Financial Holding Company Business Plan

Executive Summary

Domino Comptech Holdings (DCH) was formed as a diversified financial holding company. The purpose of the company is to facilitate the acquisition of existing companies and provide additional capital to continue and increase the volume and the profitability of the acquired companies.

The overall business model created by establishing and funding this holding company effectively creates a complete business solution platform of unlimited marketing opportunities. This platform combines certain natural relationship marketing synergies and enables the combined companies to provide a wide variety of complete technology solutions at cost savings to the client.

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 intends to enter into a marketing plan to expand ZumoNet’s customer base and drive additional recurring revenue. ZumoNet presently yields a revenue stream of approximately $20,000 annually and requires a record keeping and billing expense of approximately $3,600 annually. Expanding the marketing base of the company will yield increased profits proportionately as the revenue stream increases and the expense factor is held at minimal levels through consolidation of the record keeping merging into the overall operations of the holding company.

Acquire a Technology company which is a White Box computer manufacturer and also provides networking services and support:

Domino Comptech has entered into an agreement to acquire 100% of the common stock of Kettle-Moraine Computers, Incorporated (KMCI) from its founder Lynx Caracal in exchange for 20,000,000 shares of common stock of DCH and a loan of $5,000,000 bearing interest at the applicable federal rate for the first year and adjusted to the prime rate plus 1% with a minimum of 9% thereafter. The prime rate shall be as published in USA Today. This agreement allows Domino Comptech to immediately acquire and control 100% of KMCI including the revenue stream generated by daily operations. Mr. Caracal will receive guaranteed payments of at least $16,000 per month with the remaining interest payments due at December 31 each year until the stock loan is paid in full from proceeds raised from the first $16,000,000 in stock sales in this business plan. 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. All the stock of KMCI will be held as collateral on this loan in the event of default.

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 developed remarkable marketing inroads into state government procurement contracts and is presently moving into the Federal Government arena to facilitate expanded marketing opportunities of its manufactured computer products and servicing capabilities. Recently the company implemented a marketing strategy through it’s S.E.A.T. management program. Client’s will have the opportunity to purchase all their technology required hardware, software packages, and needed service protection all for one monthly fee. This concept of purchasing technology will allow the client to have access to the latest available equivalent while utilizing cost saving software packages that are tailored for that client’s data system needs.

Acquire a Software company which has a first class management software program:

DCH has identified a software company which developed and markets a strategic software program designed to help businesses better manage and increase profitability. Initial discussions with management of the company indicate the company can be purchased for approximately $87,000,000. The software company produces an EBITD of approximately $1,000,000 annually, has total assets of approximately $8,000,000 and equity of approximately $4,300,000.

The combination of the software company, ZumoNet and KMCI will capitalize on a marketing synergy brought about by the ability to cross market hardware and software products to the present client base of the companies and provide a total solution to address technology and management needs of business. It is anticipated the elimination of duplication between the companies will generate savings of approximately $500,000 annually.

Acquire a Technology Services company which specializes in data storage, telephony and security:

KMCI presently offers a variety of service, wiring, and network solutions. However, as technology is rapidly evolving there is a need to expand into data storage, telephony, and security issues. Government, banks, insurance companies and many other industries need these additional services as they worry about storage and security issues for large amounts of data. 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 would further leverage the existing total solutions provided by the concatenation of a software company, KMCI, and ZumoNet. The end result would be a marketing force which could provide any entity with a total technology, management, and security solution. This synergy does not generally exist in the marketplace today. The capability of large corporate clients to afford and purchase these packages provides stability of income desired for DCH and insures the company of income diversification which will carry the company through uncontrollable downturn in the economy.

To accomplish this strategy, DCH has already completed first round funding of one million dollars ($1,000,000), and the board of directors is currently considering extending Phase II funding in the form of a Regulation 506 D private placement offering in the amount of 22 million dollars.

1.1 Objectives

1. 1. Acquire a Technology company which is a White Box computer manufacturer, and which also provides networking services and support.

1. 1. Acquire a Software company which has a first class management software program.

1. Acquire a Technology Services company which specializes in data storage, telephony, and security.

1.2 Mission

Domino Comptech Holdings is a holding company. The purpose of the company is to facilitate the acquisition of existing companies and provide additional capital to increase the volume and the profitability of the acquired companies. This holding company creates a complete business solution platform of unlimited marketing opportunities. This platform combines certain marketing synergies and enables the combined companies to provide a wide variety of complete technology solutions at cost savings to the client.

1.3 About This Plan

Form Follows Function

This is the business plan for the holding company, Domino Comptech Holdings. However, for some key points we show the numbers that DCH expects from the KMCI division, its main revenue-generator. Specifically:

• The Sales Forecast table indicates the actual and projected sales that DCH expects from the KMCI division.
• The Personnel Plan table shows only the principals in the holding company. Other personnel costs, for the divisions, appear as a summary item only, in the projected Profit and Loss.
• The Profit and Loss table includes only very summarized projections of the divisions, and only the sales and costs of sales of the main (KMCI) division.
• The Cash Flow table presents a summarized and consolidated general cash flow that includes the assumed cash flow of the divisions, in aggregate and summary form.
• Many discussions focus on the holding company operations only. For example, the personnel plan discussion text presents the holding company only. Detailed personnel of the separate divisions are not included in this plan.

1.4 Keys to Success

The keys to success in this business are:

• Maintain and increase product quality by keeping the total product failure rate of Kettle-Moraine Computers, Inc., at or below the current level of five percent.
• Successfully market the S.E.A.T. management program.
• Successfully acquire an existing software company with positive cash flow, existing assets (building, land, and equipment), of at least three million dollars, and with an existing top notch management team.