MidMark Capital - Investments

MidMark's principal objective is to apply its skills and financial resources to purchase positions in middle market companies and then to develop those companies to their fullest potential.

The main investment activities of the company are:

To identify and evaluate possible investment opportunities.
To prepare business plans and financial projections for candidate companies in cooperation with their management.
To structure and obtain optimal financing for portfolio companies or prospective investments.
To serve on Boards of Directors and provide strategic, operational, investment banking, and merger and acquisition advice.
To assist, supervise, and, if necessary, manage portfolio companies.
To realize capital gains through the sale of investments at the appropriate time.

Management Principles

MidMark's management principles are summarized in the following tenets:

We seek to acquire significant ownership positions in stand-alone middle market companies; primarily from private and corporate owners and under special circumstances, small public companies will be considered.
We prefer being the lead investor and retaining majority ownership together with management, but will consider other situations.
We will make significant equity investments in rapidly growing companies, and obtain our principal financial returns by increasing the value of these equity holdings.
We strive to create a true sense of partnership between management and MidMark by insuring that management has a significant equity stake in their company.
Our Officers will use their experience to assist portfolio companies in strategic development and corporate finance, and we will empower management to run their companies with initiative and authority.
Our policy is to develop companies to their full potential, achieving improvement and growth over the long term by reinvesting the profits back into the business.

Investing

Each company qualified as an investment prospect possesses a unique set of financial qualities which must be carefully considered, both in structuring the investment and in securing a sound financial basis for ongoing operation. The current owners' price objectives, tax situations and attitudes toward continued participation in the business are also of paramount importance. While MidMark has no set formula for acquisition or growth equity investing, a typical approach may be characterized as follows:

A prudent degree of financial leverage will be used, based on the company's asset structure, earning capacity and capital needs for growth.
Management will invest their own personal funds for an equity ownership position.
Institutional investors, known to MidMark, may be invited to participate in equity and/or provide subordinated loans.
Senior debt will be obtained from banking sources with whom we have relationships.
Other financing techniques will be considered where appropriate.

Given the financial resources of MidMark Capital and its Limited Partners, and the extensive experience of the partners in structuring transactions, MidMark is confident of the availability of funding and its capacity to close transactions in the size range contemplated.

Operational and Financial Expertise

MidMark is built on the premise that successful investments in this new century require not only the traditional financial and transactional skills refined in the last two decades, but, more importantly, operational competence and the ability to improve corporate performance in an increasingly global market. The collective background of the Officers can be highlighted as follows:

More than 150 years of experience as managers, senior executives, and board members in prominent operating companies, including P&L responsibility as CEO, and COO, as well as functional leadership of marketing/sales, manufacturing, finance, and corporate development.
Diversity of industry background, which includes manufacturing, distribution, service, systems, retail, and financial businesses serving consumer, industrial and public sector markets.
Involvement in almost 100 buyout investments, ranging in size from $4 million to $840 million, as transaction managers, investors, financial advisors, and fund managers.
Additional experience in mergers, acquisitions, joint ventures, divestitures, financial placements and IPO's.
Broad international experience in Europe, Latin America, Asia and the Middle East, as well as in the United States.

Brief resumes of MidMark's Officers are found in the "Professionals" section.