The time has come to realize all of the effort a business owner has put into a business. The time has come to retire, and to sell. How and through whom does one sell a business? Prospect Partners has worked with many management teams in buying out the retiring owner of a business. We are able to provide the capital and the know-how to complete the transaction while management is able to continue to focus on what they do best – running the company. Oftentimes, a transition period is required in order to allow management the opportunity to learn, as well as to ease the owner’s own transition into retirement or into the next career phase. This transition period assures continuity for customers, vendors and employees alike. Prospect Partners works efficiently in completing these transactions, while ensuring the utmost in confidentiality and professionalism each step of the way.

Exhibit:

Prospect Partners acquired Clarence J. Venne of Philadelphia, Pennsylvania from its owners, who wanted to retire after nearly 40 years in the business. Prospect worked closely with the family to complete a transaction that met the family’s needs while providing an opportunity to continue their legacy through a management buyout of the company. Clarence J. Venne is the leading brand of marking products used in the bingo industry.

Prospect Partners has also completed similar transactions within a family structure, allowing the parent to transition company ownership to his or her children or to existing management.

Prospect Partners has completed more recapitalizations than any other transaction type. We embrace the opportunity to work with passionate entrepreneurs in expanding their business through internal opportunities or through acquisitions. By recapitalizing the business, which provides cash at closing, we provide the entrepreneur with the opportunity to realize some of the value they have created for their families today. The entrepreneur also retains the opportunity to benefit from the future growth of the business through continued ownership of a significant portion of the company after the transaction has closed.

After the closing, we work in close partnership with the entrepreneur and management team to grow the company over the next several years. Prospect Partners’ team remains active at the Board of Directors level while encouraging management to drive the day-to-day success of the business. We assist management by ensuring that the company is adequately capitalized, by actively searching for strategic acquisitions, by assisting management in recruiting key managers into the growing company, and by acting as an advisor on strategic planning.

Exhibit:

Prospect Partners recapitalized Office Resources, Inc. of Boston, Massachusetts with its owners/senior management. The transaction provided the owners with some liquidity, the company with capital to grow, and the management team with a business partner and sounding board. Prospect Partners has been a valuable and reliable partner to Office Resources, providing resources and knowledge to help the company navigate through challenges and capitalize on opportunities. Office Resources is a leading distributor of high-end office furniture in the Northeast.

Prospect Partners is focused on investing in and with experienced managers. We engage in opportunities to work closely with management to acquire companies in three situations: 1) when management is working inside of a closely held company, 2) when a large company is trying to sell a division to the division’s management team, and 3) when an experienced industry veteran wishes to work with us in acquiring a company in which industry experience is important to the success and growth of the company.

Over the course of many transactions, we have found that the one constant in successful investments is strong, focused management. In order for management teams to be effective, we work to put management in situations in which they can be successful, and encourage open dialogue through the course of transition and growth. Prospect Partners’ team remains active at the Board of Directors level while encouraging management to drive the day-to-day success of the business. We assist management by ensuring that the company is adequately capitalized, by actively searching for strategic acquisitions, by assisting management in recruiting key managers into the growing company, and by acting as an advisor on strategic planning.

Exhibit:

In 1999, Prospect Partners teamed with a successful young executive named Tom Walsh to acquire First Texas Products of El Paso, Texas. Prospect Partners provided Tom Walsh with capital, transaction expertise, and acquisition opportunities for the company, all of which have contributed to the success of the company. Since completing the initial transaction, the company has experienced unprecedented growth. The products have expanded into several new channels of distribution and the company has completed a key acquisition.

In 1999, Prospect Partners teamed with a successful young executive named Tom Walsh to acquire First Texas Products of El Paso, Texas. Prospect Partners provided Tom Walsh with capital, transaction expertise, and acquisition opportunities for the company, all of which have contributed to the success of the company. Since completing the initial transaction, the company has experienced unprecedented growth. The products have expanded into several new channels of distribution and the company has completed a key acquisition. Today, First Texas is a leading manufacturer of treasure hunting metal detectors, underground utility location and maintenance equipment, and consumer and law enforcement night vision products.