Business is unpredictable, and the one thing we know for sure is that we will face changes and challenges. To ensure success, you must rigorously measure the performance of your business. We have identified five key strategic areas to help you determine if your business will be successful in the future. They will help you get started on deriving your own solutions to the key challenges, hurdles, and problems you may face. Over the next few pages we review five (5) key strategic elements on which all business owners–CEOs– Presidents should focus to be successful.

1. Business Owner Checklist for Future Success
- M & A
www.mfsib.com

2. CONFIDENTIAL
Introduction
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Who is Midwest Financial M&A
Midwest Financial – Team
Five Key Questions Owners-CEOs Can Use to Build Future Success

3. CONFIDENTIAL 3
Working with Business Owners
Midwest Financial – M&A has over 25 years experience assisting business owners with succession plans.
We have worked with many business owners who share the same concern: How can I ensure that my business
will remain successful?
Business is unpredictable, and the one thing we know for sure is that we will face changes and challenges.
To ensure success, you must rigorously measure the performance of your business.
We have identified five key strategic areas to help you determine if your business will be successful in the future.
They will help you get started on deriving your own solutions to the key challenges, hurdles, and problems you may
face.
Over the next few pages we review five (5) key strategic elements on which all business owners–CEOs–
Presidents should focus to be successful.

4. CONFIDENTIAL
Introduction
4
Who is Midwest Financial M&A
Midwest Financial – Team
Five Key Questions Owners-CEOs Can Use to Build Future Success

5. CONFIDENTIAL 5
I. Does your business have a brand-name product or a key service upon which people or
businesses are dependent?
Market research clearly indicates that customers prefer to buy products
from familiar brands. A Nielsen’s Global New Product Innovation
Survey found that 59 percent of global respondents choose to purchase
new products from brands well-known to them, and 21 percent
observed that they purchase a new product from a brand they like.
We have found that owners with the most success in building a lucrative
brand clearly understand the requirements and desires of their
customers. They integrate their brand strategies throughout their entire
business and every contact with customers and potential customers.
These owners view branding as a window into what their company has
to offer, who they are, and why they are unique within their industry
niche.
As consumers begin to identify with you, your brand will live in the
hearts and minds of customers, clients, and prospects, and they'll
connect on an emotional level.
What is your current brand?
How does your product or key service compare to your primary
competitors within your industry niche?

6. CONFIDENTIAL 6
II. Are your profits over the past three years positive and moving in an
upward trend?
The first key metric that a business owner must know is the increase (hopefully not a decrease) in sales
and net profits from period to period: Year over Year; Quarter over Quarter, and Month over Month.
The next three key financial metrics are profitability ratios: 1. Gross Profit Margin Ratio, 2. Operating
Profit Margin Ratio, and 3. Net Profit Margin Ratio.
The first and most easily understood is your gross profit margin. It tells how much you’re making from every
sale after the costs to produce your products or services. You should calculate the Gross Profit Margin as a
percent of your net sales. The net profit ratio of your business is gross profit minus operating expenses and
income taxes.
Financial ratios are used to measure and evaluate the efficiency of a specific aspect of your business. A
useful review of the key ratios will give insight into all aspects of your business and identify key areas of
concern. You can effectively make comparisons of your business over different periods of time – a time-
series analysis, and to other firms with your industry niche – a cross-sectional analysis.
The operating profit margin ratio reveals the profit your business makes after paying the variable costs of
production, such as wages, raw materials, etc. When you calculate this ratio as a percentage of your net
sales it shows how efficient you are in controlling the costs and expenses associated with your business
operations. It is the pretax profits of your business.
What are your profit results over the past three years and what trend do you see?

7. CONFIDENTIAL 7
III. How much bank debt should your business have and what is your real return on your equity?
Many business owners are very averse to debt, which is admirable. However,
sometimes debt can be worth the risk because often business growth requires a
certain level of debt. Additional funding can expand operations, fund product
development, expand marketing, and help survive a slump. The challenge is to
keep debt to a manageable amount. It is important to ensure that your business
forecast generates sales and profits to cover loan payments for the term of the loan
and allow you to pay it off when you have the cash flow.
The return on equity ratio or ROE measures the amount of income you are earning
from the equity invested in your business. It’s the amount of net profit generated
from each dollar of shareholders’ equity. For example, a return value of one dollar
indicates that every dollar of shareholders’ equity generates one dollar of profit –
one dollar for you.
It’s also a crucial gauge for potential buyers or investors, as it measures the
efficiency of your company to turn invested money into profits. The higher your
ROE, the more successful your company is at generating net profits with the equity
you have in it. ROE varies by the type of business. For example, a ROE for a
capital goods company would be in the range of 7.8 percent and a consumer
discretionary company would be around 47 percent.
How effective are you in managing your business and utilizing the equity to
increase your business?

8. CONFIDENTIAL 8
IV. How much of your profits do you have to spend on maintaining your current level of operations?
Redirecting a portion of profits back into your business will help you increase the size of
your business and position it for long-term success. The challenge for many owners is
how much to reinvest in their business and how much to take out in income. Many
business owners know it is crucial to reinvest a portion of your profits into making your
business successful and avoid the temptation of taking too much of the cash flow out for
personal expenses.
If you have a very successful year, you can more easily reinvest in your company to make
it larger and more profitable. How much to reinvest each year depends on your business
and its demands. Some entrepreneurs strive to reinvest around half the profits, especially
during high growth periods.
We have found that the most successful businesses are the ones that have a long-term
competitive advantage in a stable industry, a high return on invested capital, and low
capital investment requirements. However, if your business does not meet that threshold,
it’s okay. There are many successful businesses that require regular annual capital
expenditures to maintain growth and generate moderate net profits. If your business
currently requires significant capital expenditure and generates low returns on your
investment, you may have a difficult time making a reasonable net profit in the future.
How do you view your business in terms of the capital expenditures required to
maintain growth and the amount of money you are earning from those investments?

9. CONFIDENTIAL 9
V. Are you able to pass on price increases to your customers without losing sales and profits if
costs go up due to inflation, or do you have to absorb them?
One of the key questions business owners must answer is how to manage increasing input costs. Whether
it’s a manufacturing business or a service business, the challenge is the same.
We all have seen very successful businesses that have struggled to maintain their profit margins when
competitors repeatedly attack them with lower prices or higher quality.
It’s important for a successful business to have formidable barriers from competitive attacks, such as being the
low-cost producer or possessing a powerful world-wide brand for sustained success.
If you can raise prices without losing customers, you’re in a strong competitive position to earn above average
profits long-term in your industry niche.
As costs rise, are you in a position to raise the prices you charge your customers to offset the costs?

10. CONFIDENTIAL
Introduction
10
Who is Midwest Financial M&A
Midwest Financial – Team
Five Key Questions Owners-CEOs Can Use to Build Future Success

11. CONFIDENTIAL
Midwest Financial – M&A
11
Midwest Financial - M&A is a private investment banking firm serving business owners, entrepreneurs,
corporations, and investors active in the middle market. While some firms use terms “client” or “customer”, we
prefer to view you as a critically important “partner” in the process driving toward common goals and vision
for what you want to achieve.
Midwest Financial - M&A can assist you in achieving your goals and objectives by drawing on:
 More than 25+ years of investment banking transaction, financing, and operating experience.
 Extensive relationships with a diverse set of partners and buyers – strategic operating companies, private
equity firms, high net-worth and family offices across the globe. Our search process ensures we
understand their investment criteria, goals, and objectives.
 Multi-disciplined investment banking expertise as sellers, acquirers, operators, advisors, and investors in
multiple business segments.
 Diverse industry knowledge to understand the challenges and opportunities in your market, combined with
professional relationships that may add to your operating talent and management team pre-close.
 Battle-tested transaction expertise through experience in over 100 transactions.
 An emphasis on your long-term success rather than the near term impact of the deal.
 Midwest Financial - M&A provides the same services of the larger ‘Wall Street’ investment banking firms,
but with more personalized attention and commitment to your success.
 In our client-focused approach, we first take the time to learn and understand your needs, goals and
objectives.

12. CONFIDENTIAL
Who We Are
Midwest Financial – M&A is a middle market investment banking firm that assists owners of businesses with
making acquisitions to increase the size of their company or selling and transitioning out of their business.
We are a unique, client-oriented middle-market firm, offering a diverse array of services devoted to middle-market clients.
Our focus is founded on original ideas, long-term relationships, and building value for our clients.
We strive to help our clients achieve specific strategic and financial goals.
We are a confidential advisor with a history of providing innovative and independent advice. Our success is based on our
experience coupled with a clear understanding of each client’s objectives and our commitment to achieve unparalleled
results.
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 Mergers and Acquisitions
 Acquisitions - Buy-side Representation
 Transitions - Sell-side Representation
 Transition Services
 Owner Sale and Exits
 Structuring and Negotiating Transactions
 Leverage Buyouts
 Management Buyouts and Buy-ins
 Joint Ventures
 Private Equity Transaction Services
 Origination
 Due Diligence – Valuation Services
 Business Valuations
 Value Prior to a Sale
 Estate Planning, Refinancing, etc.
 Raising Debt and Equity Capital
 Structuring and Securing Financing
 Private Equity - Venture Capital
Overview of Services

13. CONFIDENTIAL
Introduction
13
Who is Midwest Financial M&A
Midwest Financial – Team
Five Key Questions Owners-CEOs Can Use to Build Future Success

14. CONFIDENTIAL 14
Professional Team – Background and Qualifications
Matthew M. Wirgau – President and CEO
Matthew M. Wirgau is president and managing member of Midwest Financial – M&A, a middle market investment banking firm. He has
extensive experience in representing buyers and sellers, business valuations, due diligence, leveraged buyouts, negotiating and
structuring transactions, and other transaction services.
Mr. Wirgau is highly experienced in working with private equity firms, private investors, and middle market companies seeking to make
acquisitions. He provides a wide variety of support services from the initial contact with an acquisition target to the closing of the
transaction.
He works with numerous private equity firms, investor groups, and middle market companies. This work includes completing searches for
acquisition opportunities, meeting with owners, conducting due diligence, completing the valuation analysis, advising on offers and term
sheets, assisting with negotiations and deal structures, coordinating the closings, and assisting with integration and transition.
Since 1995, Mr. Wirgau has been a successful entrepreneur acquiring, managing, growing and selling privately held companies. He has
owned and operated a manufacturing company and a financial services firm. Prior to that he was President and CEO of a professional
services firm; served as a Senior Vice President of a real estate development firm; and was the Manager of Corporate Planning and
Acquisitions of a large privately held holding company. Mr. Wirgau served as a Deputy Administrator of the Federal Transit Administration
and as Special Assistant to the Secretary of the U.S. Department of Transportation for Elizabeth Dole.
Mr. Wirgau is also active in many civic and community activities. He served as Board Member of the Regional Transit Authority of
Southeast Michigan from 2013 – 2016. Previously, he served as a member and Chairman of the Board of Directors of the Suburban
Mobility Authority for Regional Transportation (SMART), the public transit agency in suburban Southeast Michigan. From 1994 to 2000 he
was a member of the Executive Committee of the Michigan State Chamber of Commerce.
Mr. Wirgau is an Adjunct Professor of Finance at Walsh College in Troy, Michigan, where he teaches graduate level classes on Business
Valuations, Mergers and Acquisitions, and Finance. He is also a published author: Fairness Opinions: No Longer A Laughing Matter, co-
authored with Michael B. Rizik Jr., The Thomas M. Cooley Law Review, Winter 2009; and Technical Note on Leveraged Buyout Valuation
Analysis, a paper developed for MBA and Masters of Finance graduate programs, investment banking training seminars, and other
professional finance training courses.
He is a regular guest speaker at numerous M&A conferences, business valuation seminars, and other business development events.
Mr. Wirgau holds an MBA from The George Washington University in Washington, D.C. (Graduated with Honors; Beta Gamma Sigma
Honor Fraternity) and a Bachelor of Science in Accountancy.

15. CONFIDENTIAL 15
Professional Team – Background and Qualifications
James W. McDowell, Jr. – Managing Director
James W. McDowell, Jr., was a director of WellPoint Insurance Company until Jan. 2005 and a director of Anthem Insurance, Inc. since 1993.
Merged in 2004-2005, WellPoint is now the United State's largest insurance company with combined revenues of $32 billion. Mr. McDowell
served as the head of Corporate Governance for the Board of Directors.
He founded McDowell & Associates (business management consulting) in 1992 after serving as Chief Executive Officer of Dairymen, Inc.
from 1980 to 1992, a $2.1 billion vertically integrated milk and dairy products food company. He is a director of the Fifth Third Bank,
Louisville Kentucky, also serves as the Vice- Chairman of Navigator Telecommunications, a national competitive local exchange telecom
services company (Little Rock, Arkansas), and of StarSat, Inc. (telecommunications).
Mr. McDowell is Chairman of the Independent Board of Directors of the Parr USX China Fund (HPCHX). The fund is a $20 Million mutual fund
that invests in Chinese companies listed on U.S. Exchanges.
Mr. McDowell also serves as Chairmen of Heusen Hearing Institute. Mr. McDowell was formerly the Chairman of the Board of the former Blue
Cross Blue Shield of Kentucky, and a Trustee of the University of Kentucky.
Richard Mueller – Director
Richard C Mueller founded Control Technique Inc. in 1980. He served as president and CEO from 1980 – 2012. Control Technique provides
turn-key electronic, hydraulic and pneumatic systems for special machines, automation and Robotic systems. The company also specializes
in Design, manufacturing, installation and service throughout the United States and Europe.
During Mr. Mueller’s leadership, Control Technique grew from a startup to an organization grossing twenty-five million in annual sales. He
sold the company in December of 2012. Midwest Financial, M&A managed the entire transaction.
Prior to his time at Control Technique, Mr. Mueller completed his studies at Wayne State University and was employed at various engineering
firms in Detroit as a mechanical design engineer. In 1970, he accepted a position at Marposs, which is an international machine tool
company specializing in electronic gauging machines. Mr. Mueller obtained extensive experience in the machine tool industry in the United
States and Europe during his time as manager of engineering and manufacturing for north America until 1980.
Since the sale of Control Technique, Mr. Mueller has worked as an executive coach and consultant for various companies throughout the
United States. His wide range of experience and leadership make him a valuable asset for Midwest Financial, M&A.

16. CONFIDENTIAL
Offices in Bloomfield Hills, MI and Delray Beach, FL
2211 S. Telegraph Rd, P.O. Box 7744, Bloomfield Hills, MI 48302
www.mfsib.com
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For a no obligation, confidential consultation, please contact:
Matthew M. Wirgau
President and Managing Member
248.408.7260
mwirgau@mfsib.com
Investment Banking Services
- M & A