ACQUISITIONS - HBC

Contact information:

Mr Christopher Hess-WęgrzeckiM: +48 790 644 717 (English&German) E: office@hessbusinessconsulting.infoSkype: hess-chris www.hessbusinessconsulting.info

AcquisitionsAcquisitions of Principal or privately held companies, with Joint Venture Equity Partners or management Executives.Hess Business Consulting is not industry-specific and is highly experienced in a wide variety of Companies and Real Estate-related Ventures including Hotels and Resorts. We look at where a company is in its life cycle and assess the factors that affect the growth of its market segment and the ability of the company to increase market share and profit margins. Our interest is in three types of transactions:

1. Small to Mid Size Market Niche CompaniesWe prefer companies that have demonstrated strong growth and are capable of sustaining a 15% to 20% earnings increase per annum for 3 years to 5 years after acquisition. Pretax earnings for the latest 12 months should be at least $250,000. Typically these are companies with low asset bases in relation to shareholder value and that, because of their growth, consume capital. Thus we seek to provide a capital structure that addresses not only the acquisition but the continued financial requirements of a growing business. When and where appropriate, we will invite the retention of an equity interest by the seller(s) or key management. This is an attractive incentive for owners/managers seeking personal liquidity but wishing to remain active in the business and thus benefit from future equity appreciation.

2. Industry consolidationOur objective is to focus on companies who can serve as the nucleus to add related businesses. Usually these are in fragmented industries where consolidation can complement a company's competitive position, improve customer service and decrease product or service cost.

3. Under-performing Companies, Turn around or Chapter 11 OpportunitiesThe 1980's and 1990's spawned excesses of financial leverage in a recession environment. We believe there are consequent opportunities to achieve superior investment returns in under performing, turnaround and Chapter 11 companies. Unlike market niche companies, purchase prices for transactions in this category should bear a reasonable relationship to asset value. Our preference in this category is for companies that have revenue in excess of $4 million in the latest 12 months.

4. Acquisition & Management FocusIn all of the three above-mentioned categories, our focus is to identify such companies that have the potential for significant profit improvement. Our procedure is to provide strong incentives and equity ownership for remaining management within the target company. Our experience shows that companies produce success because of the quality of their management. Consequently, we participate as active advisors and directors and work with management to establish realistic strategic and operational objectives. Once these goals are established, the company’s management is responsible for all day-to-day business decisions.