Service OverviewService Overview

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Company SummaryCompany Summary

Our MissionNotch Partners serves the buyout community exclusively.

We enhance investment returns by cultivating client relationships with CEO-level executives whose experience and contacts drive profitable deal activity.

Value Proposition1) Management talent for client deals in-process which

lack appropriate leadership2) Executive expertise for idea vetting, due diligence

consulting, boards of directors/advisors, etc.3) Talent pipeline for existing and future portfolio

companies4) Proprietary deal flow

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Our BusinessOur Business

ExecutiveProgram

Development

Client Driven

PortfolioSearch

ClientDrivenDeals

Executive DrivenDeals

Through seminars, workshops and proprietaryworktools, Notch identifies and works with“Backable” CEO’s to develop viable deal situations. Deals may be proprietary or part of auction processes.

Typically within a week’s time, Notch identifies, screens and introduces potential CEO’s, BOD members or consultants who provide valuable insights and angles to Clients on new deal situations.

Leveraging our experience withover a hundred PE firms, Notch assistsits clients to develop and execute formalized executive programs which are suited toeach firm’s unique needs.

Notch conducts executive searches forCEO’s, CFO’s and other members of toplevel management. Typically Notch searches are discreet and completed in far less time than those done by traditional recruiters.

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Our PartnersOur Partners

Andrew ThompsonAndrew Thompson Managing Director, Primedia Managing Director, Primedia

VenturesVentures Consultant: McKinsey & Co.Consultant: McKinsey & Co. Executive/board of several Executive/board of several

private equity-backed private equity-backed companiescompanies

HBS, DartmouthHBS, Dartmouth

Mei-Mei TuanMei-Mei Tuan Founding Partner, MFounding Partner, M22

Associates, strategic Associates, strategic consultancy for private equity consultancy for private equity firms and portfolio companiesfirms and portfolio companies

Investment banker: Goldman Investment banker: Goldman Sachs, Bank of AmericaSachs, Bank of America

COO/CFO of Sierra Club COO/CFO of Sierra Club Foundation and S.F. Food Foundation and S.F. Food BankBank

HBS, WellesleyHBS, Wellesley

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Bringing Sponsors Bringing Sponsors and Targets Togetherand Targets Together

FinancialSponsor

Target

Sponsors need . . .

• Industry knowledge• Backable CEO & team• Solid go-forward plan• An edge in bidding

processN

otch

Par

tner

s

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How Notch Clients BenefitHow Notch Clients Benefit

• Ability to pursue deals which:Ability to pursue deals which: Are outside of client’s industry comfort zoneAre outside of client’s industry comfort zone have weak incumbent managementhave weak incumbent management have planned management turnoverhave planned management turnover

• Increased due diligence manpower in the form of Increased due diligence manpower in the form of inexpensive / free input from operating expertsinexpensive / free input from operating experts

• Reality-check for analysis and forward projectionsReality-check for analysis and forward projections Proprietary deal flow and/or proprietary angles on Proprietary deal flow and/or proprietary angles on

auction dealsauction deals Resource for evaluating deal hypotheses before Resource for evaluating deal hypotheses before

devoting resources to deal sourcing / evaluationdevoting resources to deal sourcing / evaluation

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ProprietaryDeal

InvestmentThesis

Auction

Executive Qualities We Seek

Client-initiated:

• Deal-capable CEO with “perfect fit” background

• Industry expert

• Willing to vet thesis• Time/capacity to help

source deals• Potential CEO

• Capable of developing well-informed view of the deal after review of OM

• Available to discuss deal with investor

• Open-minded w/regard to mgt/board role or consulting

Notch-initiated

• Deal-committed CEO with proprietary deal

• Appropriate operating background

• CEO not in “job seeking” mode

• Thesis is a good match to exec background

• Proven willingness to approach targets

• Same

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Cultivating Executive RelationshipsCultivating Executive Relationships

Misdirectedactivity

Poor follow through

Misalignedexpectations

Inadequateunderstanding ofPE firms

Determinepotential mutual interest areas

Establishinv. thesisand identify possible targets

Initial contactwith private equity firm(s)

Follow onmeeting(s) usually withother partners

Determinerelationshipparameters

Pursue dealopportunities in partnership

Meeting logisticsInitiate contact

Help refine investment thesis Maintain feedback loop

Intermediate innegotiations

Assist on presentations

Provide guidanceon interaction

Align expectations

Common Pitfalls:

Notch Involvement with Executives:

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Notch Partners Core CompetenciesNotch Partners Core Competencies

Rapid understanding of industries and deal Rapid understanding of industries and deal situationssituations

Very targeted searchesVery targeted searches Identification of true “Deal Executives”Identification of true “Deal Executives” Development of Deal Executives and compelling Development of Deal Executives and compelling

deal targetsdeal targets Cultivation of deep executive relationships Cultivation of deep executive relationships Execution within tight deal timeframesExecution within tight deal timeframes Bringing knowledge of private equity industry to Bringing knowledge of private equity industry to

the executive cultivation processthe executive cultivation process

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Notch vs. Traditional Search FirmsNotch vs. Traditional Search Firms

Search Firms

• Work with Job Seekers

• Several month process

• Focused on job openings

• Work on a transactional basis

• Large retainers

Notch Partners

• Work with Deal Executives

• Initial exec meetings in ~1 week

• Focused on enabling deals

• Work on a relationship basis

• Success-fee orientation

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Notch ExecutivesNotch ExecutivesTypical ProfileTypical Profile

• 20-30 years experience in focus industry, with 5-20-30 years experience in focus industry, with 5-15 years in “chief executive” role15 years in “chief executive” role

• Significant operational track record, large P&LSignificant operational track record, large P&L

• M&A, post-merger integration, turnaround and/or M&A, post-merger integration, turnaround and/or PE experiencePE experience

• Active in deal flow, with one or more current Active in deal flow, with one or more current deals, sometimes proprietarydeals, sometimes proprietary

• Able to pull together key executives to lead a Able to pull together key executives to lead a company post-deal if neededcompany post-deal if needed

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What We Look for in a ClientWhat We Look for in a Client

• A mix of opportunism and hypothesis-A mix of opportunism and hypothesis-based deal-sourcingbased deal-sourcing

• An interest in management/board An interest in management/board enhancement as a possible differentiating enhancement as a possible differentiating capability vis-à-vis other investorscapability vis-à-vis other investors

• Willingness to collaborate with a Willingness to collaborate with a committed Deal Executive to refine committed Deal Executive to refine concepts and explore targetsconcepts and explore targets

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Starting a Productive Starting a Productive Relationship with NotchRelationship with Notch

• Determine initial set of 2-4 hypotheses or industry areas Determine initial set of 2-4 hypotheses or industry areas upon which to collaborate, plus opportunistic deal upon which to collaborate, plus opportunistic deal situations as they arisesituations as they arise

• Incorporate Notch into updates on incoming client deal Incorporate Notch into updates on incoming client deal flowflow

• Designate a senior team member as primary interface Designate a senior team member as primary interface • Set aside 30+ minutes for weekly update meeting/call Set aside 30+ minutes for weekly update meeting/call

with Notchwith Notch• Deal flow updates – from Notch and from ClientDeal flow updates – from Notch and from Client• Status update on any executive relationships in progressStatus update on any executive relationships in progress• Any evolution in industry focus, investment hypothesesAny evolution in industry focus, investment hypotheses

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Building the Notch NetworkBuilding the Notch Network

Speaking engagements to executive groups

Ad placements in magazines and trade publications

Industry databases, and directories

Networking events

Word of mouth referrals fromNotch Network and other executives

Referrals from our clients

Reaching out on a one-to-onebasis

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Deal Executive DefinedDeal Executive Defined

• Visionary CEO-level leaderVisionary CEO-level leader• Seeking to complete an acquisition and lead the Seeking to complete an acquisition and lead the

resulting companyresulting company• Desires partnership with a financial sponsorDesires partnership with a financial sponsor• Has a clear sense of how to create value in the sector he Has a clear sense of how to create value in the sector he

or she is targetingor she is targeting• Deep experience in industry of target company(ies)Deep experience in industry of target company(ies)• Proactively seeking to identify deal opportunities which Proactively seeking to identify deal opportunities which

he/she can bring to the financial sponsor he/she can bring to the financial sponsor

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Client FeedbackClient Feedback

Working closely with Notch Partners has added a new dimension Working closely with Notch Partners has added a new dimension to our business. We depend on Notch to get an early leg up in deal to our business. We depend on Notch to get an early leg up in deal situations and introduce us to executives who can add value during situations and introduce us to executives who can add value during the pre-and post-acquisition phase. Their executives have helped the pre-and post-acquisition phase. Their executives have helped us get smart on industries, companies, and specific situations, and us get smart on industries, companies, and specific situations, and as a result, we have become more efficient and effective on a wider as a result, we have become more efficient and effective on a wider variety of transactions.variety of transactions.

- AEA Investors- AEA Investors

Notch provides a competitive differentiator that few firms haveNotch provides a competitive differentiator that few firms have……their timeliness their timeliness and flexibility are outstanding. Working with Notch has fundamentally changed and flexibility are outstanding. Working with Notch has fundamentally changed our approach to the deal business.our approach to the deal business.

- Reliant Equity Investors- Reliant Equity Investors

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More Client FeedbackMore Client Feedback

Notch consistently introduces us to quality, deal-savvy executives to Notch consistently introduces us to quality, deal-savvy executives to

pursue new deal opportunities or to assist in diligencing new industries. pursue new deal opportunities or to assist in diligencing new industries.

They have a feel for which executives are They have a feel for which executives are ““backablebackable”” and provide real and provide real

value to us in screening qualified individuals. value to us in screening qualified individuals.

- Cortec Group- Cortec Group

Their partnersTheir partners’’ unique backgrounds equip them to quickly identify and unique backgrounds equip them to quickly identify and

evaluate entrepreneurial executives who can lead a deal to closing.evaluate entrepreneurial executives who can lead a deal to closing.

- Harvest Partners- Harvest Partners

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Executive PerspectivesExecutive Perspectives

““Notch uses their unique insight to harmonize the objectives of private Notch uses their unique insight to harmonize the objectives of private equity with those of executives pursuing and investment thesis, to the equity with those of executives pursuing and investment thesis, to the benefit of all the parties. I am not aware of another firm that has had benefit of all the parties. I am not aware of another firm that has had the vision to take on this important role.the vision to take on this important role.””

- Robert Isen, - Robert Isen, CEO Allied Extruders, Inc.CEO Allied Extruders, Inc.

““I have not experienced anything like working with Notch Partners in I have not experienced anything like working with Notch Partners in my entire career. They have a remarkable talent for putting together my entire career. They have a remarkable talent for putting together personality, chemistry, skills, interests, and opportunity to make an personality, chemistry, skills, interests, and opportunity to make an extraordinary match; they are not just filling a position. I go out of extraordinary match; they are not just filling a position. I go out of my way to introduce people to Notch Partners.my way to introduce people to Notch Partners.””

- - Adam KleinAdam Klein Executive Vice PresidentExecutive Vice President EMI MusicEMI Music

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Executive PerspectivesExecutive Perspectives

““From conceptualizing an investment thesis and developing value From conceptualizing an investment thesis and developing value creation strategies to identifying investors raising financing, Notch creation strategies to identifying investors raising financing, Notch works closely with executives every step of the way. In todayworks closely with executives every step of the way. In today’’s tough s tough environment, partnering with Notch significantly increases the environment, partnering with Notch significantly increases the probability for an executive to get a deal done with private equity.probability for an executive to get a deal done with private equity.””

- Doug Atkin - Doug Atkin President and CEO, Majestic ResearchPresident and CEO, Majestic Research

““Notch offers distinctive value in 3 ways:Notch offers distinctive value in 3 ways:-An unmatched understanding of entrepreneurial operating executivesAn unmatched understanding of entrepreneurial operating executives-Exceptional insight and competence to define and structure a complex Exceptional insight and competence to define and structure a complex career movecareer move-A dazzling array of contacts across sectors. They know who to call A dazzling array of contacts across sectors. They know who to call and who you should call.and who you should call.””

- - C.J. KettlerC.J. Kettler CEO Lime MediaCEO Lime Media

2020

Active Industry SectorsActive Industry Sectors

• Consumer ProductsConsumer Products• Business Services / OutsourcingBusiness Services / Outsourcing• MediaMedia• Industrial ManufacturingIndustrial Manufacturing• Financial ServicesFinancial Services• Health CareHealth Care• RetailRetail• Specialty ChemicalSpecialty Chemical . . . and others. . . and others