BHGI Huge news!!!!!
BEVERLY HILLS GROUP, INC. Enters Final Phase of Banking Services Company Acquisition.
BEVERLY HILLS, CA -- April 26, 2016 -- InvestorsHub NewsWire -- BEVERLY HILLS GROUP, INC. (“The Company”) (OTC:PK BHGI) is pleased to announce they are in the final stage of their third acquisition, “ON Comercio”.
ON Comercio is a niche banking company that installs Point of Sale (PoS) units in small convenience stores and kiosks. This provides them with banking/credit card services, domestic/international shipping services and inventory management/ordering services. In addition, these PoS units can be used to pay tax and utility bills. ON Comercio will earn a percentage of each transaction.
One critical aspect of the ON Comercio service is that it allows the stores to participate in a wide range of services. Most small convenience stores and kiosks in Mexico do not have bank accounts. By opening a bank account with ON Comercio the shop becomes more official in the eyes of the government, their service providers (i.e. utilities) and their suppliers. The stores will also be able to accept credit and debit cards, which are growing in popularity in Mexico.
The company plans to rollout ON Comercio services in three states initially: Baja California, Guanajuato and San Luis Potosí.
Management estimates that the ON Comercio business could reach $42M in revenue by Year 2 after funding. Listed consumer finance operations in Mexico trade at an average of 2.9 times Price to Sales. Applying this metric to the estimates for Year 2 provides a valuation of $121M to the ON Comercio business. Management estimates that approximately $18M would have to be invested to achieve this level of sales, providing a value of approximately $103M from this business.
We believe that the longer-term valuation of ON Comercio could be much higher. As the business grows and becomes a more integral part of the Mexican convenience store industry, the value of ON Comercio could rise towards $1B.
AI
