srr overview

Financial Advisory Services

Solutions...Resources...Results

InvestmentBanking

Valuation & Financial Opinions

Dispute Advisory & Forensic Services

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Mergers & Acquisitions

SRR has extensive experience in advising family-owned businesses, portfolio companies of privateequity firms and divisions of large corporate parents withregard to the sale/divestiture of middle market companies. We also advise clients relative to theirgrowth strategies and assist with the evaluation and execution of targeted acquisition transactions.

Private Market Financings

We assist clients in arranging the financing they require to pursue growth opportunities, consummateacquisitions or to address shareholder liquidity objectives and recapitalizations. We assist in arrangingfinancing for the following types of situations:

■ ■ Transaction financing■ ■ Shareholder recapitalizations■ ■ Growth financing

Distressed Transaction Advisory

We assist companies facing serious financial challenges. We are regularly involved in situations bothinside and outside of bankruptcy, including salesthrough plans of reorganization and divestiturespursuant to the Bankruptcy Code. Areas of focusinclude the following:

■ ■ Evaluation of strategic and financial alternatives

■ ■ Capital sourcing■ ■ Out-of-court restructurings■ ■ §363 sales■ ■ Debtor, creditor, equity and special

interest representations

SRR’s Investment Banking Group specializes in providing mergers and acquisitions (“M&A”) advice,

private capital raising services and other financial advisory services to family owned businesses, portfolio

companies of private equity firms and divisions of large corporate parents. We understand the challenges

involved in middle market transactions and are sensitive to the special considerations involved in these

engagements. SRR provides exceptional advisory services in the following areas:

Investment Banking

Broker-dealer services provided through Stout Risius RossAdvisors, LLC, member FINRA. All other services provided throughStout Risius Ross, Inc.

I n v e s t m e n t B a n k i n g

Strategic Advisory

We help business owners evaluate growth opportunities, the competitive landscape of their industry, long-term financing strategies,succession considerations and a variety of other matters that mayhave an impact on the business owner’s ability to maximize long-term value. Our strategic and financial assessments are customized to every situation; however, they typically include acombination of the following:

■ ■ Valuation ■ ■ Growth strategies ■ ■ Competitive landscape evaluation ■ ■ Capital structure optimization■ ■ Debt and equity alternatives ■ ■ Liquidity alternatives ■ ■ Succession planning ■ ■ Transaction preparation ■ ■ Transaction timing

Our professionals

have executed M&A

and capital raising

assignments representing

over $20 billionin transaction value.

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SRR’s Valuation & Financial Opinions Group has been one of the fastest growing valuation services groups

in the country over the last two decades. Our independent advice withstands scrutiny from shareholders,

bondholders, the SEC, IRS, or counterparties to a transaction. We have advised Corporate Boards,

special transaction committees, independent trustees, management and other fiduciaries of both Fortune

500 and middle market public and private companies. We offer a full range of valuation services, including:

Valuation & Financial Opinions

Business Valuation

IntangibleAsset Valuation

Real Estate and Machinery & EquipmentAppraisal


V a l u a t i o n & F i n a n c i a l O p i n i o n s

SRR has been one of

the fastest growingvaluation services groups

in the country over the

last two decades.

SRR provides valuation services in the following areas:

Transaction Support and Financial Opinions

■ ■ Fairness opinions■ ■ Solvency and capital adequacy opinions■ ■ Pre-acquisition and divestiture valuation assessments■ ■ Joint venture contribution analyses■ ■ Going-private transactions■ ■ Bankruptcy proceedings■ ■ Merger exchange ratio determinations■ ■ Sale-leaseback valuations■ ■ Tangible asset valuations for collateral financing■ ■ Related party transactions

Valuations for Financial Reporting

■ ■ Purchase price allocations (SFAS 141R, IFRS 3, IAS 38)■ ■ Goodwill impairment testing

(SFAS 142, IAS 36, IAS 38)■ ■ Long-lived asset impairment (SFAS 144, IAS 36)■ ■ Fair Value measurements (SFAS 157)■ ■ Employee stock options and restricted stock

(SFAS 123R, IFRS 2)■ ■ Fresh start accounting (SOP 90-7)■ ■ Fair value of financial investments (SFAS 107, IAS 32)■ ■ Private equity portfolio valuations

Valuations for Corporate Tax Planning

■ ■ Worthless stock elections (IRC 165)■ ■ Bad debt deductions (IRC 166)■ ■ Inter-company transfer pricing

(IRC 482 and IRC 6662)■ ■ Apportionment of interest expense

(IRC 861 and IRC 864)■ ■ Deferred compensation (IRC 409A)■ ■ Property tax appeal■ ■ Cost segregation studies (IRC 1245 and IRC 1250)■ ■ Tangible asset and intellectual property charitable

contributions (IRC 170)■ ■ Net operating loss / Foreign tax credits

(IRC 382 and IRC 384 / IRC 901-907 and IRC 960)■ ■ Transfer of foreign stock (IRC 367)■ ■ Divestiture allocations / Legal entity allocations■ ■ Cancellation of debt (IRC 108)

Corporate Development Support Services

■ ■ Target company valuations■ ■ Industry research■ ■ Market multiple analyses■ ■ Internal rate of return and cost of capital analyses■ ■ Pre-emptive purchase price allocations

(SFAS 141R / EPS impact)■ ■ Accretion / dilution models■ ■ Synergy assessment■ ■ Board materials and related reports■ ■ Tangible asset valuations

ESOP & ERISA Advisory Services

Pre-ESOP Planning

■ ■ Assessment of alternative strategies ■ ■ ESOP feasibility study ■ ■ Preliminary valuation

ESOP Formation

■ ■ Transaction structuring and negotiating ■ ■ Capital raising ■ ■ Initial valuation ■ ■ Fairness and solvency opinions

ERISA Compliance

■ ■ Annual valuations ■ ■ Follow-on transactions ■ ■ ESOP loan restructuring ■ ■ Trustee advisory ■ ■ Litigation support and expert testimony

Exit

■ ■ Merger and acquisition advisory ■ ■ Recapitalizations ■ ■ ESOP termination ■ ■ Fairness opinions

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V a l u a t i o n & F i n a n c i a l O p i n i o n s

Succession and Shareholder Planning

■ ■ Business valuations■ ■ Discount studies (FLP / LLC)■ ■ Expert testimony■ ■ Real estate appraisals■ ■ Fractional interest valuations■ ■ Restricted stock and blockage discount opinions■ ■ Preferred interest valuations■ ■ Carried interest valuations■ ■ Buy-sell agreement consulting ■ ■ Phantom stock plans■ ■ C to S conversions ■ ■ Stock redemptions / buybacks

Asset Appraisal Services for Financing

■ ■ Mortgage underwriting ■ ■ Sale-leaseback transactions ■ ■ Real Estate Owned (REO) and foreclosure valuations

Other Real Estate and Machinery &Equipment Valuation and Advisory Services

■ ■ Market and/or feasibility studies ■ ■ Valuation for insurance placement purposes ■ ■ Lifing studies ■ ■ Obsolescence studies ■ ■ Fixed asset verification studies ■ ■ Cost segregation studies

Expert Valuation Opinions

■ ■ Shareholder disputes ■ ■ Minority shareholder oppression actions ■ ■ Family law matters ■ ■ Bankruptcy proceedings■ ■ Intellectual property valuations ■ ■ Condemnation, zoning, and land use disputes■ ■ Property tax disputes■ ■ IRS disputes and tax litigation■ ■ Other valuation issues / disputes

Our valuation

conclusions

withstand scrutiny.

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Pre-litigation Consulting

From the gathering of evidence to support or refute aclaim to the assessment of facts and strategic options,SRR’s experience, technical competency and creativityare assets to our clients as they strive to evaluateoptions and make decisions regarding an appropriatecourse of action.

Discovery Assistance

From ensuring the request and receipt of relevant information to ensuring compliance with the requirementsof a subpoena, document request or other inquiry, ourprofessionals work with clients and their counsel tomanage and streamline the discovery process.

Analysis and Assessment

From economic damage analysis to forensic accountingto valuation services, our experts are adept at evaluatingall available evidence to present an assessment ofdamages based on a solid foundation of financial theory,economic theory, technical competence and independentreview of the facts of a matter.

Opinions and Consultations

SRR’s experts are industry specialists with experiencein the court room and alternative dispute resolutionforums. Our professionals are retained to provideexpert reports and testimony in a variety of venues.

Parties to disputes and their counsel require consultants and advisors who can demonstrate a breadth

and depth of experience, specialized industry knowledge, efficient case management skills and responsive

client service. At SRR we understand, embrace and consistently demonstrate these demands to our

clients. We are able to assist our clients from the onset of a matter through formal resolution.

Dispute Advisory & Forensic Services


D i s p u t e A d v i s o r y & F o r e n s i c S e r v i c e s

Our cross-disciplined

approach and

experience enable us

to provide creativeand effectivesolutions.

SRR offers dispute advisory and forensic services in the following areas:

■ ■ Antitrust disputes■ ■ Bankruptcy & reorganization disputes■ ■ Commercial & business disputes■ ■ Construction disputes■ ■ Family law valuation & consulting■ ■ Fraud & forensic services■ ■ Health care disputes■ ■ Intellectual property litigation & licensing■ ■ Labor & economic disputes■ ■ Securities actions■ ■ Shareholder disputes■ ■ Transaction disputes

Our professionals provide expert analyses in the following areas:

Financial and Economic Damage Analyses

Our professionals possess a strong technical background and substantial experience in quantifying damages including dimunitionof value, lost profits, reasonable royalty, unjust enrichment, disgorgement, recission and out-of-pocket expenses. Our distinctability to assist counsel in investigating and establishing causal linksbetween events and damages through a review of industry and otherexternal forces, statistical analysis and other analytical techniquessets our team apart.

We have specialized expertise in providing services to a variety ofindustry participants including, but not limited to, high-technologycompanies and international corporations.

Valuation Analyses

SRR provides comprehensive valuation services, including not onlythe various capital components of a business enterprise, but alsothe business’ underlying assets, both tangible and intangible.

Forensic Analyses

SRR brings a full complement of technical expertise, industry competence, real world experience and professional standards ofconduct to every client engagement involving demand for investigativeservices and forensic accounting expertise. Our team offers a fullrange of services including:

■ ■ Internal investigations ■ ■ Computer forensics ■ ■ Forensic accounting

RepresentativeClient List

www.srr.com

SRR has served clients across a wide range of industries with locations around the globe. Our

professionals continue to deliver sophisticated solutions for a diverse client base, which includes, but is

not limited to, the following:

Corporate Clients


Actuant Corporation

Affinia Group

Alaven Pharmaceutical LLC

Aleris International, Inc.

Alion Science and Technology Corporation

American Axle & Manufacturing, Inc.

ANSYS, Inc.

Arcadia Resources, Inc.

Arcelor

Archer Daniels Midland Company

ArvinMeritor, Inc.

Aspen Marketing Services

Autoliv ASP Inc.

Axle Tech International

Baird & Warner

Blackboard Inc.

Blue Heron Paper Company

BlueCross BlueShield Association

Borden, Inc.

BorgWarner, Inc.

Bruegger's Enterprises, Inc.

Buehler Food Markets, Incorporated

Calgon Carbon Corporation

Campbell Grinder Company

Carhartt, Inc.

Celadon Group, Inc.

Chrysler LLC

Citigroup Inc.

CMS Energy Company

Compuware Corporation

CSK Auto, Inc.

CVS Caremark Corporation

Dawn Food Products, Inc.

Dean Foods Company

Delphi Corporation

Deltek, Inc.

Detroit Entertainment, L.L.C.

Diebold, Incorporated

Discount Drug Mart, Inc.

Domino's Pizza LLC

Dorsey Schools

DTE Energy Company

DURA Automotive Systems

Empire Home Services, LLC

Engineering and Software System Solutions, Inc.

Esmark

Federal-Mogul Corporation

Flint Group

Focus Products Group, LLC

Ford Motor Company

Forsythe Solutions Group Inc.

Fosbel Inc.

Freudenberg-NOK

Gallo Displays, Inc.

General Motors Corporation

Gordon Food Service

Great Lakes Gas Transmission Company

Greenheck Fan Corporation

Guardian Industries Corp.

Harbor Industries, Inc.

Hayes Lemmerz International, Inc.

Heartland Dental Care, Inc.

Heartland Food Corp.

Herman Miller, Inc.

Hyland Software, Inc.

Inalfa Roof Systems

Intermet Corporation

International Hardcoat Inc.

IPC International Corporation

IPEC Holdings Inc.

John Hancock Financial Services, Inc.

Kaydon Corporation

Kirkwood Industries, Inc.

Kmart Corporation

Las Vegas Sun

Lear Corporation

Learning Care Group, Inc.

Leica Geosystems, Inc.

Linamar Corporation Inc.

Lumitex, Inc.

Martin Marietta Materials Inc.

Masco Corporation

McCarthy Holdings, Inc.

Meridian Automotive Systems, Inc.

Metaldyne

Midland Cogeneration Venture Limited Partnership

MindLeaders.com, Inc.

MotorCity Casino

Motorola

MPW Industrial Services

MTD Holdings Inc.

Neeneh Enterprises Inc.

Nestlé S.A.

Neustar, Inc.

Newmar Corporation

Noble International, Ltd.

Ohio Cat

Palace Sports & Entertainment

Peerless Steel Company

Penske System, Inc.

Penton Media, Inc.

Perrigo Co.

Phoenix International Holdings, Inc.

Pioneer Surgical Technology

Polar Corporation

Pomeroy IT Solutions

Porsche Enterprises Inc.

Preferred Homecare

ProQuest Company

RadioFirst plc

Retail Ventures, Inc.

Richland Gordon & Company

Rite Aid Corporation

Robert Bosch LLC

RPM International Inc.

Safe Auto Insurance Company

Serra Automotive Group

Siemens AG

Smiths Aerospace Limited

Spartan Motors, Inc.

Spartan Stores Inc.

Spirit Airlines, Inc.

SRA International Inc.

State Farm Mutual Automobile Insurance Company

Steelcase Inc.

Stoneridge, Inc.

Symbol Technologies

Tele Atlas

The Clorox Company

The Detroit Lions, Inc.

The Dow Chemical Company

The J.M. Smucker Company

The Oilgear Company

The Taubman Company LLC

ThyssenKrupp Budd Company

TI Automotive

Tippmann Sports LLC

TransDigm Group Incorporated

TRW Automotive Inc.

UC Investors, Inc.

UGL Equis

United Rentals, Inc.

Valassis Communications, Inc.

Valeo Management Services

Visteon Corporation

Walbro Engine Management

Waxman Industries, Inc.

White Castle System, Inc.

Woodward Communications Incorporated

www.srr.com

Equity FundsAGS Capital LLC

American Capital Strategies, Ltd.

Birch Hill Equity Partners

Blue Point Capital Partners

Carlyle Group

Charterhouse Group, Inc.

Endeavor Capital Management

FdG Associates LLC

Frontenac Company

Golden Gate Capital

Hispania Capital Partners

Kirtland Capital Partners

KPS Capital Partners, LP

LaSalle Capital, LLC

Long Point Capital

Madison Capital Partners

Madison Dearborn Partners, LLC

Mason Wells, Inc.

McCarthy Group, LLC

MCG Capital Corporation

Merit Capital Partners

Monomoy Capital

Pangea Holdings Limited

Platinum Equity, LLC

Prairie Capital

Questor Management Company, LLC

Ritchie Capital Management, L.L.C.

Stonington Partners, Inc.

Sun Capital Partners, Inc.

Svoboda, Collins L.L.C.

Thayer Capital Partners

The Halifax Group

Wind Point Partners

Wynnchurch Capital

Financial InstitutionsAEGON USA Realty Advisors, Inc.

Archon Group, L.P.

Bank of America, N.A.

Capmark Finance Inc.

Carillon Advisors, LLC

CIBC

Citizens Bank

Column Financial, Inc.

Comerica Incorporated

Credit Suisse Group

Deutsche Bank AG

Fifth Third Bank

General Electric Company

Goldman Sachs Mortgage Capital, L.P.

Harris Bank N.A

Huntington National Bank

JPMorgan Chase & Co.

KeyCorp

Mercantile Bank

Metropolitan Life Insurance Company

Midland National Life Insurance Company

Northern Trust

Monroe Capital LLC

Morgan Stanley & Co., Incorporated

National Bank of Canada

New York Life Investment Management LLC

Pacific Life Insurance Company

Prudential Financial, Inc.

Republic Bancorp, Inc.

Spirit Finance Corporation

TCF Bank

The Bank of New York Mellon

The PNC Financial Services Group

Tyco International, Ltd.

UBS AG

Wells Fargo Bank

W.P. Carey & Co. LLC


Arnstein & Lehr LLP

Baker and Hostetler LLP

Baker & McKenzie LLP

Baker Botts L.L.P.

Barnes & Thornburg LLP

Benesch, Friedlander, Coplan & Aronoff LLP

Bodman LLP

Buchanan Ingersol & Rooney PC

Butzel Long

Calfee, Halter & Griswold LLP

Chapman and Cutler LLP

Clark Hill PLC

Covington & Burling LLP

Dickinson Wright PLLC

Dinsmore & Shohl LLP

DLA Piper LLP (US)

Duane Morris LLP

Dykema Gossett PLLC

Foley & Lardner LLP

Freeborn & Peters LLP

Frost Brown Todd LLC

Fulbright & Jaworski L.L.P.

Greenberg Traurig, LLP

Groom Law Group, Chartered

Hahn Loeser + Parks LLP

Hinshaw & Culbertson LLP

Hogan & Hartson LLP

Holland & Knight LLP

Honigman Miller Schwartz and Cohn LLP

Jaffe Raitt Heuer & Weiss, P.C.

Jenner & Block LLP

Jones Day

K&L Gates LLP

Katten Muchin Rosenman LLP

Kirkland & Ellis LLP

Kitch Drutchas Wagner Valitutti & Sherbrook

Latham & Watkins LLP

Locke Lord Bissell & Liddell LLP

Mayer Brown LLP

McCarthy Tétrault LLP

McDermott Will & Emery

McDonald Hopkins LLC

Miller, Canfield, Paddock and Stone, P.L.C.

Miller, Johnson, Snell & Cummiskey, P.L.C.

Morgan, Lewis & Bockius LLP

Morrison & Foerster LLP

Neal, Gerber & Eisenberg LLP

Pepper Hamilton LLP

Pillsbury Winthrop Shaw Pittman LLP

Plunkett & Cooney, P.C.

Porter Wright Morris & Arthur LLP

Quarles & Brady LLP

Reed Smith LLP

Reminger Co., L.P.A.

Roetzel & Andress

Schiff Hardin LLP

Schiller DuCanto and Fleck LLP

Schopf & Weiss LLP

Sidley Austin LLP

Sonnenschein Nath & Rosenthal LLP

Squire, Sanders & Dempsey L.L.P.

Sughrue Mion PLLC

Taft Stettinius & Hollister LLP

Thompson Hine LLP

Ulmer & Berne LLP

Ungaretti & Harris LLP

Varnum, Riddering, Schmidt & Howlett LLP

Vedder Price P.C.

Venable LLP

Vorys, Sater, Seymour and Pease LLP

Warner Norcross & Judd LLP

Williams & Connolly LLP

Winston & Strawn LLP

Law Firms

RecentExperience

Recent Experience

www.srr.com

Broker-dealer services provided through Stout Risius Ross Advisors, LLC,member FINRA. All other services provided through Stout Risius Ross, Inc.

T E C H N O L O G I E S

Circuit Service, Inc. and its subsidiaryChangzhou CSI, Ltd. have been acquired by

Sell-side Advisor

Senior revolving facility due 2012,Real estate term note due 2012, and

Equipment term note due 2012Financing provided by

Wells Fargo Business Credit

Private Financing

Acme Industries, Inc.

has undergone a shareholder recapitalizationwith Senior Subordinated Notes from

Shareholder Recapitalization

Valuation Services forFinancial Reporting



Fairness Opinion &Solvency Opinion

has purchased an equity interest in

as part of a recapitalization.

Fairness Opinion

Valuation Services forTransaction Advisory

Valuation Services forLoan Underwriting

Industrial Supplier

Shareholder Dispute

Financial Institution

Transaction Dispute ConsultingSubprime Mortgages

■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Va

■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic S

■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ D

has acquired

Morgan’s Welding, Inc.

Buy-side Advisor

Spectrum Plastics Molding Resources, Inc., asubsidiary of Barnes Group Inc., has been

acquired by Midwest Plastic Components, Inc., aportfolio company of Spell Capital Partners, LLC

Sell-side Advisor



has acquired

has completed a redemption

Fairness Opinion

Fairness Opinion

has been acquired by

Fairness Opinion



Mortgage Bank

Internal InvestigationMortgage Fraud

Distributor/Marketer

of Exercise Equipment

Patent Infringement Damages

Adequate Assurance Analysis

Global Automotive Supplier

QUALITY PRODUCTS FOR INDUSTRIAL ENGINES

AND CRITICAL ROTATING MACHINERY WORLDWIDE

www.srr.com

Broker-dealer services provided through Stout Risius Ross Advisors, LLC,member FINRA. All other services provided through Stout Risius Ross, Inc.

aluation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■

ervices ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■

Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■

a portfolio company of

Catalina Capital Advisors, LLC


Sell-side Advisor


Sell-side Advisor

CHARTERHOUSE GROUPPrivate Equity Investing Since 1973

has been acquired ina management buyout

a portfolio company of

Sell-side AdvisorValuation Services for

Tax Reporting


acquired

Hannibal Industries, Inc. EmployeeStock Ownership Plan and Trusthas purchased a controlling interest in

Hannibal Industries, Inc.

Fairness Opinion

Has spun off its wholly-owned subsidiary,Mastech Holding Corporation, into aseparate publicly traded company.

Solvency Opinion

Solvency Opinion


Northern Trust

General Contractor

PreferentialDistribution Analysis

Regional Hospital

Medicaid AuditDispute Consulting

General Contractor

Cost Overrun Claim

■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■

■ ■ Valuation & Financial Opinions ■ ■ Dispute Advisory & Forensic Services ■ ■ Investment Banking ■ ■ Valuation & Financial Opinions ■ ■

■■ Dispute Advisory & Forensic Services ■■ Investment Banking ■■ Valuation & Financial Opinions ■■ Dispute Advisory & Forensic Services ■■

Kifco, Inc., a portfolio company of PrairieCapital, has been acquired by its executive

management team and Owl Creek Partners, LLC

Sell-side Advisor

Senior revolving credit commitment andsenior term loan due 2010 provided by

Associated Commercial Financeand

Subordinated debt provided by

Fidus Mezzanine Capital, L.P.

Private Financing




Fairness Opinion





has completed a subordinated debt restructuring

Fairness Opinion

Wage and Hour Dispute

Regional Hospital System

Antitrust Analysis

Global Automotive Supplier

srr overview

Documents

range of valuation services

exceptional advisory

private capital

transaction support

financial assessments

billionin transaction

private companies

special transaction