• Small Business Acquisition: Acquiring profitable small businesses from retiring owners to transition them into employee-owned entities.
• Employee Ownership Software Platform: Providing a proprietary software platform designed to manage financials, operations, and employee equity for their network of employee-owned businesses.
• Operational & Financial Support: Offering ongoing operational guidance, financial management assistance, and strategic resources to the leadership and employees of their companies.

Teamshares (TMS) operates as a holding company that acquires small businesses from retiring owners and converts them into employee-owned companies. Once acquired, Teamshares provides these businesses with essential support, including software, financial products, and advice, to facilitate their growth and stability within the Teamshares network.

Given this unique business model, Teamshares does not sell products or services to external major customers in the traditional business-to-business (B2B) or business-to-consumer (B2C) sense. Therefore, it does not have "major customers" to list in terms of companies that purchase its offerings or categories of individuals it directly serves.

Instead, Teamshares' core activity involves acquiring and managing a portfolio of small businesses. These acquired businesses constitute its assets and are the sources of its revenue, rather than being external customers.

Michael Brown, Co-founder & CEO

Michael Brown co-founded Teamshares in 2018 or 2019 with Alex Eu and Kevin Shiiba. Before becoming an entrepreneur, he worked in investment banking, advising corporations on mergers and acquisitions. He then transitioned to small business ownership by acquiring an electrical contracting business in Western Canada. Brown is noted for having a "200-year plan" for Teamshares, reflecting a long-term vision. He and the executive team have personally invested in the company.

Brian Gaebe, Chief Financial Officer

Brian Gaebe has extensive experience in finance and accounting. He has been serving as the Chief Accounting Officer and Director of Finance at Teamshares since March 2021. Prior to joining Teamshares, Gaebe was the Chief Accounting Officer and SVP of Corporate Finance at Discovery Midstream Holdings II from April 2019 to March 2021. He also held various positions at EXCO Resources, Inc., including Chief Accounting Officer and Corporate Controller from May 2016 to April 2019, and began his career at KPMG as a Manager.

Alex Eu, Co-founder & President

Alex Eu is a co-founder of Teamshares, alongside Michael Brown and Kevin Shiiba. He was also one of the early investors in Michael Brown's prior business ventures.

Kevin Shiiba, Co-founder & CTO

Kevin Shiiba is a co-founder of Teamshares, having established the company with Michael Brown and Alex Eu. He served as a formal technology advisor for the small businesses they were involved with.

Madhuri Kommareddi, Chief Operating Officer

Madhuri Kommareddi serves as the Chief Operating Officer at Teamshares.

1. Operational Challenges in Scaling and Integrating Diverse Acquisitions: Teamshares' strategy involves acquiring a high volume of small businesses across numerous industries, with a stated goal of 10,000 companies. The inherent complexity of integrating these diverse entities, establishing new leadership, and consistently implementing their employee ownership model across a broad and varied portfolio presents significant operational challenges. Reports indicate difficulties with business integration and leadership transitions post-acquisition, and concerns about inconsistent management approaches and a potential lack of specialized operational expertise.
2. Financial Viability and Sustained Profitability of the Business Model: The company's tech-enabled model contributes to high operating costs, and it has historically contended with high interest rates and stagnant returns. The long-term ability to generate consistent profits and demonstrate sustained growth in employee equity value across its extensive and varied portfolio, while managing these substantial overheads, represents a critical financial risk.
3. Dependence on a Continuous Supply of Suitable Acquisition Targets: Teamshares' growth is predicated on acquiring small businesses from retiring owners. Although there is a large market of such businesses, the company has specific acquisition criteria. Its unique model, which includes the integration of a replacement president, may lead to passing on potential opportunities or making lower offers compared to other buyers. A failure to consistently source and acquire a sufficient volume of high-quality, suitable businesses at attractive valuations could impede its growth and scalability.

Teamshares (TMS) primarily focuses on acquiring small to medium-sized businesses (SMBs) from retiring owners and transitioning them into employee-owned entities. The company also provides financial products such as neobanking, credit cards, and insurance to these acquired businesses.

The addressable market for Teamshares' main service of facilitating employee ownership transitions for small businesses is substantial within the United States. An estimated 4.5 million American SMBs are projected to seek succession in the next decade. Additionally, approximately three million small and medium-sized enterprise (SME) owners in the U.S. are approaching retirement age.

Expected Drivers of Future Revenue Growth for Teamshares (TMS)

Over the next 2-3 years, Teamshares (TMS) is expected to drive future revenue growth through several key strategies:

1. Aggressive Acquisition of Small Businesses: Teamshares' core business model involves programmatically acquiring small businesses from retiring owners. The company targets businesses with $0.5 million to $5 million in EBITDA and has a long-term vision of building a network of 10,000 employee-owned small businesses across America. Continued execution of this acquisition-based model will be a primary driver of consolidated revenue growth.
2. Enhanced Performance and Organic Growth of Portfolio Companies: Teamshares aims to improve the operational and financial performance of its acquired businesses by implementing new leadership, providing financial education, and fostering employee ownership. By aligning employee incentives, the company seeks to generate organic growth within its existing portfolio, contributing to overall revenue expansion.
3. Expansion of Financial Products and Services: Teamshares is actively developing and rolling out a suite of financial and software services tailored for its network of employee-owned businesses. This includes recently launched digital banking services and business insurance, with plans for further development of a neobank, charge cards, and additional insurance solutions. These offerings represent new revenue streams and opportunities to increase revenue per acquired company.
4. Leveraging its Tech-Enabled Platform for Scalability: The company's proprietary software and tech-enabled acquisition model allow it to systematize the buying process, equity management, and operations for a high volume of deals. This technological foundation facilitates efficient scaling of acquisitions and effective management of its growing portfolio, enabling more rapid revenue growth.

Share Issuance

• The business combination with Live Oak Acquisition Corp V values the combined company at a pro forma enterprise value of $746 million and a pre-money equity value of $525 million.
• Existing venture investors, including Khosla Ventures and USV, will roll all of their equity into the public company.
• The transaction is 100% primary, with net proceeds expected to be used to acquire new operating subsidiaries.

Inbound Investments

• A committed $126 million PIPE (Private Investment in Public Equity) financing has been secured, led by accounts advised by T. Rowe Price Investment Management.
• Combined with Live Oak V's cash in trust (assuming no redemptions), the business combination could deliver up to $333 million of primary proceeds.

Outbound Investments

• Teamshares programmatically acquires small and medium-sized enterprises (SMEs) from retiring owners, targeting businesses generating between $0.5 million and $5 million of EBITDA.
• The company operates subsidiaries that generate over $400 million in consolidated revenue across more than 40 industries and 30 U.S. states.
• Teamshares aims to eventually own 20% of the businesses it acquires, with employees owning the remaining 80%.