SCG_merchant

In certain cases, Spectrum acts as a merchant banker, co-investing alongside its clients
and other investors. Generally, Spectrum will undertake a principal’s role when one of its
partners has a strong base of knowledge and experience in the client's industry and
where the firm believes that the client will benefit
significantly from Spectrum’s ongoing involvement at
the Board level. Our investment approach is one of
partnership: we think and act like owners. We are
good partners with financial expertise in search of
managers who are uncommonly good at what they
do and whose companies have the potential for
rapid growth.

Our merchant banking transactions can take the form
of a recapitalization as an ideal solution for an owner
who wants to achieve partial liquidity while retaining
the upside of a continued investment in the company on a tax-deferred basis. For
managers who are not yet owners, partnering with Spectrum provides the opportunity to
invest in their company and participate in an attractive option/profit sharing program.

Spectrum believes in management continuity. Management’s duties the day after a
transaction with Spectrum will be very similar to the day before. Our goal is to partner
with highly capable management. We focus on adding value by assisting in corporate
development and strategy and leave the operations to management.

The professionals at Spectrum are experienced in corporate and strategic development,
mergers and acquisitions and corporate finance. As an “outsider” with extensive
experience analyzing and helping to grow companies in a variety of industries, we work
with our management teams to: (i) identify opportunities for improved growth, profitability
and return on capital, (ii) originate, structure, fund and execute strategic acquisitions, and
(iii) institute best practices by benchmarking companies against other portfolio
companies and other businesses both inside and outside of the industry.


"We went from a successful transaction with Spectrum to an ongoing relationship because, quite simply, they continue to add value."

	Jeff Kramer, CEO, and Hamish Fordwood, CFO Prima Marketing LLC/ 7-Eleven Denver


		© Spectrum Capital Group, LLC. 2005. All Rights Reserved.