If the Shoe Fits…

Company Characteristics

StoneCreek considers the qualitative as well as the quantitative characteristics of a company when considering an investment opportunity:

Qualitative			Quantitative
	Experienced and passionate leader			Adjusted EBITDA of at least $2 million
	Team with vision, ability and commitment			Historical growth and profitability
	U.S. Headquarters (preferably West Coast)			Performance supports leverage
	Niche market focus			Sustainable cash flow
	Strong brand / corporate identity			Significant growth opportunities
	Limited capital intensity
	Low technology or obsolescence risk
	Defensible market position

We target investments in companies that have multiple avenues to grow value, including revenue growth, cost rationalizations and improved operations, as well as strategic acquisitions.

Industry Preferences

StoneCreek’s principals have expertise in a wide range of industries. While we do not limit ourselves to one industry segment, we do focus on companies in industries supported by long-term macro economic trends and those that we believe will benefit from macro demographic trends (population growth and mix, demand, etc.). Areas of particular interest are:

Transaction Structure

StoneCreek prides itself on providing flexible, creative and conservative structures to fit the needs of the specific company and owner’s requirements (common equity, preferred equity, subordinated debt, seller paper, and/or earn outs). Typical transactions have the following characteristics:

	Enterprise value of at least $10 million
	Control or minority equity investments
	Opportunity for sellers to retain significant equity upside
	Investment horizon of 5 to 7 years

While leverage is used to enhance investment returns, excessive leverage is avoided.