Success through partnership

Following a transaction, Fountain Square would work with the owner to preserve the legacy of the business and capitalize on the opportunities available to the company. Fountain Square has the experience to structure the transaction in a way that meets the business owner’s needs while creating a capital structure that allows the company to operate effectively and enhance value. Upon the closing of a transaction, the hope would be to join the management team full-time to help execute on strategic initiatives and complementary acquisitions.

Fountain Square views a transaction as a partnership with the business owner and management team, working with them to transition and grow the business. Fountain Square believes that the strategy of partnering and aligning incentives will result in greater success and fulfillment for all parties.

Fountain Square looks for long term opportunities for growth

• Driving operating efficiency to improve margins and cash flow

• Pursuing new product categories or service channels

• Expanding into new geographies or market segments

• Acquiring businesses that are complementary to existing operation

A different approach than traditional private equity

• No forced investment timelines: management teams can position the company for the long term

• No over leveraged balance sheet: businesses can weather economic cycles and protect equity through recessions

• No institutional demands: strong emphasis on preserving the culture, values, and community of the business

Fountain Square specifically targets companies with the following characteristics:

• Culture centered on speed and customer service

• Strong management team with a track record of profitable growth

• Defensible market position with structural barriers to entry

• Differentiated products and/or services

• Mission critical to the supply chain

• Recurring revenue from a loyal, diversified customer base

• Ability to expand product or service offerings

• Operates in a fragmented industry that allows for consolidation

• Agile and nimble corporate structure

Vertical Focus

• Consumer / consumer packaging

• Value-added distribution

• Light manufacturing

• Maintenance, repair, & overhaul ("MRO") services

Transaction Focus

• Located in the United States or Canada

• Change-in-control investments

• In partnership with management

• Buy-and-build strategy