EFSH - From Divestments To Capital Raises Acquisition Holding Company 1847 Holdings Is Streamlining Business And Shoring Up Capital To Position Itself For Growth In 2024 | Benzinga
1847 Holdings LLC (AMEX:EFSH), a diversified acquisition holding company that acquires small businesses, is shoring up capital to increase shareholder value and position itself to grow and expand the portfolio of companies it owns.
1847 Holdings isn't your traditional private equity firm that creates funds comprising collective investor capital. Instead, it buys small businesses with about $5 million of EBITDA and then deploys resources to strengthen the enterprise and improve operations. All that work can lead to a sale or IPO, often at a much higher valuation than 1847 Holdings paid. In other instances 1847 Holdings will hold onto the asset, contributing to the company's ability to pay regular and special dividends to investors. It also seems to know when to cut its losses and isn't afraid to divest a business if it means it will improve cash flow and margins.
Know When To Hold Em'
That was the case with the recent divestment of 1847 Asien Inc., the subsidiary that provides a wide variety of appliance services. 1847 Holdings said the move will reduce the PE firm's expenses by around $10.9 million a year and should have a positive impact ...