Presentation to Michigan Business Brokers Association November 1

Presentation to Michigan Business Brokers Association November 1, 2012 Cascade Partners – Mac Gerlach Huron Capital Partners – Chris Sheeren Superior Capital Partners – Scott Hauncher

Intro: Cascade Partners • Established: 2012 • Location: Southfield, Michigan and Bannockburn, Illinois (Chicago suburb) • Capital: $20 million of deployed capital (in process of raising a $50 million fund) • Considering a SBIC license • Investment Focus: Both a private investment and an investment bank firm • The private investment activities are focused on • Debt and equity investments • Minimum of $1 MM LTM EBITDA • Value Added Manufacturing, Healthcare, and Business Services • The investment bank is a registered broker/dealer, with a significant portion of the practice dedicated to assisting with acquisitions for larger corporate clients • Other • Please visit our website (www. cascade-partners. com) to learn more 1

Intro: Huron Capital Partners • Established: 1999 • Location: Detroit • Capital: $600 million in committed capital • The Huron Fund I L. P. (2000): $72 million • The Huron Fund II L. P. (2005): $185 million • The Huron Fund III L. P. (2008): $350 M • Investment Focus • Service, manufacturing and distribution companies in the U. S. or Canada • Revenue up to $200 million • EBITDA of $5 million or more; add-ons of any size • Other • Completed 60 investments since 2000 2

Intro: Superior Capital Partners • Established: 2007 • Location: Detroit • Capital: $60 million in committed capital • Investment Focus • • Special situation investments in the lower middle market Underperforming, underfunded, or distressed companies based in the U. S. or Canada Revenue of $10 million to $150 million EBITDA of $0 to $7 million; add-ons of any size • Other • Currently managing 5 platform investments in the following industries: • Auto Aftermarket, High-Ed Publishing, Specialty Chemicals – Adhesives, User. Interface Electronics, Gourmet Desserts • Completed 12 investments since 2008 3

What is Private Equity?

Private Equity Comes in All Shapes and Sizes • Industry focus: targeted (e. g. , healthcare) versus generalist • Asset type focus: real estate, private company stock, distressed assets, public company stock, options, derivatives, currency, debt, etc. • Size: funds of all sizes – small funds <$5 mm to mega funds >$1 billion • Investment horizon: from less than 2 years to well over 10 years • Control: minority versus control equity • Stage: from seed capital to later stage buyouts to turnarounds / special situations • Transaction type: buyouts, recaps, buy-and-build, family successions, carve-outs, industry market-entry initiatives • Involvement: active operators, active managers, passive investors 5

Type of Equity Varies by Stage of Company Equity Funding by Stage of Company Typical VC Fund Typical PE Fund Late Stage Private Equity (Buyouts, Growth, Turnaround, etc. ) Growth Equity Seed Equity Early Stage VC Later Stage VC Company’s History (Time) 6

Contrasting Private Equity and Venture Capital 7

How Private Equity Funds Work Economics to LPs: § Return of capital (+ preferred return in some cases) “Investors” LP LP § Percentage of all gains § Incur partnership expenses Limited Partner LPs make capital commitments to the Fund via a Limited Partnership Agreement GP “calls capital” as needed to fund investments General Partner The Fund manages the Funds Economics to GP: The Fund makes investments directly into companies (typically through blocker corporations) § Annual management fee § Carry on gains § Share of transaction & portfolio monitoring fees Portfolio Company 1 Portfolio Company 2 8 Portfolio Company 3 * The above structure/example is generic and specific details will vary between funds

Raising Capital for an Equity Fund • Long, time consuming process • Highly dependent on relationships, track record, match of strategy and market dynamics, LP capital availability (allocations), etc. • Types of Investors: • • Wealthy individuals / families Non-bank financial institutions Pension funds Insurance companies University endowments Foundations Corporations (more common for VC) Fund of funds 9

Creating Equity Value • Three Ways to Create Equity Value Enterprise Value = (EBITDA x Multiple) Grow Sustainable EBITDA Ways To Create Value Accelerate Value Drivers • • • Efficient production Economies of scale Expense management Grow revenue Synergistic add-ons - Debt Increase The Exit Multiple • • • Growth prospects Diversification Trend line Infrastructure Management Reduce Debt • • • Buy/structure right Maximize capital efficiency Capital expenditures Working capital Sell non-core assets Tax shields 10

We’re Seeking Acquisitions. . .

Targeted Industries: Cascade • Testing, inspection, certification, standards development and QA services • Pharmaceuticals, Nutraceuticals , Medical devices, Food , Water • Manufacturing and/or marketing companies • • Components to the automotive, heavy truck, aerospace and/or defense industries Products that are hot forged, aluminum casted or hot stamped Fasteners for aerospace industry Dispensers or closure systems for the packaging industry Coolers suited for oil and gas compression/storage Engine instrumentation and control electronics Energy measuring products and metering systems Progressing Cavity (PC) pumps • B 2 B services and software companies relying on proprietary IT infrastructures within a well-defined vertical/nice market • Saa. S software providers targeting well-defined vertical markets • Back-office/finance and administrative BPO providers performing specific tasks such as payment processing, AR and AP processing and other labor-intensive tasks 12

Targeted Industries: Huron • Coffee Roasting/Distribution • Seeking add-ons for Ronnoco Coffee (based in St. Louis) • Mostly direct-store-delivery, C-Store channels, but will consider other markets • Plastic Films • Seeking add-ons for Bloomer Plastics (based in Bloomer, WI) • Highly engineered films for both industrial and consumer applications • Prefer “tuck-ins”, but will consider new locations • Short-haul Trucking (Food Grade) • Seeking add-ons for Cardinal Agri-Logistics (based in Jacksonville, IL) • Focus on liquid food-grade products (e. g. corn oil, soybean oil), but will also dry bulk food products 13

Targeted Industries: Superior • Automotive Aftermarket • Seeking add-ons for Rostra Precision Controls, Inc. (based in Laurinburg, NC) • Electronic transmission and accessory components including electro-mechanical parts, sensors, switches, solenoids and actuators • Will consider other end markets such as heavy-duty, motorcycle, off highway/recreation, etc. • User-Interface Solutions • Seeking add-ons for Nelson-Miller, Inc. (based in Los Angeles, CA) • Membrane switches, rubber keypads, graphic overlays, metal nameplates, dome arrays, touchscreens and control panels • Prefer “tuck-ins”, but will consider new locations • Gourmet Desserts • Seeking add-ons for Dianne's Fine Desserts (based in Newburyport, MA) • Frozen thaw and serve desserts sold to the foodservice industry, national restaurant chains and in-store bakeries 14

Q&A

Contact Us CASCADE PARTNERS • Mac Gerlach • (415) 596 -3127 • macg@cascade-partners. com HURON CAPITAL PARTNERS • Chris Sheeren • (313) 962 -5805 • csheeren@huroncapital. com SUPERIOR CAPITAL PARTNERS • Scott Hauncher • 313. 596. 9603 • shauncher@superiorfund. com 16