INVESTMENT CRITERIA


Summary

Deal Value $3.0M - $25.0M, no minimum for add on's Equity size $1.0M - $5.0M + sub debt or secured, no minimum for add on's Returns Seeking total returns (yield + realized gains) in excess of 20% Businesses Niche businesses in manufacturing, distribution and services Geography Michigan, Mid-West and Geographies of Wingspan relationships

• We partner with people, by investing in their vision, passion and experience to grow successful companies: they must be of strong moral and ethical character, be capable at what they do and have capital at risk in the venture with our capital
• While each situation is unique, the common characteristics of the companies that Wingspan Capital Partners will consider include:
  1. Proven (capable/excellent character), equity-oriented management with capital at risk;
  2. Defensible market positions;
  3. Franchise value in the product or service supply chain;
  4. Attractive industry fundamentals;
  5. Record of consistent, predictable profits and cash flow;
  6. Scalable core competencies;
  7. Prospects for growth requiring capital, management and technology
• We generally seek to be the majority investor in our portfolio companies:
  1. We work with business owners and management to design capital structures to accommodate the interests of all stakeholders.
  2. We will purchase minority equity positions when co-investing with like-minded investment partners or owners.
  3. Management invests with us in every transaction and will always have a meaningful ownership stake.
• Wingspan’s investment objective is to invest in profitable companies that require capital to grow organically or through acquisitions, and to further build long-term capital appreciation from the investments.
• Invest in Companies with niche opportunities with meaningful barriers to entry, located in Michigan, the Mid-West and in strategically located geographic regions where we can leverage personal and professional relationships of the principals/advisors of Wingspan.
• Wingspan seeks to provide returns through distributions from operations of the portfolio companies as well as long-term appreciation through distributions of capital gains on its investments through various forms of monetization.
• Wingspan targets businesses with revenue under $25.0 million. Some investments will be made in stages based upon the achievement of milestones as well as in cases where controlling stakes are made, seller financing provided when possible.