Juno Investments

Investment Strategy

Juno seeks opportunistic targets within our strategic framework -- companies that have strengths supporting the potential for future growth, but that have certain value-depressing weaknesses that will benefit from Juno’s value-added direction. The following represents Juno’s standard investment criteria it utilizes when examining acquisition targets:

Investment Size and Timing

$2 to $20 million of total equity.

Capital resources available to fund an entire investment, regardless of the state of capital markets, offering high degree of certainty in closing the deal.

Prudent utilization of leverage.

Investment Position

Lead investor with a controlling position.

Patient investors with a long-term view to fundamental business building.

Middle and Lower Middle Market

Established revenues of at least $10 million, although we exercise flexibility in this area for “special situations” and targets that have experienced unstable cash flows.

Historically profitable businesses with stable and predictable “normalized” earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $1 million.

Industrial Sector Orientation

Manufacturing and manufacturing support, including defense, medical equipment, aviation supply, infrastructure, construction supply, materials, chemicals, industrial equipment, electronic equipment, and automotive supply sectors.

Competitive Position: Unrealized Potential

Companies that have the potential for strong market positions driven by low cost structure, strong distribution network, proprietary processes or product designs and secure customer relationships. In many cases, acquisition targets will not currently have these qualities. It is the potential for achieving these positions through Juno’s assistance that can make them especially attractive investment targets.

Companies selling to national accounts and operating in mature, fragmented markets with an evident barrier of entry from competition.

Growth Potential

Potential for internal growth and/or growth through acquisition or consolidation.

Companies with the potential to increase profitability by improving manufacturing, information technology, sales and marketing effectiveness, balance sheet management, logistics and purchasing.

Special Cases and Turnarounds

Juno will consider underperforming or turnaround situations that have resulted from over leverage or cyclical industry downturn, as well as special situations, including situations involving environmental or litigation issues.

Management Opportunities

Juno evaluates the existing management team to determine appropriate ongoing management options. In certain cases a strong management team can be a plus, especially if it has not contributed to the company’s fundamental current problems. In other cases, selecting more appropriate management post-acquisition is key to Juno’s growth strategy.

We align our interests with good management. Management participates in enterprise value appreciation through profit sharing or equity stakes.

Geographic Focus

Companies headquartered in North America.