| Consolidation Capital Corporation | |||
| Ticker: | BUYR | 1747 Pennsylvania Avenue, NW, Suite 900 | |
| Exchange: | NASDAQ-National Market | Washington, DC 20006 | |
| Industry: | Financial (SIC Code 6799) | (202) 955-5490 | |
| Type of Shares: | Common Shares | Filing Date: | 9/23/97 | |
| U.S. Shares: | 24,000,000 | Offer Date: | 11/25/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $20.00 | |
| Primary Shares: | 24,000,000 | Offer Price: | $20.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.40 | |
| Offering Amount: | $480,000,000 | Selling: | $0.84 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 29,411,765 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9571 |
| Issuer's Law Firm: | Morgan, Lewis & Bockius |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Auditor: | Price Waterhouse |
| Business Description |
| The company was founded to build consolidated enterprises with national market reach through the acquisition and integration of businesses in fragmented industries. The company will seek to leverage the experience and expertise of Mr. Ledecky and the company's management team to become the leading consolidator of business and consumer products and services companies in fragmented industries. In addition to the company's existing Senior Vice President, the executive management team is expected to consist of a President, Chief Financial Officer and General Counsel each of whom is expected to have significant acquisition experience. The company will benefit from its ability to deploy rapidly its significant financial resources ad to use its publicly traded stock as currency in selected acquisitions. Because the company will initially have significant cash reserves, the company's ability to acquire attractive companies is not likely to be constrained by the need to access the capital markets. Furthermore, the company believes that its corporate democracy principles will help it attract and acquire companies and will differentiate it from traditional consolidators. |
| Competition |
| The company expects to encounter competition from other entities having business objectives similar to those of the company. Many of these entities, including venture capital partnerships and corporations, other acquisition companies and funds, large industrial and financial institutions, small business investment companies and wealthy individuals are well established and have extensive experience in connection with identifying and effecting business combinations directly or through affiliates. Many of these competitors possess greater financial, human and other resources than the company and there can be no assurance that the company will have the ability to compete successfully. In addition, the industries in which the company may operate in the future may be highly competitive. There can be no assurances that the company's efforts to differentiate itself will prove to be successful or that the company ultimately will be able to compete effectively in the markets in which it operates in the future. |
| Business Plan |
| The company's goal is to become the leading consolidator of business and consumer products and services companies in fragmented industries. The company intends to acquire established local or regional businesses and combine and integrate them into an effective national organization. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund future acquisitions and general corporate purposes including working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Jonathan J. Ledecky | 100.00% | 15.00% |
| Officer Name | Title | Age |
| Jonathan J. Ledecky | Chairman | 39 |
| David Ledecky | Senior Vice President, Secretary, Treasurer and Director Nominee | 36 |