Project Edison

Background:

The Company (code name “Edison”), based in the Southeastern USA, is a leading full-service lighting design and installation provider that has experienced massive growth in the past two years since its founding, and is experiencing continued impressive growth in 2018. Edison completed 44 LED lighting projects in 2017 and these projects have driven significant cost savings to the Company’s customers in the range of 60-75% annually. The customers also benefit from longer life spans on the LED bulbs, a substantially lower carbon footprint and in some cases meaningful rebates from utilities. Edison provides a full complement of lighting services: audit of current energy usage; ROI analysis on an upgrade to LED lighting, design of a new lighting system and installation of best-in-breed lighting using high quality professionals.

The market for LED lighting is large and growing. In 2017 the total LED lighting market (including product sales and installation services) was $29.5 billion and is expected to grow at a 13% compound annual rate to $54.3 billion by 2022. Lighting represents about 40% of the energy spend in a traditional office building, so the benefits of improved lighting are enormous. The factors driving the overall market growth are: high costs of legacy lighting, technological maturity and acceptance of LED lighting, manufacturing efficiencies and competition driving down product costs, greater energy efficiency and environmental benefits, and government influence including mandates and rebates.

Edison’s executive leaders came out of the telecom industry where they established strong relationships with Master Agents that have thousands of Sub-Agents generating leads for telecom providers. Edison has signed partnership agreements with several of these Master Agents to also provide leads for lighting upgrades to their industry customers. These Agents have already had a significant positive impact on Edison’s revenue growth as 70% of new business leads came through this channel. This Agent channel will enable Edison to continue to grow at a very high rate for the foreseeable future.

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Key Investment Highlights

  • Full-service end-to-end service offering in an industry that typically
    requires multiple entities to provide these services
  • Highly skilled base of 40 employees and dedicated electricians
    nationwide
  • Unique nationwide sales coverage through a partner model with more
    than 250 sales agents generating leads
  • Operational metric in place to guarantee high quality and efficient
    service delivery to customers
  • Tremendous revenue growth combined with extremely strong gross
    and EBITDA margins

Revenue & EBITDA Growth

LED Lighting Market Growth

  • Market demand for energy efficiency will continue to grow at double
    digit CAGR for the projected future
  • Edison’s established sale agent network has thousands of agents still
    to be educated on the benefits of LED lighting for their customers
  • Growth capital could provide Edison with the ability to establish
    relationships with Asian lighting manufacturers to significantly reduce
    costs and improve margins
  • Additional products (such as lighting controls) or services (lighting-as-a-service)
    could be offered by the Company

LED Lighting Market Growth