Artfest International, Inc (fka ARTS)

[EDWARD STEVENSON]

The acquisition of Charity Sports Distributer.

When the letter of intent to acquire this company was initially issued, it was reported that CSD (Charity Sports Distributer) had:

"recorded revenues in calendar year 2008 of $3.3 million."

In a recent update, the company reported this deal to be in it's final stages:

"Standing to the relayed acquisition of Charity Sports Distributor, Inc. , a Texas -based custom framing company specializing in the design, production, and distribution of authentic framed autographed sports and entertainment collectibles and art pieces, has progressed to the point where management finds themselves in the late stages of finalizing the deal."

Consequently, one investor wonders, who exactly CSD is and what it is that they will be bringing Artfest as a "wholly owned subsidiary", besides a substantial revenue stream (as stated above) on top of theirs?

Well the first measure involved locating their website and browsing through their unique offerings: http://www.csdsportsframing.com/

One very interesting dynamic marketing strategy that they implement is something that they call "Home Game Auction".
A little on this system is jotted down (below).

Home Game Auction

Home Game Auction, a proven and dynamic program, captures a sense of urgency that regular storefronts can't. Visitors to a storefront look at your memorabilia, enjoy it, and then walk away. Selling memorabilia in silent fund raising auctions during your game creates great urgency and excitement, leading to increased sales. Watch potential winners protect their targeted prize before the auction closes. With Home Game Auction, you'll see your sales climb higher than you thought possible.
http://www.csdsportsframing.com/charity_fund.asp

***This unique marketing strategy has obviously proved sufficient and successful to this company. Artfest is in the late stages of acquiring this company, again, as a "wholly owned subsidiary". That would mean CSD's marketing tactics, ie. silent fund raising auctions, could be implemented to further marketing and sales of Artfest's authentic artwork and art memorabilia. Consequently, sales of either company would soar, merely based on the broad marketing that each company would compliment the other with!

The basis of this company, however, is specialty framing.
Observe some of their pieces online, as well as a short description of this unique and exclusive service (below).

Specialty Framing
CSD's custom framing sets us apart from the rest of the industry. Rather than treating framing as a secondary part of our business, we focus on it. We take great pride in delivering the best results you'll find anywhere. Our quality allows you to pass down your commemorative items for generations.

We don't just do sports framing — we create sports art. No competitor can match our matting, framing, or unique layouts. While we specialize in framing sports memorabilia, we can frame anything you desire. We love to be challenged. Look at our photo gallery to see some exciting examples of items we've produced.

Sports figures and athletes throughout the country choose CSD for their personal framing, so you know you can trust us to deliver on quality. We can preserve your military medals, your wedding memories, your graduation diploma, or your child's sports jerseys.
http://www.csdsportsframing.com/custom_framing.asp

***Logically, first and foremost, CSD saves Artfest all the trouble and complication(s) involved with framing their own artwork and art pieces. In short, they compliment Artfest's business in a humongous way.
***Another key thing to keep in mind is the similarity in "authentication" between both parties or companies. Both focus on delivering their consumers, clients, customers, top of the line products that are only available in limited quantity, otherwise AUTHENTIC.

In addition, CSD offers some beautiful items for purchase online, engulfing a larger base for potential consumers, that is, worldwide. http://www.csdmemorabilia.com/

As one can deduce from this simple study, Artfest International, Inc. has really done their homework in evaluating the benefits to this acquisition, similar to how investors evaluate their investment in this very same company.

It seems, at least according to their latest release that their pursuit at mind, is one of acquiring an array of quality and established companies like Charity Sports Distributor, Inc., who will not only bring them MULTIPLE REVENUE STREAMS, but additionally, benefit their business, marketing, or any other component of their business model. This would mean that substantial company growth would not only occur through Artfest's efforts, but through the collective efforts of the company itself, AND these numerous benefiters as well.

"Edward Vakser, Artfest CEO, remarked, "We have long awaited the opportunity when time would permit us to embark on a roll up of a number of well-established firms, benefiting our wholly owned subsidiaries, and solidifying the arms outstretched to ample markets regarding the art and media sectors." Mr. Vakser went on to affirm, "Encouraged by the strong foundation that has been laid, we feel that it would be to our, and shareholders', best interests, for us to begin building value by securing premeditated partners through multiple acquisitions."

The term "roll up" is when a base company buys up (or in this case acquires) an array of other companies to benefit their business, revenue, perhaps equipment/supplies and assets as well.

The literal definition of "premeditated" is "Characterized by deliberate purpose, previous consideration, and some degree of planning", or otherwise, "Planned, weighed, or estimated in advance".
http://www.answers.com/topic/premeditated

Therefore Artfest has logically realized their chances of success in the market will increase drastically by incorporating multiple subsidiary to work for their benefit. Shareholders will consequently be greatly rewarded as the company's evaluation skyrockets through these efforts.

And the best part of all this is -- Artfest International has already announced that this acquisition of CSD is in it's final stages, as well as this being the first among a long line of quality moves to come.