JS&K EXPERTISE

Business Know How
When Jacob Stuart & Knight Inc. was created, the concept of a takeover was not really comprehended by institutional investors, corporate managers, and the financial industry in general. There was inadequate capital for such transactions and no market for high interest debt. Although money for private equity dealings is abundant now and countless individuals and institutions can run an LBO, management teams need a partner who has more to offer than lots of capital. One of Jacob Stuart & Knight Inc.'s competitive strengths is deep industry know how that allows us to identify attractive mergers and acquisitions and to grow value though operational changes. Our investment mangers are segregated into nine primary industry groups world wide:

  Chemicals
  Consumer Products
  Energy and Natural Resources
  Financial Services
  Health Care
  Industrial
  Media and Communications
  Retail
  Technology

The professionals in each of these groups have developed a network of industry experts and an in-depth understanding of their industry's economic drivers, inherent risks, and opportunities for value creation. Each team is led by a member of the firm and staffed with other Jacob Stuart & Knight Inc. executives.

Jacob Stuart & Knight Inc.'s achievement is based on the depth and experience of our investment management group experts who have valuable experiences in a variety of backgrounds, stretching from operational roles in major companies to positions in corporate finance. Jacob Stuart & Knight Inc. is backed up by an experienced team of managing directors, directors, principals, and associates. Jacob Stuart & Knight Inc.'s investment team sources acquisitions and works with senior managers of these portfolio companies to plan ways of growing their business, determines the most favorable capital structure to support a company's business strategy, provides access to a world wide network of wherewithal that strengthen operational execution, and realizes wealth for investors when exiting or taking over a business. Jacob Stuart & Knight Inc. is convinced that creating long-standing value requires detailed industry knowledge and operational proficiency, Jacob Stuart & Knight Inc. organizes its professionals into five main industry groups. The professionals in each section have developed a network of industry experts with in-depth understanding of their businesses financial elements, risks, and areas for growth and improvement. Jacob Stuart & Knight Inc.'s relationship with its portfolio firms is usually for the long term. We commit our

own funds to nearly every transaction and partner with senior management, who invest a substantial portion of their own net worth in their company. Jacob Stuart & Knight Inc. investment managers are proactive board members who know that managers need operational autonomy. We require that the managers of our collection of portfolio companies own the results of their decisions.

Jacob Stuart & Knight Inc. companies assume manageable amounts of debt that let them invest for growth and weather economic slumps. The firm's business managers work closely with management to expand operating budgets that support research and development, capital spending, and mergers and acquisitions. Our business team of experts adhere to the highest ethical values, and our expanding global presence is constructed upon a philosophy that embraces the cultures of the different geographical locations in which we operate. Jacob Stuart & Knight Inc. is not a broker dealer brokerage firm and we do not deal with individual investors or stockbroker representatives for investments in the stock market. Jacob Stuart & Knight Inc. truly covers the world of merger and acquisition and merchant banking.