Equity Investment Sample Proposal

Equity Investment Opportunity in Senior Living, a Guaranteed Growth Industry

We know that the Bartletts are savvy investors, always looking for new opportunities in markets that are guaranteed to grow. The population in the United States is aging. That’s a fact.

As the Baby Boom post-World War II generation ages, millions will need to move into living accommodations that offer a range of care, from occasional housecleaning and personal care services to fully assisted living with on-site nursing and meal services. Vitale Senior Living is dedicated to providing facilities for our aging population; facilities that are welcoming, friendly, and even gracious. Able-bodied residents may live independently and engage in a wide variety of activities, knowing that full-time care and meal service is available when needed. Our Vitale Gardens Pasadena and Riverside and Vitale Bay San Diego and San Francisco communities have long waiting lists.

We are currently engaged in building a beautiful new senior living community, Vitale Villa, in Santa Rosa, California. Our business has grown by over 300% over the last five years, and we expect our business to continue to expand for decades to come. All this adds up to an exciting investment opportunity for you.

For a limited time, Vitale Senior Living is offering a select group of elite investors the opportunity to invest in 10,000 shares of Vitale Senior Living stock for $500,000. This stock is likely to increase in price to more than $100 per share within two years as we plan to go public in 20xx when our expansion plans are complete. We will call you to schedule a meeting on August 30 to discuss this exciting equity investment opportunity. We look forward to investing in the future together.

Vitale Senior Living currently operates four senior living communities in Pasadena, Riverside, San Diego, and San Francisco. Due to overwhelming demand for our living facilities and services, we are in the process of building a beautiful new community in Santa Rosa. Providing rental accommodations and services for our aging population is a growth business that will continue to expand for decades to come.

To assist us in our own growing business and to provide investment opportunities for elite investors, Vitale Senior Living is currently offering blocks of 10,000 shares of our company for $500,000. This stock is predicted to double in price within two years, and will continue to increase in value over time. As aging is inevitable, you might not think that innovation is important in the field of senior care.

However, senior living communities are springing up everywhere, and keeping our reputation as one of the best in the field is of great importance to us. Here are a few of the plans for the four facilities we already operate, and for our new community, which is currently under construction. Innovative ideas set Vitale communities apart from institutions for the aging.

Offer a menu of several items for each meal. Rather than serve a prepared plate of food to our residents who have signed up for our meals program as less imaginative institutions do, we have switched to offering several items for each meal, which the residents can order via computer or telephone 48 hours in advance. This feels more like "dining out," allows for greater variety in tastes, and results in much better satisfaction among our residents. Professional nutritionists consult in menu preparation, and a trained chef oversees preparation of lunches and dinners.

Provide a swimming pool and whirlpool tub. There’s nothing better for staying mobile as you age than water exercise and whirlpool therapy. All our communities feature pools. All pools are enclosed and climate controlled to allow for year-round use.

Facilitate learning opportunities and social clubs. Most seniors look forward to learning new things and to socializing with others. Each of our communities employs a social director to continuously survey residents and work with local experts to offer classes and opportunities for on-site entertainment and mingling.

Regular check-ins with geriatric specialists. Most senior living communities rely on the residents or their families to ask for assistance when needed. At Vitale Senior Living, our geriatric specialist will interview residents twice a year or more often if requested to ensure all residents are well and happy and receiving the level of care they need. Transportation and outing trips.

Many seniors no longer drive, so we offer daily bus service to local stores, senior centers, and libraries, as well as special outings to places and events of interest. We regularly survey our residents to get their input on the services we provide. Vitale Senior Living stays up-to-date on the market. Our most recent study was completed in 20xx by the independent firm of Jones Jansen, LLC.

The results are show below.

Study Methodology

Statistics were pulled from U.S. government census reports, from the agency for Aging in America, and from recent reports from the U.S. Association of Senior Living Providers. Surveys were also conducted among the members of the Retired Americans Association, with 300,000 surveys emailed and a return rate of 34%, or 102,000 surveys returned.

Target Market

Our target market is persons 65 years and older with household incomes of at least $75,000 per year. The target audience is mostly retired and desires to move into a community where they can age gracefully and receive all the services they require without the need to move again. Our surveys showed that some of the most common desires among the target market were for a variety of activities, a community swimming pool, and greater choice for meals in the meal programs.

Occupancy rates among senior living communities are high, but our surveys show that many residents are dissatisfied with the services they receive in their communities and would prefer to move into a Vitale community if possible. Costs of living in senior communities and variety of services offered are the two determining factors in where seniors choose to live. Vitale Senior Living tailors our communities to please senior households with at least $75,000 in annual income.

In 20xx, the last year for which data is available, there were 46.2 million persons aged 65 years or older. This represents 14.5% of the U.S. population, or about one in every seven Americans. Thus, the current market is huge, and the demand for senior living communities and services grows every year.

Growth Potential

By the year 2060, estimates say there will be about 98 million older persons. People 65+ are expected to represent 21.7% of the population by the year 2040. Occupancy rates for senior housing currently average 92% nationwide, and are increasing. For each of our in-demand Vitale communities, occupancy has remained at 100% for four years now.

All of our communities have waiting lists of residents who want to rent from us.

Recommendations

Developing and managing senior living communities is a growth field in the United States, and Vitale Senior Living is a leader in this market. Continuing investments to expand our communities and offer the best services will serve both our clients and our investors. Of course Vitale Senior Living is not the only company in the field of building and managing senior living communities. Currently, our major competitors are Corlinn Corporation, G.R. Silver Inc., and Community Club Inc.

Corlinn Corporation Corlinn Corporation owns and manages a chain of 40 high-rise assisted living apartment houses across the United States, with a 92% occupancy rate. Six of these facilities are in California. As these do not offer many of the amenities provided by Vitale communities, Corlinn apartments are largely occupied by lower income seniors, who are not our target market.

G.R. Silver, Inc. owns and manages eight small senior communities in California. While very nice, these communities do not offer the range of care and services provided within our Vitale communities, so seniors are likely to move to other facilities as they need more care. Community Club, Inc. manages over 60 senior living facilities in California, but does not own any of the real estate it oversees. Thus, there are no standards across Community Club properties, and when repairs or rent adjustments are needed, Community Club must reach accommodation with the individual real estate owners.

This need has sometimes resulted in disruptions such as withholding services to the residents of these complexes.

Summary

Vitale Senior Living owns all of the real estate it manages, and provides all the amenities and services desired by wealthy retirees. This gives us a major advantage in the CA market, as many upper-class Americans want to retire to our state to take advantage of the warm climate. Our products are our communities, and we are always striving to improve the amenities and services we provide there. As previously discussed in this proposal, the growth potential in this market is huge as the American population ages.

See the Market Study page for details.

Steps in Product Development

We continuously assess and improve the properties and services in all our communities. Some of our most recent strategies for improvements are detailed on the Innovations page. When Vitale Villas in Santa Rosa is complete in 20xx, the number of rental units we offer will expand by 20%, and so will our clientele and corporate income. We plan to use all investment monies to fund new staff hires and construction, which will be completed by 20xx.

The costs of establishing the new community in Santa Rosa is estimated to be 12.9 million dollars, to be funded by equity investments such as yours. The payback is predicted to be huge as shares of our company grow in value along with our profits and demands for our products. The following is our projected schedule for the Vitale Villas expansion project. With the opening of Vitale Villas and the initial public offering of our stock, shares are predicted to skyrocket in value.

The plans for launching our new Vitale Villas community and our initial public offering of stock are as follows.

Pre-Launch Considerations

We have already generated a lot of buzz about Vitale Villas and our company in general. Articles are scheduled to appear in multiple magazines of interest to CA seniors the month before the grand opening, and the nation’s largest conference on aging will take place 21 days before our grand opening, which is approximately 5 months before our initial stock offering. This should result in abundant media coverage and maximum public interest in Vitale Senior Living and its new stock offering.

The Launch

The mayor of Santa Rosa and two of our U.S. Representatives have agreed to speak and perform the ribbon cutting at our grand opening of Vitale Villas. At that time, our CEO will announce our initial public stock offering. As residents flood into Vitale Villas, we will prepare for the public offering.

Post-Launch Considerations

We expect Vitale Villas to be 100% occupied within 60 days after the grand opening. Experts predict that shares sold during the initial stock offering will double or even triple in value within six months. As previously mentioned in this proposal, Vitale Senior Living already manages multiple highly successful senior complexes, and is in the process of expanding our offerings by building a new community in Santa Rosa. Here are a few things you might like to know about that new project.

The goal of creating the Vitale Villas complex in Santa Rosa is to provide much-requested senior living options in that area and to expand the corporation’s market share and profits. We plan for Vitale Villas to be completed and ready for our grand opening on June 30, 20xx. Vitale Senior Living has already completed the purchase of the land for Vitale Villas in Santa Rosa.

Design approval and all permits are complete, and construction has begun. Construction is always weather-dependent. Although weather is typically mild in this area, in the event of a major weather event, construction delays could happen.

As soon as we have model apartments available for client inspection, we will begin to take deposits on residential slots for our new community. This, along with an influx of investment from savvy investors like you, will help to offset expenses as we move forward. At the grand opening of our Vitale Villas community, we will announce the upcoming initial offering of our stock as Vitale Senior Living goes public. Following is a list of all sources of funds for the proposed project.

Existing Corporate Funds Vitale Senior Living has already invested over 10 million dollars in purchasing land and architectural services for the Vitale Villas project. Equity Investments from Elite Contributors We plan to raise $12.9 million dollars from funds generated by sales of blocks of stock from pre-launch investors like you. More funds will roll in during the initial stock offering in October, 20xx. Continuing Income from Existing Rentals and Deposits Vitale Senior Living brings in substantial profits each month from the existing facilities we manage.

As the Vitale Villas community is built, we will take deposits from future residents who want to reserve an apartment in our new complex. Vitale Senior Living has been a stable, profitable company for more than 10 years. The new Vitale Villas project is well funded and will result in substantial earnings for Vitale Senior Living and its new stockholders. Vitale Senior Living requires funding for the completion of our expansion projects.

Funds are to be used as follows. Completion of New Vitale Villas in Santa Rosa, CA Amount. $11.5 million Building of new community that can house and provide services for up to 386 new residents. Initial Hiring of Staff for Santa Rosa Community Amount.

$1.4 million Prior to opening Vitale Villas, we need to hire a social coordinator, cooks, a nutritionist, nursing staff, cleaning staff, groundskeepers, maintenance personnel, and various clerical staff. After the first month, rents paid by residents should pay all staff salaries. All our existing facilities have waiting lists, so occupancy is predicted to continue at 100%.

We already have a list of 195 clients who have indicated interest in the new Vitale Villas community. The following table outlines Vitale Senior Living’s projected income for the next three years. Note that the income projection rises dramatically in two years as the new Vitale Villas community becomes fully realized and 100% occupied. Shares of stock are projected to rise in value as company profits grow.

Vitale Senior Living has great plans for the future. We plan to create more senior communities within California, and are currently studying the viability of expanding into Nevada and Arizona, which are both popular retirement destinations for seniors. As specialists in our industry, Vitale Senior Living has the ability to understand the needs and expectations of our senior clientele.

We strive to continuously improve the resident satisfaction in our communities, and thus drive the desire of clients to move into a Vitale complex. We are also in the process of negotiating agreements with a variety of partner companies to create more opportunities for our residents and more profits for our company. These partners include restaurants, insurance companies, the mortuary industry, investment professionals, travel industry professionals, and recreation destinations.

Vitale Senior Living is a current leader in the senior services industry, which is predicted to be a growth industry for decades to come. Our plans will grow our market share in the future. Vitale Senior Living has been in business since 20xx, and we have experienced exponential growth during that time.

Our mission is to provide environments that allow our community residents to enjoy active, carefree, engaged lives. We have been doing exactly that for ten years now. Vitale communities have been featured in many "Best Places to Retire" articles in multiple magazines. Vitale Senior Living employs more than 900 full- and part-time staff in its offices and senior communities.

Vitale Senior Living is headquartered in Riverside, CA and has additional offices in our facilities in Pasadena, San Diego, and San Francisco. An additional office will be opening soon in our new Santa Rosa facility. Our mission is to provide environments that allow our community residents to enjoy active, carefree, engaged lives. Products and Services – We build and manage senior living communities with services that range from occasional household assistance to 24x7 care.