Financial Holding Company Business Plan
Domino Comptech Holdings (DCH) was formed as a diversified financial holding company. This company exists to facilitate the acquisitions of existing companies as well as provide additional capital for the continued growth and profitability of the acquired businesses.
This platform provides unlimited marketing opportunities and is part of a complete business solution. This platform allows the companies to combine natural relationships marketing synergies to offer clients a broad range of complete technology solutions at lower costs.
Acquire an Internet Service Provider:
Domino Comptech acquired 100% of ZumoNet, an Internet Service Provider (ISP) company from Lynx Caracal last year in exchange for 1,500,000 shares of common stock of DCH. The company is planning to implement a marketing strategy to expand ZumoNetՉ۪s customer base as well as drive additional recurring income. ZumoNet presently yields a revenue stream of approximately $20,000 annually and requires a record keeping and billing expense of approximately $3,600 annually. As the company grows its marketing base, it will also yield higher profits. The expense factor can be reduced by consolidating records and merging them into the overall operations.
Buy Technology company that is a White Box computer maker and also offers networking services and support:
Domino Comptech has reached an agreement with Lynx Caracal to acquire 100% of the Kettle-Moraine Computers, Incorporated’s common stock (KMCI). This was in return for 20,000,000 shares DCH common stock and a loan of $5,000,000 bearing interest of the federal rate for the first 12 months and adjusted to the prime rates plus 1%, with a minimum 9% thereafter. The prime rate shall be the one published by USA Today. Domino Comptech is now able to immediately acquire all shares of KMCI. This includes the revenue stream from day-today operations. Mr. Caracal is guaranteed $16,000 per calendar month. Interest payments are due December 31 every year. Mr. Caracal agreed to extend the loan period to five years from the signature date of the agreement to allow DCH five years to achieve its goals of capitalization and repayment of the loan. In case of default, the loan will use all of the stock of KMCI as collateral.
KMCI provides technology hardware and servicing to its customer base, primarily in Gulfstate and Plainsstate. The business model of KMCI is directed toward becoming a Midwestern (and then national) full service Technology provider. The company has made remarkable marketing inroads into state procurement contracts. Currently, it is moving into Federal Government to expand its marketing opportunities for manufactured computer products as well as servicing capabilities. Recent implementation of a marketing strategy by the company’s S.E.A.T. management program. Clients will be able purchase all of their technology requirements hardware, software, and required service protection all under one monthly payment. This model of purchasing technology will give clients the opportunity to purchase the latest version and use cost-saving software packages that are specific to their data system.
Buy a Software company that offers a top-quality management software program:
DCH identified a software company that developed and markets a strategic program to improve business management and profitability. Initial discussions with the management indicated that the company is available for purchase at $87,000,000. The software company generates an EBITD approximately $1,000,000 annually and has total assets approximately $8,000,000 with equity approximately $4,300,000.
Combining ZumoNet, KMCI and the software company ZumoNet will create a marketing synergy that allows them to cross-market hardware and software products to their existing client base and offer a complete solution for technology and management issues. The elimination of duplication between companies is expected to result in savings of around $500,000 per year.
Acquire a Technology Services company which specializes in data storage, telephony and security:
KMCI presently offers a variety of service, wiring, and network solutions. The technology industry is changing rapidly and there is a growing need to expand into data storage as well as telephony and security. These additional services are needed by banks, government, and insurance companies, as they have to deal with large data volumes and security concerns. There is a need to develop a tailored secure system to protect each of their data systems from fraud, terrorism and/or natural disaster on a client-by-client basis.
Lynx Caracal, president of Domino Comptech Holdings has identified service providers which specialize in these additional services and begun acquisition discussions with one such company. This acquisition will further leverage the existing solutions offered by ZumoNet and KMCI as a software company. This would create a marketing force that could offer any entity a complete technology, management and security solution. This combination is rare today. Large corporate clients have the ability to purchase these packages. This provides DCH income stability and protects the company from income fluctuations that could cause economic downturns.
DCH has successfully completed the first round funding for this strategy of 1,000,000 dollars ($1,000,000). The board of Directors is currently considering the extension of Phase II funding via a Regulation 506 D private place offering in the amount 22 million.
1.1 Objectives
- Acquire a Technology company which is a White Box computer manufacturer, and which also provides networking services and support.
- Purchase a Software Company with a premier management software program.
- Acquire a Technology Services company which specializes in data storage, telephony, and security.
1.2 Mission
Domino Comptech Holdings (or simply Domino Comptech Holdings) is a holding company. The company’s mission is to facilitate the purchase of existing businesses and to provide additional capital to improve the profitability and volume. The holding company provides a platform for complete business solutions that offers unlimited marketing possibilities. This platform allows for the combination of certain marketing synergies, allowing the combined companies to offer a wide range of technology solutions at a cost-savings to the client.
1.3 More Information About This Plan
Function follows
This is Domino Comptech Holdings’s business plan. We’ll show some key points. Specifically:
- The Sales Forecast Table shows DCH’s expectations for the KMCI section in terms of actual and projected sales.
- The Personnel Plan table only shows the principals of the holding company. Other personnel costs are shown in the projected Profit & Loss as a summary.
- The Profit and Lost table does not include sales and costs for sales, but only summarized projections.
- The Cash Flow Table presents a summary and consolidated cash flow, which includes the assumed cash flows of the divisions in aggregate and summary.
- Many discussions are focused on holding company operations alone. For example, the personnel plan discussion text presents the holding company only. This plan does not contain details regarding the personnel of the distinct divisions.
1.4 Keys to Success
The keys to success in the business are:
- Kettle-Moraine Computers, Inc. must maintain or decrease its product failure rate at least five percent.
- Successfully market the S.E.A.T. management program.
- Successfully acquire a successful software company with positive cashflow, existing assets (buildings and land, and equipment), at least three millions dollars and a top-notch managerial team.