Investor Presentation 12-22-12

INVESTOR PRESENTATION
The Purpose
The purpose of this plan is to provide investors with
the information necessary to evaluate the scope and
future growth of 123Employee, Inc. as it purchases &
completely merges with SupportSave Solutions, Inc.
(Ticker: SSVE) to expand its operations and diversify its
customer base. Additionally, the plan will serve as a
guide for management to measure future goals and
performance.
To achieve the company’s objectives, 123Employee is
seeking $4,500,000 in total funding. The funding will
be used to purchase the public company SupportSave
Solutions, Inc. (a.ka. SupportSave). $700,000 of
company's cash on hand will be used to finance total
purchase price of $4.5MM. The investment risk is
minimal based on the management experience of
Daven Michaels and industry growth rates. The
123Employee’s financial model of the acquired
company shows consistent growth for the brand over
the next five years. By year five, plans call for the
Company to achieve $33.86MM in annual gross
revenue with a net profit of $7.3MM or 21.6%.
Introduction
123Employee (also referred to as “the Company”) is a
leader in overseas outsourcing. The company employs
a staff of hundreds of innovative marketing and
support agents. The company has seen major success
in the market place by focusing on small to medium
businesses. 123Employee would like to expand within
the marketplace by acquiring and merging with
SupportSave, who specializes in providing outsourcing
services to large corporations and business entities.
Founded by Daven Michaels, in 2009, 123Employee
has become one of the largest providers of
outsourcing services to small businesses. The
company offers such services as: voice based, call
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123Employee, Inc.
center solutions, help desk, client support, sales and
administrative
business
process
outsourcing.
According to Icon Group International, Inc. in a World
BPO Outsourcing Report 2012 the U.S. and Caribbean
Outsourcing and Offshore
Service Industry produces
more than $108.6 billion
annually.
SupportSave’s
revenue and profits have
exploded over the last few
years; reaching almost $4 million in annual revenue
with 52 major customers. They service Fortune 1000
companies by using industry standard operations,
which bodes well for a smooth and successful
transition to 123Employee stewardship and
ownership.
The Opportunity
The market is in need of a service line such as
123Employee. The current landscape is filled with
organizations that provide a poor experience for
customers. With this industry projected to have
strong growth trends over the course of the next
decade, the need for the level of service Daven
Michaels’ organization has obtained will be coveted
among large organizations.
Globalization (the need for outsourcing) will increase
as large operators look to serve the needs of
international clients. Large operators will continue
making
acquisitions
in
emerging markets, niche
industries and companies
that provide value-added
services. Mid-size operators
will
continue
to
be
Copyright© - 2012 – 123Employee, Inc. - All Rights Reserved - CONFIDENTIAL
financially squeezed and will merge or be taken over
by larger firms. Consequently, industry firm numbers
are expected to increase at an annualized rate of 2.0%
to 80,166 additional agent positions in the five years
to 2017.
Financial Highlights
The following table and graph illustrate the financial
goals of 123Employee during the next five years. The
financials are explained in detail throughout the
duration of the plan:
Financial Highlights
(Fiscal 2012)
123Employee & SupportSave: An ideal acquisition
SupportSave is an ideal acquisition for
123Employee. Both companies started in
the early 2000’s with a focus on small to medium sized
companies utilizing similar operations and instituting
industry standards. SupportSave evolved into a
company that focused on the needs of large
corporations, while 123Employee focused on its core
values and became one of the most trusted brands in
marketing and outsourcing services under the
knowledge and experience of Daven Michaels.
The success of any organization is a true reflection of
its leader. Daven Michaels has become a renowned
expert, author, and speaker in the outsourcing
industry. He has the knowledge to make this
acquisition a success and reap high rates of return for
investors. Mr. Michaels is a 100% hands on leader. He
does not give orders from a top penthouse office but
rather he jumps into the thick of the operations to
ensure things go smoothly. Due to Mr. Michaels’
management style, client retention skills, marketing
and public persona management believes they will be
able to increase the stock value of the public entity
from $0.15 a share to $1.00 a share within the first 12
months after acquisition.
Daven Michaels is living proof of the American dream.
An entrepreneur since age 15,
Michaels expertise includes roles
as a best-selling author, music and
television producer, speaker, and
founder of 123Employee. His
success comes from understanding that in the era of
internet business you need never be “the little guy”.
Michaels advocates for entrepreneurs, small-business
owners and large corporations showing them how
they can flourish by using communications technology
to give them a competitive advantage. At the heart of
123Employee is the conviction that good business
means business that is good for people: good for
entrepreneurs, good for outsourced employees, and
ultimately good for their customers.
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Year 2
Year 3
Year 4
Year 5
Revenue
$
6,600,000
$
10,032,000
$
15,048,000
$
22,572,000
$
Direct Costs
$
1,739,000
$
2,643,280
$
3,964,920
$
5,947,380
$
8,921,075
Gross Margin
$
4,861,000
$
7,388,720
$
11,083,080
$
16,624,620
$
24,936,925
74%
74%
74%
74%
33,858,000
74%
Total Operating Expenses
$
3,710,846
$
5,408,988
$
7,621,500
$
10,931,688
$
16,388,232
Operating Profit
$
1,150,154
$
1,979,732
$
3,461,580
$
5,692,932
$
8,548,693
EBITDA
$
1,450,154
$
2,279,732
$
3,761,580
$
5,992,932
$
8,848,693
Revenue
(Fiscal 2012)
$
6,600,000
$
Year 2
10,032,000
$
Year 3
15,048,000
$
Year 4
22,572,000
$
Year 5
33,858,000
Cash
$
$
2,780,415
$
6,022,759
$
11,161,749
$
18,728,138
17%
Year over Year Revenue Grow th
97,643
20%
52%
23%
50%
25%
50%
25%
50%
History of SupportSave
SupportSave was founded in November 2004 to meet
the needs of Small and Mid-Sized Businesses, with the
belief that the trend of offshore outsourcing should
not only benefit Fortune 1000 companies, but all
businesses that aspire to become more competitive in
their respective industries. They set out to create a
business model that, for the first time, made
outsourcing affordable to businesses of any size, and
they have successfully done just that. SupportSave
identified the Philippines as the most suitable
destination for its close cultural affinity with the US,
availability of high-quality English speaking resources
with minimal accents, and a deep understanding of
western culture.
In July 2007, SupportSave Solutions, Inc.'s registration
statement was declared effective by the US Securities
and Exchange Commission, making SupportSave a
publicly traded company. They now trade on the
NASDAQ under the ticker "SSVE".
Today, SupportSave provides offshore outsourcing
services, from their delivery centers in the Philippines.
Their main focus is Fortune 1000 companies.
Copyright© - 2012 – 123Employee, Inc. - All Rights Reserved - CONFIDENTIAL
Goals
Purchase SupportSave and
change
the
brand
to
123Employee by offering
SupportSave $4.5 million plus
15% stock with a non-dilution
clause
Completely merge with SupportSave creating
one public company and brand under
123Employee
Developing a diverse service offering that will
fill any customer need small or large
Post-Acquisition/Merger Clients Include
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.
AER Collections
Alarcon Law Group
(Attorney Network)
American
Executive
Marketing Group, LLC
Awarenesstech
BGP Inc.
Bluewave Advisors
Boston Pedorthic
Box.net
Bravo Sports
Callture Inc.
CRM ASP
Curtin Law
Dayo Medical
Deltek
Information
Solutions
DOCUSIGN
Flow
Consulting
Services, LLC
Global Optical Solutions
Job Fox
JobsByFax.com
Keller Williams Realty
Partners
Koba Holdings
Kollar Wealth Advisors,
LLC
Mader Law Group
MantraSys
MPower Energy LLC
Net Enforcers
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27. New Ashley Stewart, Inc
28. Office Depot, Inc
29. Pat Hiban Real Estate
Group
30. Plush Marketing
31. Quality Stocks
32. Quest Nutrition
33. Quick Cash
34. RC Factory Outlet
35. RJ Daley & Daley PLLC
(Luxury Valley Home
36. Rug Doctor
37. SCD, LLC
38. Schlee & Stillman
39. Stillman Law Office
40. Tello
41. The
Tunstall
Organization
42. The Vitamin Creek
43. The Von Group (Marcus
Millichap)
44. Time Razor
45. Times in America
46. Tulip - Loan XM
47. University Wafer Inc.
48. US Auto Parts Network,
Inc.
49. Vetderm
50. VOfficeware Inc.
51. Worlds Wildest Police
Videos
52. Xfactor360
Exit Strategy
After careful consideration, 123Employee has
developed the following scenarios for the investors
and management to recover their investments.
Main Scenario
123Employee merges with another company to
expand its market reach and development capabilities.
Potential merger partners include companies that can
offer a more diversified market reach or provide
expanded resources for product or service research
123Employee’s management
and development.
would maintain majority control of the Company and
combine its operational and sales efforts with its
merger partner.
Similar Acquisition and Mergers:
Conclusion
123Employee may entertain a merger scenario by a
major company. The Company will entertain any
scenarios that could be lucrative for the Company and
investors. The final decision will depend on market
forces and the wishes of the Company’s owners and
investors.
Unique Service
123Employee offers a unique
solution to businesses from a
value perspective, as the
company focuses a lot of expenditure around
infrastructure, technology and labor management.
These are the three areas of significant spending and
overgenerous investment for most large serviceproviders
including
multi-national
consulting
companies and mega BPOs, thus resulting in passing
the embedded cost to the clients through pricing
matrix. The company’s value-engineering in the
aforementioned areas positions them uniquely to
manage client business processes.
123Employee lowers all such costs by diligently
planning and executing all client projects and
relentlessly focusing on smart-spending.
Copyright© - 2012 – 123Employee, Inc. - All Rights Reserved - CONFIDENTIAL