OAF - EFP Investor Deck (Dec 2010) by bgreenwald


									               EFP Business Model

     Public School                              EFP brings corporate
                                                sponsorships to U.S.
       Districts                                public school districts                           Companies


“Our financial situation is                                                                  Consumer goods and
 absolutely catastrophic.”                                                                   services companies
   - Jim Notter                                                                              searching for new ways
     Broward County School District)
                                                                                             to reach K-12 students
                                                                                             and their parents.

                                       Education Funding Partners, Proprietary Information                            2
         An Experienced Team
•   Mickey Freeman, CEO
     –   President, Outward Bound Wilderness; Chief Operating Officer, Outward Bound USA;
         President, Schoolpop; Sprint Corp.
     –   Harvard Business School, Chairman AXL Academy (public charter school)

•   Brad Greenwald, Chairman and Founder
     –   DLF Capital CEO, Time Warner, WildBlue Communications (VP Sales & Mktg)
     –   Harvard Business School, DU Exec MBA Professor

•   Lynne Cole, Director of School Programs
     –   First Hour Director (public schools sponsorship) , Imagitas, AOL Time Warner

Scott Keller, Advisory Board
     Imagitas VP of Sales, First Hour President (public schools sponsorship)

Jim Christian, Advisory Board
     Anschutz Investments Managing Director, Dillon Read & Co., Bankers Trust

                             Education Funding Partners, Proprietary Information            3
A Large, Growth Market

                       2015                                      Public Schools
 Public School Students (K-12)                                            71.5m
 Sponsorship Fees/Student/Yr                                               $8.62
 (assumes 60% of current actuals)

 Sponsorship Market (2015)                                                $493m    EFP estimates
 (assumes 80% of schools participate)                                              2010 sponsorship
                                                                                   market: $20m

 Sponsorship Agency Market                                                 $99m
 @ 20% commission

            EFP forecasted revenue of $11.1 million
                     = 11% market share
                         Education Funding Partners, Proprietary Information                          4
                Receptive School Districts
•   School districts very receptive to corporate sponsorships
     –   Unprecedented budget cuts leading to this channel opportunity nationwide
     –   EFP concept represents “found money”
     –   EFP has created word-of-mouth buzz among large School Districts

•   Sales cycle (as expected) takes 6-9 months:
     –   Barriers to sale: control over sponsors/process, first mover trepidation
     –   Most require Advertising Policy       RFP         Contract process
     –   Only 1 large district already under contract (L.A. Unified)

•   EFP 5.7m student School District pipeline is very strong:
    Targets are largest 100 Districts (50,000+ students) (+ “bolt on” neighborhood districts)
                                                    RFP Forthcoming,
                Active                             In-Person Meetings                  Contract/
                                                        Complete                       RFP Pending
                     3.7m                                 1.5m                                0.5m    National
                  Students                              Students                           Students   Footprint

                                     Education Funding Partners, Proprietary Information                          5
               EFP Advertising Rights
                                                                                        Schools     Middle Schools   High Schools
•   Venue Rights                                          Athletic Facilities
     –   Multi-year                                       Cafeterias
     –   Exclusive to EFP                                 Auditoriums
     –   20% EFP fee                                      Other Venues
           •   plus 5.0% activation fee
               (first year only)                          Rights
                                                          Social Networking
•   Advertising                                           Faculty / Staff

     –   Naming rights
     –   Billboard/Advertising rights
     –   Social Media
     –   Other/Merchandising rights

•   Sponsors
     – 100 sponsors are pre-approved in
       contracting process
     – School has veto rights on others
                                      Education Funding Partners, Proprietary Information                                           6
 Target Companies

          Local Companies

Example Fortune 1000 “Student-Friendly” Consumer Brands

               Education Funding Partners, Proprietary Information   7
           School Competition

For School Rights                                        EFP Competitive Advantage
1. Local
                                                         Why EFP?
   –   Premiere Partners                                           • National scale brings bigger,
   –   Home Team Sports                                            better sponsors
   –   Local ad or marketing agencies
   –   Internal District Sales                                     • School district-only focus

                                                                   • First mover advantage
2. Single Tactic-Focused                                                 - get first wave of schools
   – School bus ads                                                      - credibility for second wave
   – Website ads
                                                                   • Multi-year, exclusive contracts
   – Locker wraps

    EFP targeting 6m public school students under contract by 2015
                             (out of 71m)
                            Education Funding Partners, Proprietary Information                          8
        Sponsor Competition

For Sponsors (Advertisers)                                Competitive Advantage:
• Current media
                                                               Why EFP?
• Existing branding and
                                                                    –      Targeted
   sponsorship initiatives
                                                                    –      Clutter-free
                                                                    –      New channel
                                                                    –      Great P.R. (helps schools)
                                                                    –      Impact of naming rights
                                                                    –      Efficiency due to multi-
                                                                           district footprint

                     Education Funding Partners, Proprietary Information                                9
                    Timeline – Projected Ramp Up
                             2010                                            2011
                              4Q         1Q                   2Q                 3Q                   4Q      2011       2012

School District Contracts          1      5                       12               18                  20       20        65

Students Contracted (m)       0.01      0.4                    0.9                1.2                 1.3      1.3        2.9

Sponsors Contracted            -          -                    1                     6                 13      13         34
          - Local              -          -                    -                     4                  8       8         25
          - National           -          -                    1                     2                  5       5          9
Sponsorship Revenue
           - Gross            $0        $0                $1.6m                 $1.5m                $1.0m    $4.1       $17.3
           - Net (EFP)        $0        $0                $0.4m                 $0.3m                $0.3m    $1.0       $ 3.7

Key Hires                     VP        Ad                   Ad                Operations
                             Sales     Sales                Sales              Director

CashFlow                    $(32)k*    $(179)k              $110k                 $(36)k            $(142)k    $(279)k   $1,041

  * Dec only
                            Cash Trough Occurs May 2011 = $(384)k cum
                                              Education Funding Partners, Proprietary Information                                 10
              EFP Projected 5 Yr Financials

                 2011           2012                         2013             2014   2015
Students         1.3m          2.9m                          4.8m             5.6m   6.0m

                        Education Funding Partners, Proprietary Information                 11

• Strategic Acquisition
   – Media Company (e.g. Clear Channel)
   – Agent Company (e.g. IMG)
   – Other
• Cashflowing

              Sale Scenario
            $5.8m EBITDA (2015)
                @ 6x multiple
                = $35 million
           Education Funding Partners, Proprietary Information   12
Investment Opportunity

• Education Funding Partners is an LLC
   – Funded to date by Founder

• Raising $500k in equity
   – Angel investors targeted
   – $25k minimum investment
   – Can break escrow @ $400k

• $2.0m pre-money valuation
   – $100k buys 4.2% of company (@ $400k raise)

              Education Funding Partners, Proprietary Information   13
Shameless Plug


      Education Funding Partners, Proprietary Information   14
This document presents certain information with respect to the projected financial
performance of the Company. These financial forecasts include a number of
specific assumptions. Such forecasts are based on a number of estimates and
assumptions made exclusively by the Company and are inherently subject to
significant business, economic, and competitive uncertainties, risks and
contingencies, many of which are unforeseeable or beyond the control of the
Company. There can be no assurance that the forecasts will be realized. Actual
results may vary significantly from those shown, and such differences may be
materially adverse. Under no circumstances should such information be construed
as a representation or prediction that the Company will or may be likely to achieve
particular results. Each prospective investor must make its own evaluation of the
merits and risks of an investment in the Offering and is cautioned not to place
undue reliance on this information. The forecasts have not been prepared with a
view toward complying with the published guidelines of the Securities and
Exchange Commission or the American Institute of Certified Public Accountants
regarding projections or with generally accepted accounting principles.

                            Education Funding Partners, Proprietary Information       15

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