Capital PartnersCHB

W H A T we do be s t

C H B C A P I T A L P A R T N E R S was founded with one

objective — provide closely held and family owned businesses

with the equity capital and expertise required for smooth

ownership transitions and sustained growth.

We know that to succeed we must understand the complex

characteristics of ownership transitions within closely held

businesses. We must forge strong partnerships with ongoing

management teams and shareholders, and we must bring

financial resources and expertise to support achievement of

the company’s growth objectives.

The principals at CHB have, together, more than 50 years of

investing, management consulting and operating experience.

We have direct personal knowledge of closely held and family

owned business environments. We have a strong track record of

working with management teams in manufacturing, distribution

and service industries. And, we have the ability to commit

significant amounts of investment capital.

Investing in and working alongside management teams and

shareholders to achieve ambitious objectives is what we do best.

We actively seek opportunities to put our resources to work

for management teams and shareholders who know what

they do best.

C O M P E T I T I O N

When David Jacobs, president and

founder of Spyder Active Sports, Inc. began

looking for capital to support his ambitious

growth plans, his financial advisors intro-

duced him to CHB Capital Partners.

“I had a lot of trepidation about bringing a

private equity firm into my business

because of the stories I had heard about

strong arm tactics and loss of control,” says

Jacobs. CHB ended up making a significant

minority investment in Spyder that allowed

Jacobs to maintain control of his company.

“They are great partners,” says Jacobs.

“They suggest instead of demand and they

are ready and willing to help.”

CHB also added a new dimension to

Spyder. “They bring a level of expertise in

financial negotiations, strategy, business

planning and market analysis that we have

not had access to before,” says Jacobs.

Spyder Active Sports, Inc. is a leading

supplier of technical apparel and

accessories for skiing, snowboarding and

other active outdoor activities. They have

sponsored the U.S. Ski Team since 1988

and their signature web print racing suits

can be seen on World Cup and Olympic

ski racers around the world.

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W E L O O K F O R O P P O R T U N I T I E S to back

strong management teams and shareholder groups in

successful businesses. These businesses may require

outside equity capital for a variety of reasons. At

CHB we focus on two – ownership transition and

growth. Ownership transition situations include

providing capital to the business to buy in share-

holders, supporting a management team in buying

out existing owners and recapitalizing the company to

allow some owners to exit and new management

owners to come in. Growth situations include

providing capital for acquisitions, funding new

product development or new market entry,

supporting increased capital expenditures and

providing additional working capital.

Although most of our transactions would fit into

one of these two categories (and in many cases

include aspects of both), we occasionally partner

with companies whose needs extend beyond the

boundaries of our traditional investment focus.

Every investment CHB makes is tailored to fit the

specific needs of the business, its owners and its

management team.

B U I L D I N G par tnerships

“ T H I S Y E A R O U R S A L E S A R E U P 2 7 % I N A M A R K E T W H E R E

O V E R A L L S A L E S A R E D O W N 2 0 % . S O W E ’ V E T A K E N

S I G N I F I C A N T M A R K E T S H A R E F R O M O U R C O M P E T I T O R S .

W E C O U L D N O T H A V E D O N E T H A T W I T H O U T C H B ’ S

I N V E S T M E N T O F C A P I T A L A N D E X P E R T I S E . ”

D A V I D J A C O B S , F O U N D E R A N D C E O

S P Y D E R A C T I V E S P O R T S , I N C .

B O U L D E R , C O

Productive partnerships are the basis of our success

C H B W O R K S A L O N G S I D E owners and

managers of closely held and family owned businesses

as an active partner with considerable financial and

management expertise. This participation can take

many forms. In one situation, we worked with key

managers to develop an approach for entering a new

market. In another situation, we worked with plant

level production staff to re-engineer production

processes to free up additional capacity. In yet

another situation, we worked with a small team of

senior managers to develop and implement an

acquisition strategy. And, in most situations, we

work to bring more attractive bank financing to the

table to support the company’s growth objectives.

Like our management partners, we have seen and

done a lot. Look at our experience. It differs from a

lot of private equity firms for a reason. At CHB we

are fully prepared to get our hands dirty. We expect

to do whatever it takes to support our partners in

achieving their objectives. However, we do not plan

to participate in day-to-day operations. Instead, our

partners view us as an extra resource to help make key

strategic, operating and financial decisions. We work

hard to make sure we do not let them down.

At the end of the day, our success comes from our

partners’ success. By bringing to our investments

years of strategic, operating and financial expertise,

in addition to capital, we hope to help make

one plus one equal at least three.

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W H Y C H B i s di f ferent

S Y N C H R O N I C I T Y

“Nothing competes with brain power

in the high-tech world,” says Dick Kallage,

president and CEO of Champion

Technologies, Inc. “CHB was the only

investor out of the 50 firms we inter-

viewed who could figure out our business

without 25 years of experience in the

high-tech industry. I couldn’t find an

investment firm in New York or Chicago

who went out of the way to understand

our industry like CHB did,” says Kallage.

CHB sits on Champion’s Board of

Directors, helps develop Champion’s

strategic plans and serves as an in-house

consulting firm. “They also let our

management team run the business –

because that’s what we do best. I don’t

have to look over my shoulder every five

minutes,” says Kallage.

Champion is a major U.S. manufactur-

er of frequency control devices for wireless

and wireline communications networks.

“ C H B A D D S D E P T H T O O U R O R G A N I Z A T I O N . F O R E X A M P L E ,

T H E Y H E L P E D U S D E S I G N A S U C C E S S F U L S T R A T E G Y F O R

E N T E R I N G A H I G H G R O W T H M A R K E T T H A T W E L A C K E D T H E

R E S O U R C E S T O D O O U R S E L V E S . ”

D I C K K A L L A G E , C E O

C H A M P I O N T E C H N O L O G I E S , I N C .

F R A N K L I N P A R K , I L

Value added in addition to capital

A T C H B W E S E E K I N V E S T M E N T

opportunities where we can back strong management

teams and shareholder groups in well-established busi-

nesses that have successful track records. We will

invest in either privately owned or publicly traded

companies. We do not have strict industry preferences

but will avoid industries where management has

limited control over the elements that drive financial

success. We invest between $2 million and $10

million in equity capital, although we have the ability

to invest above this level if needed. Under most

circumstances, CHB acquires between 20 and 80

percent of a company’s equity, with managers and

other shareholders retaining the rest. We normally

hold our investments for a period of three to six years.

The ideal profile for a CHB partner includes

the following:

• Annual revenues in excess of $20 million

• Strong management in place

• Consistent earnings history

• Potential for above-industry-average growth

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A P R O F I L E of our ideal par tner

B U I L D I N G O N S U C C E S S

“CHB has been instrumental to the

company’s success,” says Dick Rotto,

president and CEO of Trussway, Ltd.

“They helped us develop and implement

a new infrastructure for our business,

improve our operations and start an

acquisition program.”

CHB later sold its investment in

Trussway. “I would welcome a call from

anyone that would like to know what it’s

really like to be partners with CHB – from

the initial contact through to the sale of

their investment,” says Rotto.

Trussway, Ltd. is the nation’s largest

manufacturer of factory-built roof and floor

trusses, wall panels and other structural

components for new single family and

multi-family construction.

“ T H E Y A R E H A R D W O R K I N G , H O N E S T, A S T U T E A N D P O S S E S S

T H E H I G H E S T D E G R E E O F P E R S O N A L I N T E G R I T Y, B U S I N E S S

K N O W L E D G E A N D P R O F E S S I O N A L I S M . ”

D I C K R O T T O , F O U N D E R A N D C E O

T R U S S W A Y, L T D .

H O U S T O N , T X

Creating the right fit

P L E A S E F E E L F R E E T O C A L L U S

to discuss an investment opportunity on a preliminary

basis. Subsequently, we will want to review additional

information about the opportunity such as:

• A description of the company and its industry

• Recent financial statements and projections

• A short summary of the business’ strategy and prospects

• An outline of the proposed uses for the capital sought

We will keep all material submitted strictly confidential

and return it upon request. We will respond quickly to

all proposals received.

We encourage principals, advisors and intermediaries to

contact us with appropriate investment opportunities.

H O W T O contact us

CHB Capital Partners

511 Sixteenth Street, Sui te 600

Denver, Colorado 80202

Tel. (303) 571-0100

Fax (303) 571-0114

www.chbcapital.com