning - Beginner, Intermediate & Advanced Classes

Self Improvement, Personal Development

Business - Beginner, Intermediate & Advanced Classes

Sales - Beginner, Intermediate & Advanced Classes

Advertising & Marketing - Beginner, Intermediate & Advanced Classes

Giving Back, Making a Difference, Leaving a Legacy

Members Simply Sign-Up, Show Up and Have Fun! 

Company Y Makes No Money On Activities & Events  •  All Proceeds Go To Charity

Download the above presentation in PDF form!