Ensign-Bickford Industries, Inc.

Investment Criteria
Demonstrated, consistent earning power with attractive gross margins, operating margins, and unlevered returns on equity. Annual sales between $10 million and $200 million Gross margins of at least 30% EBITDA between $2 million and $20 million Unlevered return on equity of 10% to 15% Bolt-on opportunities with base returns below these thresholds willbe considered if they present opportunities for attractive integrationsynergies. Solid management teams. We look to support great management teams with the financial, human and other operational resources that will enable them to realize the visions they've developed for their businesses. We provide long-term financial incentives designed to encourage continued growth of the business. If CEO-level succession is a concern, we have demonstrated success in partnering with the seller to put the right transition team in place. Manufacturers of high-value added (via either proprietary intellectual property in product design or manufacturing process), highly-engineered industrial products. We like technology, but not at the cost of overly difficult to understand complexity. Businesses with defensible, leverageable differentiation whose markets or business models have high barriers to entry. Companies that are market leaders with either a number one or strong number-two market position in their respective markets or product areas, and that have longer product life cycles with low or moderate market and revenue volatility.		Existing international strength and maturity. International expansion is a priority for Ensign-Bickford. We are looking for businesses with either (1) existing international strength and maturity or (2) a strong domestic core, but with the potential to expand globally with the right support. Limited turnarounds. We generally are not in the business of turnarounds. However, if a business is closely related to an existing platform and presents a logical integration opportunity, we will consider it. Businesses that will support sustainable, through-the-cycle organic growth in excess of global GDP, as driven by steady end-market demand and not fluctuations or fads. Generally businesses in highly cyclical end-markets are not of interest. Service offering. We are attracted to businesses that have an attractive, in-demand product core, but that also drive value and differentiation (as seen by the customer) through the delivery of those products (such as through speed to market, flexible, tailored delivery, etc.) We are actively looking to identify businesses that can beused as a platform for future growth via follow-on acquisitions in the same space. Companies should have a strong ethic of fostering excellent customer relationships and intimacy by providing high-value-added, tailored solutions and service. Generally we like businesses operating in markets with a highly fragmented customer base. Candidates should have strong regional or national distribution with existing or potential for global distribution and, particularly for stand-alone acquisitions, strong organic growth potential.
Sectors of Interest EBI seeks to partner with intermediaries and principals who have identified well-defined, actionable platform investment theses. Areas currently under consideration include:
Aerospace and Defense Renewable energy Food additives and nutriceuticals, human or pet Extensions to include proteins, enzymes, yeasts, etc. Life seciences, laboratory services diagnostics testing.		Protection, safety & security Industrial niche, specialty manufacturing Water management and purification Sensor and actuation technologies
What you can expect EBI has completed numerous transactions in the secondary market across a variety of industries. Our process, while aligned with EBIs needs is also designed around the conditions important to a seller. Sellers can expect:
Rapid, fair and consistent pricing aligned with strengths and opportunities of the underlying business A fair and equitable purchase and sale agreement, consistent with market norms Comprehensive, but tightly managed due diligence		Long-term perspective - we are business operators and owners, not traders An experienced team of internal executives and knowledgeable outside advisors - ability to address complexity No games

While EBI is often involved with auctions, we believe we can offer greater value through a consultative approach that features direct negotiation. This allows transactions to be completed with greater simplicity and a higher degree of confidentiality.

Ensign-Bickford’s Corporate Development Office can be contacted at:
781-693-1870 or at corpdev@e-bind.com