Appendix B | BUSINESS PLAN FOR A MANUFACTURING BUSINESS | 243-14-company. This would take the form of one-third of the stock in DAY INTERNATIONAL,
INC., and one-third representation on the Board of Directors. As noted in Section B
above, the existing shareholders are willing to design a shareholders’ agreement to protect
the interests and representation of the minority shareholders.
Profit projections show that if all goes according to plan, the investor can expect
no return of his investment in the first year of operation and substantial profit in the
second. (The accompanying profit and loss forecast shows a $338,255 profit for DAY
INTERNATIONAL, INC., by the second year.) While the dividend policy of the corporation
will be to pay modest dividends to investors in order to generate capital for growth, it can
be expected that some of the available profits will be distributed to the shareholders. In
addition, the investor can expect significant capital gains should the corporation make
a public stock offering. The founders plan to do this after several years of profitable
operations.
CAUTiON
Warning to investors! Heretofore you have read an optimistic review of DAY
INTERNATIONAL, INC., and its chances for future success. However, you should realize
that the electronics business is a risky one. Many new products fail, while others succeed
for a brief time, only to be supplanted by new technology, changing public taste, or
foreign competition. While we believe we have planned carefully and well for each of
these eventualities, we want to emphasize one thing loud and clear: Anyone who invests
in DAY INTERNATIONAL, INC., is taking a substantial risk. While we believe chances
of success are excellent, this is by no means guaranteed. In short, please do not invest
money that you can’t afford to lose.