docproshred - Sunbelt Business Brokers
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proshred - Sunbelt Business Brokers
Top 10 Reasons “Why candidates get excited about PROSHRED!” (1) Growth Industry Industry growth 10-15% per annum Two key industry drivers …. (1) Identity Theft Legislative environment – Federal & State Levels » HIPPA/ HITECH » FACTA/Red Flag Rules » GLBA » etc. (2) Environment Reuse & recycle Many USA businesses do not have a vendor in place to meet their shredding and recycling requirements Highly fragmented industry Major competitors control approximately a 35% share of market Significant opportunity with “Small and Medium Sized Enterprises” 2 (2) Recession Resistant Business Model Continued growth since Q3 2008 when economic downturn commenced 3 (3) Non-Seasonal Business Quarterly revenues continue to climb as a result of recurring revenue streams 4 (4) Multiple Revenue Streams The majority of PROSHRED® ‘s revenue is “regularly scheduled and recurring” System Sales Mix 120% 100% 80% 60% 25% 26% 15% 29% 27% 25% 40% 20% 49% 56% 48% 3Q08 3Q09 3Q10 Unscheduled Recycling 0% Scheduled 5 (5) B2B Business Hours of operation Typically Monday to Friday … “9-5” Limited evening and weekend work Service all industry sectors Government, Health Care, Financial, Professional, Retail, etc. Growing demand from the residential customers New opportunities hard drive, electronic media & other proprietary materials Our focus is “SME” Short sales cycle Strong margins No significant Accounts Receivable issues Check, credit card, auto payment, etc. System Average Scheduled Revenue $128 per customer per month (2009 FDD Item 19) 6 (6) Customer Loyalty Extremely high customer retention Deliver “Best in Class Service” Utilize State-of- the- art trucks, equipment, software Superior training and mentoring programs ISO 9001 2008 and NAID AAA certifications National and Regional Account opportunities Industry Pioneer and Innovator “Nationally Operated but Locally Owned” – Franchisor - national and regional support programs – Franchisee - responsive and flexible to customers local needs Community Shredding Events 7 (7) Large Exclusive Territories PROSHRED® awards Multiple Unit Franchises e.g. entire Metropolitan Statistical Areas MSA Seattle, WA – 3.55 Territory Units i.e.“3.55 franchises under the control of one owner” Territories by City/County Seattle # 1 2 3 4 5 6 State Washington Washington Washington Washington Washington Washinton TOTAL City Seattle Bremerton Shelton Tacoma Everett Olympia County KING KITSAP MASON PIERCE SNOHOMISH THURSTON Franchise Fee Per Territory Unit Initial Franchise Fee Payable Per FDD 2011 Economic Stimulus Discount (30%) Adjusted Initial Franchise Fee Payable 8 Population 1,507,319 189,731 38,341 586,203 465,642 161,238 2,948,474 Business 10+ 14,731 1,208 216 3,845 3,450 1,389 24,839 35,000 124,250 37,275 86,975 Territories 7000 2.10 0.17 0.03 0.55 0.49 0.20 3.55 (8) Scalable Business Model Margins and profitability increase with sales volume and route density System Average Contribution margin 70% (2009 FDD item 19) Manageable Fixed Overheads Lease cost effective Industrial commercial office space Limited number of employees Part-time employees Nominal inventories Start with one truck Lease or finance additional trucks and equipment 9 (9) Forgiving Customer Service Offering Readily “reschedule” regularly scheduled accounts Mechanical repairs or breakdowns Holidays Additional income opportunities Lucrative “unscheduled” service opportunity 10 (10) Resale Value Aggressive multiples Brand value High volume High margin Recurring revenue stream & predictable cash flow 11 The Bottom line …. FDD “Item 19” Disclosure For locations in operation for 36 months or more with 3 or more shredding trucks (See FDD item 19 for further details). 12 Year 2009 Average Revenue $970,000 Average Contribution Margin 72.7% Average EBITDA 27.1% The Perfect Franchisee White Collar Business Executive Sales & marketing abilities Management & leadership skills High Net Worth $750,00 to $1,000,000+ net worth $250,000 to $300,000+ liquid Typically our franchisees “C” Level Executives Well educated & traveled Entrepreneurial High achievers Good communicators Well connected in their communities Successful track records 13 Next Steps 14 Available Markets PROSHRED USA STRATEGIC DEVELOPMENT PLAN 15 # City Status # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Albany, NY Arlington, VA Atlanta, GA Austin, TX Baltimore, MA Birmingham, AL Boston, MA Buffalo, NY Charlotte, NC Chicago North & South, IL Cincinnati, OH Cleveland, OH Dallas - Fort Worth, TX Denver, CO Detroit, MI Hartford, CT Houston, TX Indianapolis, IN Jacksonville, FL Kansas City, KS Las Vegas, NV Long Island, NY Los Angeles, CA Louisville, KT Memphis, TN Miami-Fort Lauderdale Milwaukee, WI Minneapolis-St.Paul, MN Nashville, TN New Orleans, LA Sold Sold Available Available Sold Available Available Available Sold 1/2 Sold Available Available Available Sold Available Sold Available Sold Available Sold Available Sold Available Available Available Sold Sold Available Available Available 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 City New York, NY Newark, NJ Oakland, CA Oklahoma City, OK Omaha, NE Orange County, CA Orlando, FL Philadelphia, PA Phoeonix, AZ Pittsburgh, PA Portland, OR Providence, RI Raleigh, NC Richmond, VA Rochester, NY Sacramento, CA Salt Lake City, UT San Antonio, TX San Bernardino, CA San Diego, CA San Francisco, CA San Jose, CA Seattle, WA Springfield, MA St. Louis, MO Syracuse, NY Tampa Bay Washington, DC Virginia Beach, VA Columbus, OH Staus Sold Available Available Available Available Sold Available Sold Available Available Available Available Sold Available Available Available Available Available Available Sold Available Available Available Sold Available Sold Sold Sold Available Available Contact Information PLEASE DIRECT ALL FRANCHISE INQUIRES AND QUESTIONS TO …. John Prittie, M.B.A President Proshred Franchising Corp. 6790 Century Ave., Suite 200 Mississauga, Ontario, Canada, L5N 2V8 O: 416-204-0071 C: 416-984-7022 F: 905-812-9448 [email protected] 16 Question & Answers 17
