The most meaningful aspect of any acquisition candidate is its employees. From management to staff level, employees influence whether or not a company ultimately remains successful. For that reason, Geneva focuses its search on companies with solid, “pro-employee” cultures and proven management. While we have been able to successfully recruit division executives, we prefer to maintain the management leadership within the acquired company; it provides a smoother transition within an established culture. Acquisitions are the most important component of the growth strategy of Geneva. During its history, Geneva Corporation has acquired over 30 businesses. This history of acquisitions, coupled with experience in running the related businesses, has assisted Geneva in refining its acquisition criteria. Preferred acquisition candidates will be in

distribution, services or light manufacturing sectors, having operations in the southeastern United States. Geneva has found that companies with significant service labor components help to ensure long-term success by virtue of sustainable margins and favors those business models. Further preferred attributes include established product identities and brands, protected territories, and a strong company position within the market place. We invest in companies which have successfully maintained significant market share and exhibit solid growth potential. Geneva prefers traditional business models that reward the solid execution of “blocking and tackling” and in which there is limited technology risk. From a financial perspective, profitable businesses operating in the $25 - $100 million revenue range are ideal. At the end of the day, our acquisition criteria precludes some opportunities, but provides the best potential outcome, not only for Geneva, but also for the potential seller. We work with principal owners, company management or intermediaries in our search for these successful well-run businesses.