Acquisition/Investment Criteria

Horizon Partners acquires companies with significant growth prospects and potential for above-average profitability.

1. Company-Specific Characteristics
   
   • Product/Service Line
     
     • Proprietary product/service differentiation
       
     • Minimal fashion or "fad" content
       
     • Leadership position within market niches
       
     • Limited risk of technology obsolescence
       
     • Low cost producer
       
   • Strong Management Team
     
     • Significant industry experience
       
     • Successful financial track record
       
     • Desire for equity participation
       
   • Financial
     
     • Sales: $10-25 million range
       
     • Gross margins in excess of 25%
       
     • Profitable
       
   • Potential for synergistic acquisitions of companies in related businesses
     
2. Industry Characteristics
   
   • Non cyclical
     
   • Competitive barriers to entry
     
   • Fragmented market/market share growth opportunities
     
   • International expansion opportunities
     
3. Industry Preferences
   
   • Manufacturing, distribution, and service industries
     
   • Particular interest in companies in the food, specialty chemicals, packaging, general industrial, printing, consumer products, business and financial services, electronics, and plastics industries.
     
4. Purchase Price
   
   • $3-50 million