Holding Company Business Plan Template [Updated 2024]

I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [insert location here] is a newly established holding company that was formed to be the controlling stockholder in other companies it has invested in. [Company Name] will own assets in both public and private companies, ranging from real estate and manufacturing, to retail and pharmaceutical. The company solely performs oversight and is not involved in managing or day-to-day operations.

Benefits

[Company Name] will provide a number of benefits to its subsidiaries. Those benefits include risk mitigation, asset protection, tax minimization, central control, flexibility for growth and development, and succession planning.

The primary benefit for [Company Name] is to minimize the risk for its subsidiaries that forming and operating a company entails. If the subsidiary were to be sued, the liability would not exist, as the holding company would assume the risk as it is a controlling shareholder. Risk management is enhanced by dividing its assets across multiple companies.

Customer Focus

[Company Name] will primarily serve small to midsize companies across the United States. The demographics of these companies are as follows:

• Must have profits of at least $3 million per year
• Must be in business for at least 2 years
• Must have a Board of Directors in place
• Must be a growing industry
• Has not been audited by the IRS or SEC

[Company Name] will primarily target new and growing businesses that show a growing profit margin for its shareholders.

Management Team

[Company Name] is led by [Founder’s Name], a venture capitalist who has been investing in the stock market for over 40 years. He has worked at hedge funds, venture capital firms, and investment banks throughout his long career. As an investor with all of the necessary trading experience, certifications, and licenses, he has decided to move on to the next phase of his career and pursue a holding company. [Founder] has made a lucrative career in investment management and analyzing the growth and profitability of various companies and industries. With money to invest and a strong legal team behind him, [Founder] will be forming a holding company.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be led by a seasoned investor and business strategist.
• The company will conduct its proper due diligence on the profitability and viability of each subsidiary it plans to hold.
• The company has a strong legal team behind it to perform the necessary risk mitigation.
• The holding company will allow its subsidiaries to operate without their interference.
• [Company Name] will also decrease the subsidiaries’ tax liability by strategically basing certain parts of its businesses in jurisdictions that have lower tax rates.

Financial Highlights

[Company Name] is seeking a total funding of $100,000 of debt capital to open the holding company.

• Office design/build-out: $50,000
• Legal fees and retainer: $25,000
• Salary for Founder: $25,000 to pay for the first three months of salary until the first shareholder distribution is made

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%