Business Plan of Operations for MSOA
Executive Summary
Based in Irvine, CA, My Social Income, Inc. (“MSOA”), was formerly a communications company, but recently has dropped the pursuit of telecom customers and has changed its business strategy to become a holding corporation. Management has developed a new business plan whereby MSOA will acquire small but profitable businesses through the issuance of convertible preferred stock or cash. Each of these acquisitions will function as a standalone subsidiary within MSOA. Each will have its own P&L statement and Balance Sheet with MSOA acting as a parent corporation. During the acquisition or soon after, MSOA may install a Managing Partner to oversee the day to day operations of the subsidiary.
Highlights
The Managing Partner Concept
The Managing Partner concept is unique and will provide significant cash flow to MSOA along with an exit strategy for the subsidiary that is acquired by MSOA. Not all acquisitions will utilize the managing partner concept but many will. The proposed managing partner will buy into the acquired subsidiary for 20% of its purchase price. The managing partner will share in the profits of the subsidiary at a rate to 20% per annum which will be paid to them in the form of a bonus and earn a competitive salary for managing the subsidiary. Over the period of five years, the managing partner may elect to purchase the subsidiary from MSOA using their share of the profits. At the end of the five-year term, the managing partner may then purchase the subsidiary in full based on its current market value. If the managing partner elects not to purchase the subsidiary, MSOA may spin it off and sell it on the open market based on its market value. The managing partner also has the option to cancel their commitment to the subsidiary if, within one year, they notify MSOA. The managing partner would be entitled to a full refund of their 20% buy in, after a 90-day notice period which allows MSOA to acquire a replacement managing partner. This concept drives annual profit and can create a major financial gain if brought to fruition.
Description of Business
Mission Statement: About MSOA
Based in Irvine, California, My Social Income, Inc. (“MSOA”), has become a holding corporation and has developed a business plan of operations to acquire small but profitable businesses through the issuance of convertible preferred stock or cash. Each of these acquisitions will function as a standalone subsidiary within MSOA. Each will have its own P&L statement and balance sheet, with MSOA acting as a parent corporation, while allowing Managing Partners to continue the growth and operations of the subsidiary. The ultimate end goal will be to acquire $4,000,000 in assets to enable the company to trade on the NYSE Marketplace Exchange.
Company Ownership/Legal Entity
My Social Income, Inc. is a SEC C Corporation publicly traded as OTCPK: MSOA. The name will be changed soon to more accurately reflect on our new mission.
Company History
Founded in 1997 as InteleCom, Inc. MSI offered a wide array of communication services. With the appointment of new Chief Executive Officer, Christopher Kimberlin, the company is taking a new direction in its journey to the NYSE Marketplace Exchange. Mr. Kimberlin was appointed to be CEO on October 13th 2016 and his vision is to take this company to the NYSE Marketplace Exchange within six months to one year, at the most.
Important strengths and core competencies
The most important strength MSOA possesses is our business model. MSOA seeks to become a “mini Berkshire Hathaway”, acquiring profitable private companies and folding them into MSOA. In short, we are buying assets with preferred stock or cash. MSOA also has something extra, the Managing Partner Program. As explained previously, this program allows a Managing Partner to own a business with a fraction of the funds required to buy one. The proposed managing partner will buy into the acquired subsidiary for 20% of its purchase price. The managing partner will share in the profits of the subsidiary at a rate to 20% per annum which will be paid to them in the form of a bonus and earn a salary for managing the subsidiary. Over the period of five years, the managing partner may elect to purchase the subsidiary from MSOA using their share of the profits. At the end of the five-year term, the managing partner may then purchase the subsidiary in full based on its current market value. If the managing partner elects not to purchase the subsidiary, MSOA may retain the entity or spin it off and sell it on the open market based on its market value. The managing partner also has the option to cancel their commitment to the subsidiary if, within one year, they notify MSOA. The managing partner would be entitled to a full refund of their 20% buy in, after a 90-day notice period which allows MSOA to acquire a replacement managing partner. Funds acquired from the managing partner program will provide MSOA with the liquid cash necessary to acquire larger companies with more significant assets and cash flows in the future.
Challenges MSOA Faces Now and in the Near Future
Identifying and making acquisitions is at the forefront of MSOA short term goals. With our new CEO, Christopher Kimberlin and his expertise in this endeaver MSOA is uniquely positioned to take advantage of Mr. Kimberlin’s expertise in acquiring and turning companies around and making them more profitable in a short period of time. He is a believer in “bootstrapping” business by making them grow with as little debt involved as possible.
Why our Model Will Work
Because it has worked in the past for others who have tried it. Two different approaches will be used when it comes to acquisitions. MSOA will acquire healthy companies with significant cash flow. It will also buy distressed entities in need of restructuring that will become profitable once the restructuring takes place. The net result will be large heterogeneous companies composed of separate verticals that when combined together will create a massive profit making operation. Not to mention the Managing Partner program, which will both fund MSOA and allow it to find competent managers of its acquisitions who all will have financial motivation toward profitability. Mr. Kimberlin, CEO, has experience in the Mergers and Acquisitions space and has lined up more than 50 private companies who are looking to divest or merge with a larger public company.
Cash Flow- Where the Money Will Come From
Revenue from Acquired Companies
Once MSOA acquires a company through the use of convertible preferred shares or cash, the acquired company may be run by the incoming Managing Partner. The acquired company’s balance sheet will be consolidated with MSOA’s. Once the acquisition is complete, MSOA will then take control of the company’s bank account and cash flows. At this point the cash flows become part of MSOA’s income statement as well.
Managing Partner Funds
Upon most acquisitions, a Managing Partner will be brought in. The managing partner will invest 20% of the purchase price to become the managing partner and to share in 20% of the profits. The managing partner will also draw a salary to run the business. Each acquired business with a managing partner will have a five-year exit plan. The managing partner may choose to use their 20% share to purchase the business they are managing from MSOA at current market value at the end of the five-year term. They may decide not to buy the business and MSOA may retain or sell the business on the open market at current market value. In the end, MSOA will realize the profits of the business for five years, and the sales price of the business at the end of the five-year term of ownership if sold.
Stock Price Appreciation
As more acquisitions are made, MSOA’s consolidated revenue, that will be reported quarterly, should increase. Should the stock price move in tandem with earnings, the stock’s price increase will bring value to shareholders.
Targets for Acquisition
Who MSOA is Looking For
In order for this plan to be successful, MSOA must acquire companies and take them public on a regular basis. The verticals MSOA management is researching include but are not limited to:
*Bio Medical Companies
*Food Service & Hospitality
*Real Estate (Commercial or Residential)
*IT Consulting & Software Companies
Any business seeking to become part of the MSOA family should have revenue of at least $400,000 gross per year and a business plan to double that in three years’ time. Ideally, prospects would have been in business for at least two years with auditable double digit revenue growth quarter by quarter. Managing Partners should be in place, seasoned and ambitious to expand their operations. MSOA is not looking to buy a business and run it. MSOA is looking to buy businesses and bring in investing managing partners to run them. Some acquisitions will have experienced management in place and may not need a managing partner but most will.
Current Management
MSOA Executive Bio
MSOA Chief Executive Officer Christopher Kimberlin was born in Los Angeles, CA and raised in Southwest Ohio. After graduating from college with a B.A.’s in International Relations and Economics he began his work in the Banking industry. Eventually he transitioned into Real Estate and owned several successful businesses in this industry for 15 years. During this time period he also returned to school and earned his Master in Business Administration (M.B.A.) with a concentration in Entrepreneurship. For the past 8 years he has been involved in turnaround management consulting and small and medium sized business sales and mergers and acquisitions.
Summary
Although we still have a lot of hard work ahead, the leadership of MSOA is excited about the opportunities that lie ahead of us in the next year and the next decade. We believe our strategic repositioning enables us to take advantage of opportunities for short to medium-term cash flow while transitioning ourselves into a Holding Company. As we continue to execute on our plan, we believe incredible opportunities lie ahead for us, for our employees, our partners and our shareholders.
Safe Harbor Statement
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.
For more information please contact:
Christopher Kimberlin, CEO, My Social Income, Inc.
480-559-4300
chris@ckventureconsulting.com
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