Confidential Document

CHCapitalPartnersLLC
Knowwhoyouareworkingwith
StrivingtoeducateandconsultSmall
andMiddleMarketsBusinesstohelpcreatejobsforourfellowAmericans

WhatwedoforourClients
By

SokH.Cordell
Sr.ManagingDirector
MarkPizzuti
Sr.managingPartner

Eachofourclientsreceivesthefollowing

CreditNarrative 25to80pagereportsubmittedtoBanksandFinancialInstitution
FinancialPlan 150PageComprehensiveFinancialPlan
FinancialModel ExcelSpreadSheetModel
DetailedPropertyReport
FullComprehensiveAnalysis

Dontyoudeservebetterinthismarketplace.You,yourbusinessandyour
familymatterstous.

TooMuchInformation

Problemswiththecurrentlendingenvironment
CompleteConfusion
Toomuchregulation
Toomanynewprograms
Toomanycreditguidelinechanges
Toomanyuninformedbrokerspromisingloansthatarenotpossibleinthecurrentcredit
market
Toomanyemailsfromonedepartmenttoanothertocommunicatecomplexcredittoone
another,notenoughtimeinthedaytoprocess200emailsperday
Notenoughaccountabilityandnovalueoftime

SourcesofCapitalandTypesofLoans

SourcesofCommercialLoans

CMBS
LifeInsurance
PensionPlans
PrivateEquity
HedgeFunds
MutualFunds
CommercialBanks
RegionalBanks
CommunityBanks
CreditUnions

TypesofLoans

FHACommercial
CMBS
Conduits
OwnerOccupied
SBAGuaranteeLoans
USDALoans
MezzanineStructures
StructuredEquity
HardMoney
NMTC
LHITC
OtherGovernmentGuaranteed
Loans

Confusioninthemarketplace

Whyistheresomuchconfusion
Regulationhaschanged
In2000through2008,creditunderwritingstandardswasatnearlow,sincetheassetprices
wererisingfasterthenanyothertimeinhistory,theLTVworkeditselfoutinthefuture
throughvalueincreaseoftheunderlyingasset
After2008and2009crisis,thefinancialmarketsdeleveragedcapitalandlimitedthe
amountofcapitalwasavailable,thereforeveryfewfinancialintermediarieshascapitalto
lend.
Furthermore,CreditUnderwritingguidelineschanged,andtherubberstampprocessof
commercialloanswasgone.
Theproblemareaswereinthemiddlemarkets,boththeCMBSmarkethadlimitedcapital.
Communitybanksdidnothavetheexperiencenortheexpertiseinunderwriting10to20
affiliatesforglobalcashflow,globalbalancesheets,andglobalincomestatements,which
causeddisarrayforcommercialloansfortheSmallBusinessandMiddleMarkets
SBAchangedtheeligibilitytotrytoreleasecreditforthemiddlemarkets,butfailedto
informthebanksthenewchangesintheSBAloanguidelines.TheSBA504FMLPprogram
had3.3Billionofguaranteesavailable,butonlyusedabout500MM.
CMBSLoanhavealsochanged,DebtConstraintsrequiredonloanisnearhighestsincethe
greatdepressionandhowthecreditmarketisreactingtoloansintheCMBSmarketcreates
nearlyimpossibleloanenvironmentforaverageborrowers

Whoislendinginthemarketplace&whatisneeded

Today,themiddlemarketsarecomingalivetotrytohelpthemiddlemarketfinance
TherearemanyintermediariesfromPrivateEquity,HedgeFunds,NewtypeofMutualFunds,
InvestmentBanksandsomeCommunityBankswhoareextendingcredittovariousmiddlemarket
businesses.
CreditUnderwritingPackageisneededandfurthermoreextensiveanalysisneedstobedonefor
lenderstodeliverloansinanappropriatetime
Packageshouldbeaccurateanderrorfree
CreditPackageneedstobesimpleandclear,throwingtaxreturnsontheemailforlendersisthe
reasonwhymostloansdonotfindlenders
Today,sinceemailhasbecomethemajorchoiceofcommunications,manyfinancialintermediaries
cannothandle100to200emails,sobynaturethefinancialintermediariesonlydealwithCredit
packagerswhodonotwastetimeandsendexcellentcreditpackages.
Problemismostbrokersinthemarketplaceonlysendintaxreturnsandoftendontevenknowthe
loanpackage
Furthermore,thecreditmarketisnolongerthethrowthespaghettionthewallandseewhat
sticks,thatmarketisnolongeravailableandmorelikelywillnotbeavailableinourlifetime.

NatureofCreditCycle

NatureofCreditCycles
AccumulationPhase
Usuallyfewinthemarketplaceknowsthenewproductsthatarebeingintroducedinthemarket
Creditisbeingextended,butwithlimitedbasis

Mark UpPhase
Introductionstonewcreditproductslikes:Mezzanine,StructuredEquity,HigherLTV,etc.

DistributionPhase
Creditisavailableforall,noguidelines,lowerstandardsofcredit,duediligenceatminimallevels,and
startofthebubbleinthemarketplace

MarkDownPhase
Creditbecomesextremelydifficult,notmanyloansareapproved,guidelineforcreditisunreasonable,
andcertainpropertytypesarebecomingverydifficulttofinance

CrashPhase
Middleandsmallbusinessmarketcantgetcredit,nearlyallfinancialintermediariesareshutdown,
eventhestrongestcreditworthyborrowerscannotreceivecredit

RecoveryPhase
Finallynewfinancialproductsarebeingintroduced,strongcreditworthyborrowersstarttoreceive
credit
Someorallfinancialintermediariesarestartingtoextendcredit

NatureofCreditCycle
Distributio
nPhase
Mark Up
Phase

2003

Accumulat
ionPhase
2000

2005to2007

Mark
Down
Phase

2008

Crash
Phase
2009to2011

Recovery
Phase
2013

CHCapitalPartnersLLCDifference

CHCapitalPartnersLLCisaboutiqueFinancialFirmwhichspecializesinthemiddlemarketclients
whomhavenetworthof$5MMoratleast3propertiesinthereportfolio
CHCapitalPartnersLLChascorrespondencelinewithvariousfinancialfirmslike:LifeInsurance,
PensionFunds,PrivateEquity,HedgeFunds,PrivateInvestors,MutualFunds,andotherfinancial
intermediaries
CHCapitalPartnersLLChaspartnerswhomhaveheldSeniorpositionsinWellsFargo,Wachovia,
UBS,ShearsonLehman,SmithBarney,CitiBankandotherfortune500companies
CHCapitalPartnersLLChaspartnerswhomwereformerInvestmentBankerswithexperiencein
MergerandAcquisition,FinancialModeling,FinancialConsultingforComplexFinancial
Instruments,furthermoreknowmorethentheaveragemortgagebrokersinthemarketplace
CHCapitalPartnersLLCprovidessignificantvalueinthemarketplaceforMiddleMarketclients
whomneedtoexpandtheirbusinessintoamultipropertyenterprise
CHCapitalPartnersLLCcreates,executesandmonitorsclientsneedsforfinancing,improving
businessprocessandeventuallyexitstrategiesinwhichtakesintoaccountthetaxation,broad
accountingprincipalstogiveourclientsthebestnetprofitavailableinthemarketplace

CHCapitalsUniqueProcessfortheMiddleMarketClients

AssesstheFinancialSituationfortheClient
CurrentDebt
CurrentCashFlow
CurrentProfit
CurrentStrengthandWeakness
IdentifytheClientsGoals
FutureCashFlow
FutureDebt Refinance
FutureProfit
TaxAnalysis CapitalGainsTaxvs.IncomeTax
StructuresofLLC,CCorp,SCorp,andPartnerships
DesignaFinancialPlan
CreateFinancialModelforLoans,Profit,CashFlow
UsetheGAAPPrincipals
UtilizeTaxCreditfromFederal,StateandLocalGovernments
CreatetheFinancialModelsforVariousDifferentLoanPrograms

CHCapitalsUniqueProcessfortheMiddleMarketClients

ExecutetheFinancialPlanandLoan
ExecuteandReceivetheLetterofInterest(LOI)
ExecutewithClientsCPAamorecomprehensivefinancialmodelswhichtakesintoaccount
varioustaxbreaksfromFederal,State,andLocalGovernments
UseTaxDeferralStrategiesandStructuresforhigherprofits
UseCostSegregationandvariousotherdepreciationmodelstoincreasefuturecashflowwith
reductionintaxationoftheprofitsoftheclients
ReviewandMonitortheFinancialPlan
ReviewAnnuallytheFinancialPlanandModelforclients
Executechangesneededtomeettheclientsgoals
ReviewCreditLineNeedsandreviewprofitabilityoftheclientsgoals
Structuralchangesneededforclientstobestmaintainthefinancialneedsoftheclient

CHCapitalsUniqueProcessfortheMiddleMarketClients

AssesstheFinancial
Situationoftheclient

ReviewandMonitorthe
FinancialPlanandLoans

ExecutetheFinancial
ModelandLoans

IdentifytheClients
Goals

DesignaFinancial
ModelandGoalsand
DefinetheAppropriate
Loan

CHCapitalPartnersLLCloanProducts

TypesofLoansAvailableintheMarketPlace
CMBSMiddleMarketLoans$3MMto$100MM
FHACommercialLoans$2.5MMto$100MM
SBA7aLoans$2.5MMto$6.66MM
SBA504Loans$2.5MMto$15MM
CommunityBanksLoans$2.5MMto$10MM
CreditUnionsLoans$2.5MMto$12.5MM
NewMarketTaxCredit$5MMto$25MM
LowIncomeHousingTaxCredit$7.5MMto$25MM
MunicipalBondFinance$10MMto$100MM
ManyotherSpecialPurposeLoans$2.5MMto$25MM

CHCapitalPartnersLLCTimeLine

ClientMeetingandInformationGathering 1week
FinancialAnalysisandPlanforBorrowersandfinancialintermediaries 1week
FinancialModelandLOI(LetterofInterestReview) 2weeksdependingonhowmanyloansthat
theclientiseligiblefor
TimeLineandExpectationoftheProcess
Dependingonthetypeofloanandwhothefinancialintermediariesare
ExecutionoftheLOIandProcessoftheLoan 2weeks
FinancialReviewandExecutionoftheLoan 2weeks
MonitoringtheGoalsoftheClient totalcombinedtimelineis8weeksor90days

LoanClosingTimeLine

Client
Meeting
and
Information
Gathering

Financial
Analysis
andPlan
for
Borrower
andthe
Financial
Intermediar
ies

TimeLine
and
Execution
oftheLoan
Process

Execution
andLOI
Reviewand
Process

90DayProcess

Financial
Reviewand
Execution
oftheLoan

Monitoring
and
Reviewing
Plan

ItemsneededforFinancialandLoanReview

ItemsNeedfortheLoan
TaxReturns
InterimFinancialProfitandLossandBalanceSheet
ExplanationoftheFinancialDatafromTaxReturn
PersonalCreditHistoryandExplanation
SpecialPurposeProperties:GasStations,Hospitality,andRestaurantshaveunique
requirements
AccountPayableandAccountReceivables
InventorycyclesAnalysis
TitleReview
AppraisalReview
AnnualFinancialIncomeNeeds
RealEstate&DebtSchedule
HistoryoftheBusiness
ResumeofthePrincipals/borrowers
Loansandpreviousloansonthesubjectproperty
AlltaxreturnsandfinancialexplanationsoftheAffiliateBusinesses/Properties

WhatCHCapitalPartnersLLCcreatesinFinancialModeling

ThenextfewslidesarewhatCHCapitalPartnersLLCcreatesforthelendersandtheborrowers
IncomeStatementAnalysis
BalanceSheetAnalysis
OperationalCashFlowAnalysis
GlobalIncomeAnalysis
GlobalBalanceSheetAnalysis
GlobalCashFlowStatement
HorizontalFinancialAnalysisforSubjectandGlobal
UniversalCreditAnalysis
KeyEarningsMeasureAnalysis
RMA(RiskManagementAssociation)CommonSizeStatementAnalysis
RMA(RiskManagementAssociation)PeerReviewAnalysis
FinancialGrowthAnalysis
DuPontAnalysis
ReturnonAssetsandReturnontotalinvestmentsAnalysis
ConsolidatedFinancialAnalysis
Andmanymore

FINANCIALMODELINGFORCLIENTS

Section

FINANCIALSTATEMENT

IncomeStatement
TypeofStatement
#ofMonths:
DateofStatement:
(InThousands)
INCOMESTATEMENT:

TaxReturn
12
12/31/2008
$

TaxReturn
12
12/31/2009
%

TaxReturn
12
12/31/2010
%

InternallyPrepared
12
12/31/2011
$
%

Projection
12
12/31/2012
$

NetSales
CostofSales
GrossProfit

8,304.0
1,483.0
6,821.0

17.9%
82.1%

7,454.0
1,630.0
5,824.0

21.9%
78.1%

7,725.0
1,124.0
6,601.0

14.6%
85.4%

7,528.0
1,104.0
6,424.0

14.7%
85.3%

8,304.0
1,104.0
7,200.0

13.3%
86.7%

OfficerCompensation
Wages
Rent
Depreciation
Interest
OtherOperatingExpenses
TotalExpenses

0.0
2,780.0
0.0
711.4
538.0
2,096.0
6,125.4

0.0%
33.5%
0.0%
8.6%
6.5%
25.2%
73.8%

0.0
2,998.0
0.0
0.0
531.0
1,936.0
5,465.0

0.0%
40.2%
0.0%
0.0%
7.1%
26.0%
73.3%

0.0
1,981.0
0.0
0.0
524.0
3,043.0
5,548.0

0.0%
25.6%
0.0%
0.0%
6.8%
39.4%
71.8%

0.0
2,009.0
0.0
0.0
524.0
2,680.0
5,213.0

0.0%
26.7%
0.0%
0.0%
7.0%
35.6%
69.2%

0.0
1,981.0
0.0
0.0
524.0
2,500.0
5,005.0

0.0%
23.9%
0.0%
0.0%
6.3%
30.1%
60.3%

363.5
349.0
710.1
516.0
194.1

4.4%
4.2%
8.6%
6.2%
2.3%

410.8
352.0
417.8
225.0
192.8

5.5%
4.7%
5.6%
3.0%
2.6%

326.6
306.0
1,073.6
224.0
849.6

4.2%
4.0%
13.9%
2.9%
11.0%

342.5
306.0
1,247.5
225.0
1,022.5

4.5%
4.1%
16.6%
3.0%
13.6%

359.6
306.0
2,248.6
225.0
2,023.6

4.3%
3.7%
27.1%
2.7%
24.4%

IncomefromNexus
ManagementFee5%
Income(Loss)BeforeTaxes
IncomeTax
NetIncome(Loss)

IncomeStatement

Operations
ShouldbeItemizedtohelpdetermineifthecompanyisprofitableornot
Thefigureinthetabledoesnotcategorizetheexpenses,sowhenaddingittogether,creditanalystmaynot
fullcomprehendthenatureofthebusiness
Depreciation,interestrateexpense,wages,andofficerscompensationmaybeapplicableforoneentity
borrowers,buttheincomestatementfailsifyouhavetoreviewmultipleaffiliates,becauseitisinthedetails
ofthebreakdown,wherecreditanalystreallyneedtodothework.

OperationalCashFlow
TypeofStatement
#ofMonths:
DateofStatement:
OperationalCash
Depreciation/Amort.
+InterestExpense
+RentalExpense
+Other:Owner'sDraw
ManagementFee5%
=AvailableCash
DebtService
InterestonLine
PrincipalonLine
NewDebtService
Other:
=Surplus

TaxReturn
12
12/31/2008
710.1
711.4
538.0
0.0
0.0
349.0
2,308.5
624.0
0.0
0.0
0.0
0.0
1,684.5

TaxReturn
12
12/31/2009
417.8
0.0
531.0
0.0
0.0
352.0
1,300.8
624.0
0.0
0.0
0.0
0.0
676.8

TaxReturn
12
12/31/2010
1,073.6
0.0
524.0
0.0
0.0
306.0
1,903.6
624.0
0.0
0.0
0.0
0.0
1,279.6

Internally
Prepared
12
12/31/2011
1,247.5
0.0
524.0
0.0
0.0
306.0
2,077.5
624.0
0.0
0.0
0.0
0.0
1,453.5

Projection
12
12/31/2012
2,248.6
0.0
524.0
0.0
0.0
306.0
3,078.6
624.0
0.0
0.0
0.0
0.0
2,454.6

3.70
249.1
249.1
2.9

2.08
223.6
223.6
1.4

3.05
231.8
231.8
2.3

3.33
225.8
225.8
2.6

4.93
249.1
249.1
4.1

CoverageRatio
ManagementFee5%
FFEReserves
DSCR

OperationalCashFlowforDebtService
3,000.0

5.00

2,000.0

4.00
3.00

1,000.0

2.00

0.0
1/1/2008

1/1/2009

1/1/2010

1/1/2011

1/1/2012

1.00
0.00

1,000.0
OperationalCash

CashAvailableforDebtService

ExistingDebtService

SurplusIncomeafterDebtService

DebtServiceCoverageRatio

OperationalCashFlow
DSCR
AddBackitemstoreflecttruecash
flow
ThenewDebtService
Anyotherinterest
Forbankloan,youneedtoaddback
managementfee,andbookfactor1.5
or2onthecreditreport.ForCMBS
credit,youneedtousethe5%for
management.
Operationalcashflowalsodetermines
whichitemsarefortaxdeferralortax
minimizationstrategiesforthesubject
businessorproperty.
InthecaseforSBA,operationalcash
flowisimportanttodeterminethe
truenatureofcashflow

BalanceSheet
TypeofStatement

TaxReturn

TaxReturn

TaxReturn

Internally
Prepared

Projection

#ofMonths:
DateofStatement:

12
12/31/2008

12
12/31/2009

12
12/31/2010

12
12/31/2011

12
12/31/2012

(InThousands)
ASSETS
Cash&Securities
Receivables
Inventory
Other
CurrentAssets
Land
Buildings
LessDepreciation
NetFixedAssets
LongTermAssets
TOTALASSETS
LIABILITIES
NotesPayable
AccountsPayable
Taxes
Other
CurrentLiabilities
LongtermDebt
LongTermLiabilities
TOTALLIABILITIES
NETWORTH
PartnersCapital
CapitalSurplus
RetainedEarnings
(TreasuryStock)
TOTALNETWORTH
TOTALLIAB&NETWORTH

1,400.0
341.0
114.0
224.0
2,079.0
500.0
7,900.0
2,202.0
6,198.0
6,198.0
8,277.0

16.9%
4.1%
1.4%
2.7%
25.1%
6.0%
95.4%
26.6%
74.9%
74.9%
100.0%

83.0
498.0
107.0
316.0
1,004.0
500.0
8,056.0
2,690.0
5,866.0
5,866.0
6,870.0

1.2%
7.2%
1.6%
4.6%
14.6%
7.3%
117.3%
39.2%
85.4%
85.4%
100.0%

212.0
516.0
123.0
0.0
851.0
500.0
7,686.0
2,967.0
5,219.0
5,219.0
6,070.0

3.5%
8.5%
2.0%
0.0%
14.0%
8.2%
126.6%
48.9%
86.0%
86.0%
100.0%

212.0
0.0
0.0
0.0
212.0
500.0
7,342.0
3,287.0
4,555.0
4,555.0
4,767.0

4.4%
0.0%
0.0%
0.0%
4.4%
10.5%
154.0%
69.0%
95.6%
95.6%
100.0%

2500.0
0.0
0.0
0.0
2,500.0
500.0
7124.0
3654.0
3,970.0
3,970.0
6,470.0

38.6%
0.0%
0.0%
0.0%
38.6%
7.7%
110.1%
56.5%
61.4%
61.4%
100.0% 10,000.0

625.0
270.0
516.0
288.0
1,699.0
8,185.0
8,185.0
9,884.0

6.0%
2.6%
5.0%
2.8%
16.4%
78.8%
78.8%
95.2%

625.0
327.0
224.0
0.0
1,176.0
8,065.0
8,065.0
9,241.0

8.6%
4.5%
3.1%
0.0%
16.1%
110.4%
110.4%
126.5%

625.0
9.2%
359.0
5.3%
224.0
3.3%
0.0
0.0%
1,208.0 17.8%
7,965.0 117.1%
7,965.0 117.1%
9,173.0 134.9%

615.0
350.0
224.0
0.0
1,189.0
7,865.0
7,865.0
9,054.0

10.0%
5.7%
3.6%
0.0%
19.3%
127.5%
127.5%
146.7%

615.0
9.5%
350.0
5.4%
224.0
3.5%
0.0
0.0%
1,189.0 18.4%
7565.0 116.9%
7,565.0 116.9%
8,754.0 135.3%

109.0 1.0%
299.0 2.9%
90.0 0.9%
0.0 0.0%
498.0 4.8%
10,382.0 100.0%

1,284.0
0.0
652.0
0.0
1,936.0
7,305.0

17.6%
0.0%
8.9%
0.0%
26.5%
100.0%

650.0 9.6%
1,723.0 25.3%
0.0
0.0%
0.0
0.0%
2,373.0 34.9%
6,800.0 100.0%

350.0 5.7%
2,534.0 41.1%
0.0
0.0%
0.0
0.0%
2,884.0 46.7%
6,170.0 100.0%

250.0
3.9%
2534.0 39.2%
0.0
0.0%
0.0
0.0%
2,284.0 35.3%
6,470.0 100.0%

BalanceSheet

BookValue
CostBasis
FairMarket

BalanceSheet

1,000.0
500.0

8,000.0

0.0
500.0

6,000.0

1,000.0
1,500.0

4,000.0

2,000.0
2,500.0

2,000.0

3,000.0
0.0

3,500.0

CurrentAssets
CurrentLiabilities
TOTALNETWORTH

LongTermAssets
LongTermLiabilities

GlobalIncomeStatement
TypeofStatement

TaxReturn

#ofMonths:
DateofStatement:
(InThousands)
INCOMESTATEMENT:
NetSales
CostofSales
GrossProfit

TaxReturn

12
12/31/2008
$

TaxReturn

12
12/31/2009
$

TaxReturn

12
12/31/2010
$

12
12/31/2011

13,395.0
4,495.0
8,900.0

14,742.0
5,790.0
8,952.0

14,299.0
5,549.0
8,750.0

14,683.0
5,976.0
8,707.0

OfficerCompensation
Wages
Rent
Depreciation
Interest
OtherOperatingExpenses
TotalExpenses

122.0
3,933.0
963.0
534.0
353.0
1,384.0
7,289.0

320.0
3,892.0
903.0
483.0
355.0
1,595.0
7,548.0

789.0
3,290.0
873.0
409.0
278.0
1,594.0
7,233.0

647.0
3,327.0
749.0
387.0
244.0
1,616.0
6,970.0

OtherIncome
OtherExpenses
Income(Loss)BeforeTaxes
IncomeTax

0.0
58.0
1,553.0
0.0

38.0
215.0
1,227.0
0.0

18.0
235.0
1,300.0
0.0

0.0
235.0
1,502.0
0.0

NetIncome(Loss)

1,553.0

1,227.0

1,300.0

1,502.0

NetIncome
CostofGoodsorCostofSales
GrossProfit
OfficersCompensation
Wages
Rent
InterestExpense
Incomebeforetax
Incomeaftertax
DividendPaid
M1andM2ReconciliationonBookEarnings
OtherExpense
OtherIncome

GlobalIncomeStatement
20,000.0

3.60
3.40
3.20
3.00
2.80
2.60
2.40

15,000.0
10,000.0
5,000.0
0.0

1/1/2008

1/1/2009

1/1/2010

1/1/2011

NetIncome

TotalExpense

NetIncomeAfterTax

OperatingCashAvailableforDebtService

IncomeAfterGlobalDebtService

GlobalDebtServiceCoverageRatio

GlobalBalanceSheet
TypeofStatement

TaxReturn

#ofMonths:
DateofStatement:

12

TaxReturn

12
12/31/2008

12
12/31/2009

TaxReturn

GlobalBalanceSheet

12
12/31/2010

ASSETS
CurrentAssets
LongTermAssets
TOTALASSETS

3,146.0

2,856.4
7,410.0

3,458.5
7,163.0

6,845.5
7,089.0

10,556.0

10,019.4

10,547.5

14,032.5

1,554.0
6,736.0

1,771.0
6,656.0

1,972.0
7,321.0

LIABILITIES
CurrentLiabilities
TOTALLIABILITIES
NETWORTH
Common
Stock
CapitalSurplus
RetainedEarnings
(TreasuryStock)

2,607.0

TOTALNETWORTH
TOTALLIAB&NETWORTH

2,077.0
129.0
1,023.0
526.0

4,027.0
10,763.0

2,015.0
236.6
763.0
861.0

3,464.4
10,120.4

6,089.0
86.5
585.0
580.0

3,093.5
10,414.5

GlobalConsolidatedFinancialsshouldbe
analyzedthesamewayasthesubjectproperty
NeedtoreviewtheNetWorth
Needtoreviewglobalcurrentliabilitiesand
longtermliabilities
LoansfromInterrelatedcompanies

GlobalBalanceSheet

8,000.0

4,500.0

7,000.0

4,000.0

6,000.0

3,500.0
3,000.0

5,000.0

2,500.0

4,000.0

2,000.0

3,000.0

1,500.0

2,000.0

1,000.0

1,000.0

500.0
0.0

0.0

1/1/2008
GlobalCurrentAssets
GlobalCurrentLiabilities

1/1/2009

1/1/2010
GlobalLongTermAssets
GlobalLongTermLiability

GlobalOperationalCashFlow
TypeofStatement
#ofMonths:
DateofStatement:

TaxReturn

TaxReturn

TaxReturn

TaxReturn

12
12/31/2008

12
12/31/2009

12
12/31/2010

12
12/31/2011

OperationalCash

1,553.0

1,227.0

1,300.0

1,502.0

Depreciation/Amort.
+InterestExpense
+RentalExpense
+Other:Owner'sDraw
+Other:
=AvailableCash
ExistingDebtService
InterestonLine
PrincipalonLine
NewDebtService
Other:OwnersDraw1.5Factor
=Surplus

534.0
353.0
144.0
102.0
506.0
3,192.0
437.0
0.0
0.0
0.0
500.0
2,255.0

483.0
355.0
355.0
157.0
102.0
2,679.0
437.0
0.0
0.0
0.0
500.0
1,742.0

409.0
278.0
144.0
129.0
867.0
3,127.0
485.0
0.0
0.0
0.0
500.0
2,142.0

387.0
244.0
0.0
129.0
823.0
3,085.0
485.0
0.0
0.0
0.0
500.0
2,100.0

3.41

2.86

3.17

3.13

CoverageRatio

3,500.0

GlobalOperationalCashFlow
Majorpartofunderwritingthe
combinedriskexposeroftheborrower
Viewrelationshipsbetweenoneor
manycompaniesandhowitmayaffect
theabilityoftheborrowerstopay
mortgage
Answersiftheglobalisapositiveora
negativetothesubjectloan
3.50

GlobalCashFlow

3.40

3,000.0

3.30

2,500.0

3.20

2,000.0

3.10
3.00

1,500.0

2.90

1,000.0

2.80
2.70

500.0

2.60
2.50

0.0

1/1/2008

1/1/2009

1/1/2010

1/1/2011

GlobalOperationalCashFlow

GlobalCashAvailableforDebtService

GlobalExistingDebtPayments

GlobalOwnersDraw1.5%ofCreditReportObligation

GlobalIncomeafterDebtService

GlobalDebtServiceCoverage

UniversalCreditAnalysis
TypeofStatement
DateofStatement:
OperatingFlows
NetSales
ChangeinReceivables
CashfromSales
CostofGoods
ChangeinInventory
ChangeinAccountsPayable
CashProductionCosts
GrossCashIncome
G&AExpense
ChangeinAccruals
OtherIncomeorExpense
ChangeinOtherCurrentAssets
ChangeinOtherCurrentLiabilities
ChangeinOtherNoncurrentAssets
ChangeinOtherNoncurrentLiabilities
ChangeinDeferredTax
IncomeTaxesPaid
CashOperatingExpenses
NetCashafterOperations
InterestExpense
DividendsPaid
CurrentPortionLongTermDebt
TotalFinancingCosts
CashFlowAfterFinancingCosts
CapitalExpenditures
FinancingSurplus(Shortfall)
ChangeinShortTermDebt
ChangeinLongTermDebt
ChangeinOfficerorStockholderDebt
ChangeinEquity
TotalExternalFinancing
NetCashFlowAfterFinancing
BeginningCashPosition
EndingCashPosition

TaxReturn
12/31/2009
7,454.0
157.0
7,297.0
1,630.0
7.0
57.0
1,566.0
5,731.0
4,934.0
0.0
352.0
92.0
288.0
0.0
0.0
292.0
225.0
6,183.0
452.0
531.0
0.0
625.0
1,156.0
1,608.0
200.0
1,808.0
0.0
120.0
0.0
1,692.0
1,812.0
3,620.0
1,400.0
83.0

TaxReturn
12/31/2010
7,725.0
18.0
7,707.0
1,124.0
16.0
32.0
1,108.0
6,599.0
5,024.0
0.0
306.0
316.0
0.0
0.0
0.0
0.0
224.0
5,238.0
1,361.0
524.0
0.0
625.0
1,149.0
212.0
115.0
327.0
0.0
100.0
0.0
1,089.0
1,189.0
862.0
83.0
212.0

Internally
Prepared
12/31/2011
7,528.0
516.0
8,044.0
1,104.0
123.0
9.0
990.0
7,054.0
4,689.0
0.0
306.0
0.0
0.0
0.0
0.0
0.0
225.0
5,220.0
1,834.0
524.0
0.0
625.0
1,149.0
685.0
132.0
817.0
10.0
100.0
0.0
511.0
621.0
196.0
212.0
212.0

Projection
12/31/2012
8,304.0
0.0
8,304.0
1,104.0
0.0
0.0
1,104.0
7,200.0
4,481.0
0.0
306.0
0.0
0.0
0.0
0.0
0.0
225.0
5,012.0
2,188.0
524.0
0.0
615.0
1,139.0
1,049.0
53.0
1,102.0
0.0
300.0
0.0
600.0
300.0
1,402.0
212.0
2,500.0

UCA(UniversalCreditAnalysis)Cash
Flow
StartswithCashFlowfromSales
LessCashPaidtoCostofSalesorCost
ofGoods
LessCashPaidforOperatingExpense
AccountsforCashInflowandOutflow
NetCashfromOperations

UCAAnalysisChart

Changein
3,000.0

4,000.0

2,500.0
2,500.0

2,000.0

2,000.0

0.0
2,000.0

1/1/2009
1/1/2010
83.0
1,400.0

1/1/2011

1/1/2012
1,500.0
1,000.0

4,000.0
6,000.0
8,000.0

212.0

500.0

212.0

212.0
83.0
CashOperatingExpense
NetCashAfterOperation
TotalFinancingCost

212.0
0.0

KeyEarningsMeasure
KeyEarningsMeasuresandCashFlow
Summary

2008

2009

2010

2011

2012

HistoricNetIncome

$407

$242

$175

$446

$604

Plus:Incometaxes

$516

$225

$224

$225

$225

EarningsBeforeTaxes(EBT)

$923

$17

$399

$671

$829

Plus:InterestExpense

$538

$538

$538

$538

$538

$1,461

$521

$937

$1,209

$1,367

$0

$0

$0

$0

$0

$1,461

$521

$937

$1,209

$1,367

$1,900

$1,392

$1,092

$1,648

Historicincomefromoperations

$521

$937

$1,209

$1,367

Less:Taxbasedonselectedtaxrate

$130

$234

$302

$342

$0

$0

$0

$0

$332

$667

$644

$585

Less:Changesinnetworkingcapital

$477

$16

$13

$48

FreeCashFlowavailabletoTotalInvestedCapital(FCFTIC)

$246

$1,386

$1,564

$1,658

$242

$175

$446

$604

$0

$0

$0

$0

$332

$667

$644

$585

$477

$16

$13

$48

Plus:Changesinshorttermnotespayable

$0

$0

$0

$0

Plus:Changesincurrentlongtermnotespayable

$0

$0

$0

$0

$120

$100

$311

$289

$0

$0

$0

$0

$507

$758

$792

$948

EarningsBeforeInterest&Taxes(EBIT)
Plus:Depreciation&Amortization
EarningsBeforeInterest,Depr.&Amort.(EBITDA)
HistoricNetcashflow

Plus:Depr.&amort.fromoper.(netoftax)
Less:Fixedassetpurchases

HistoricNetIncome
Plus:Depreciation&amortization
Less:Fixedassetpurchases
Less:Changesinnetworkingcapital

Plus:Changesinlongtermnotespayable
Less:PreferredDividends

FreeCashFlowavailabletoEquity(FCFE)

KeyEarnings
Enterprise
Value/EBITDA
EnterpriseValue
Enterprise
Value/Revenue
LeveredFree
CashFlow
OperatingCash
Flow
Operating
Margins
FreeCashFlow
toEquity

RMAAnalysisCommonSizeStatement
Business

Industry

Difference Variance

IncomeData:

2012

2012

Netsales

Variance

100%

100%

0%

3%

100%

Grossprofit

85%

85%

0%

5%

83%

Operatingexpenses

67%

44%

23%

11%

66%

Operatingprofit

18%

19%

1%

16%

17%

7%

8%

1%

2%

5%

11%

15%

4%

3%

12%
17%

Allotherexpenses(net)
ProfitBeforeTax

CommonSizeStatement
RMA(RiskManagement
Association)StatementStudies
CompareIndustryversesthe
subjectloan
Difference
Variance
4yearaveragevariance

Assets:
16%

13%

3%

22%

Tradereceivables(net)

Cash&equivalents

8%

12%

4%

11%

9%

Inventory

7%

9%

3%

4%

2%

Allothercurrent

0%

0%

0%

3%

4%

TotalCurrentAssets

31%

41%

10%

6%

14%

Fixedassets(net)

69%

71%

2%

7%

72%

Intangibles(net)

0%

1%

1%

3%

0%

Allothernoncurrent

0%

1%

1%

7%

0%

5%

77%

TotalNoncurrentAssets

69%

63%

6%

100%

100%

0%

Notespayableshortterm

0%

0%

0%

CurrentmaturityoflongtermDebt

5%

5%

Tradepayables

5%

5%

TotalAssets

120%
100%

Liabilities&NetWorth:
0%

0%

0%

0%

5%

0%

11%

6%

Incometaxespayable

2%

4%

2%

3%

6%

Allothercurrentliabilities

3%

3%

0%

8%

3%

15%

16%

1%

2%

2%

TotalCurrentLiabilities

80%
60%
40%
20%

Longtermdebt

61%

43%

18%

19%

66%

Deferredtaxes

0%

0%

0%

22%

0%

Allothernoncurrentliabilities

0%

0%

0%

2%

0%

24%

32%

8%

8%

29%

100%

100%

0%

Networth
TotalLiabilities&NetWorth

0%

Business

Industry

FinancialGrowthEvaluation
SustainableGrowthComponents
NetSalesRevenue
NetIncome
TotalAssets
TotalEquity
PreferredDividends
CommonDividends
SustainableGrowthRatios
ProfitMargin(NetIncome/TotalRevenue)a
EarningsRetention(1[TotalDividends]/NI)b
AssetTurnover(TotalRevenue/TotalAssets)c
FinancialLeverage(TotalAssets/TotalEquity)d
MaximumSustainableGrowthinRevenue(a*b*c*d)
HistoricGrowthinTotalRevenue
DifferencefromMaximum
HistoricGrowthinTotalRevenue(RollingAverage)

2008

2009

2010

2011

2012

8445

7710

7617

7534

7485

407

242

175

446

604

8277

6870

6348

5672

5752

498

1936

2373

2884

2884

0
0

0
0

0
0

0
0

0
0

4.82%

3.14%

2.30%

5.92%

8.07%

100.00%

100.00%

100.00%

100.00%

100.00%

102.03%

112.23%

119.99%

132.83%

130.13%

1662.05%

354.86%

267.51%

196.67%

199.45%

81.77%

12.50%

7.37%

15.46%

20.94%

8.71%

1.21%

1.09%

0.65%

21.21%

6.17%

14.37%

21.59%

8.71%

4.96%

3.67%

2.91%

SustainableGrowthComponent

NetIncome
AssetTurnOver
HistoricalGrowth

TotalAssets
FinancialLeverage
HistoricalGrowthinTotalRevenue

DuPontAnalysis
DuPontAnalysis

2008

2009

2010

2011

2012

NetSalesRevenue

8445

7710

7617

7534

7485

Dividedby:TotalAssets

8277

6870

6348

5672

5752

AssetTurnoverRatioa

1.02

1.12

1.2

1.33

1.3

NetIncome

407

242

175

446

604

8445

7710

7617

7534

7485

ReturnonSalesRatiob

4.82%

3.14%

2.30%

5.92%

8.07%

DuPontReturnonAssets(axb)

4.92%

3.52%

2.76%

7.86%

10.50%

8277

6870

6348

5672

5752

498

1936

2373

2884

2884

16.62

3.55

2.68

1.97

1.99

81.77%

12.50%

7.37%

15.46%

20.94%

47.13%

28.96%

17.86%

18.47%

Dividedby:NetSales

TotalAssets
Dividedby:TotalEquity
FinancialLeverageRatioc
DuPontReturnonEquity(axbxc)
DuPontReturnonEquity(RollingAverage)

DuPontAnalysis

DuPontAssetTurnover
FinancialLeverage
DuPontReturnonEquity
AssetTurnOverRatio

DuPontAnalysisReturnonEquity
100.00%
50.00%
0.00%
2008

2009

2010

2011

50.00%
DuPontReturnonEquity(axbxc)
DuPontReturnonEquity(RollingAverage)
Log.(DuPontReturnonEquity(RollingAverage))

2012

SalesRelatedMetrics
SalesRelated
Metrics

2008

2009

2010

2011

2012

11

14

15

22

32

32%

28%

19%

22%

21%

TotalSellingExpenses

65.14%

72.10%

72.94%

69.30%

66.99%

GrossProfit
Daysreceivable
outstanding

82.44%

78.86%

85.24%

85.35%

85.25%

19.86

24.29

24.25

23.65

85.2

137.04

139.02

130.92

Less:Salesreturnsand
allowances
Less:Salesdiscounts

Daysinventory

ReturnandAllowance
SalesDiscountifapplicable
SellingExpense
GrossMargins
ARandAPAnalysis

SalesRelatedMetrics
200.00%

200

150.00%

150

100.00%

100

50.00%

50

0.00%

0
2008

2009

2010

2011

TotalSellingExpenses

GrossProfit

Daysreceivableoutstanding

Daysinventory

2012

ReturnonAssets
2008

2009

2010

2011

2012

82.44%

78.86%

85.24%

85.35%

85.25%

NetIncomeAfterTaxtoSales

4.82%

3.14%

2.30%

5.92%

8.07%

NetOperatingIncometoSales

17.30%

6.76%

12.30%

16.05%

18.26%

EBTtoSales

10.93%

0.22%

5.24%

8.91%

11.08%

EBITtoSales

17.30%

6.76%

12.30%

16.05%

18.26%

EBITDAtoSales

17.30%

6.76%

12.30%

16.05%

18.26%

47.73%

23.09%

56.31%

63.71%

3.35%

52.64%

84.72%

87.45%

EBITtoFCFTIC

212.00%

67.62%

77.31%

82.44%

EBITDAtoFCFTIC

212.00%

67.62%

77.31%

82.44%

37.84%

13.72%

42.03%

39.56%

GrossProfittoSales

NetIncometoFCFE
EBTtoFCFE

CashfromOperationstoNetCashFlow

ReturnonAssets
ReturnonEquity
ReturnonTotalInvestedCapital
EBTtoFCF
EBITtoFCF
CashFromOperations
VelocityofCashFlow

ProfitabilityAnalysis
200.00

200.00

0.00

0.00

1/1/2008

1/1/2009

1/1/2010

1/1/2011

200.00

1/1/2012

200.00

GrossMargin%
InterestExpense%
OperatingExpense%
NetMargin%
ReturnonAverageAssets%

FinancialForecastLinear

FormulaforLinear
Trendline:

Year

Order

TotalRev

Linear

Slope

Intercept

variablex

actualy

Valuey

mfactor

bfactor

2006

12,076

12,683

2007

16,719

16,559

2008

21,196

20,435

m:slopeofline

2009

24,737

24,311

x:independentvariable

2010

27,448

28,188

b:yintercept

2011

32,064

2012

35,940

2013

39,816

2014

43,692

2015

10

47,569

y=(m*x)+b

TotalRevenues

LinearForecasting

3876.20

30,000
25,000
20,000
15,000
10,000
5,000
0

1996

1996

1997

1997

1998

1998

Periods
TotalRevenues

1999

1999

2000

2000

2001

8806.60

FinancialForecastNonLinearExponential
Years=>
TotalRevenues Historical
TotalRevenues Exponential
TotalRevenues WtMovingAvg

1996
12,076
12,076
11,105

1997
16,719
12,076
15,230

1998
21,196
16,719
18,890

1999
24,737
21,196
21,605

2000
27,448
24,737
22,965

2001

26,070

2002

2003

26,413

26,316

2004

2005

26,355

26,340

FindtheOptimalSmoothingFactor:
Total
Revenues
12,076
16,719
21,196
24,737
27,448
MeanSquaredError

Exponent
Amounts
12,076
12,076
16,719
21,196
24,737

Total
Revenues
12,076
16,719
21,196
24,737
27,448
MeanSquaredError

Weighted
Amounts
11,105
15,230
18,890
21,605
22,965

Difference

Square

0
4,643
4,477
3,541
2,711

0
21,557,449
20,043,529
12,538,681
7,349,521
12,297,836

FindtheOptimalMovingWeights:
Difference

Square

971
1,489
2,306
3,132
4,483

ExponentialComparison
TotalRevenues

30,000
20,000
10,000
0

2001
TotalRevenuesHistorical

2002

2003
TotalRevenuesExponential
Periods

2004
TotalRevenuesWtMovingAvg

2005

942,841
2,217,121
5,317,636
9,809,424
20,100,607
7,677,526

RiskAnalysis MonteCarloSimulation

RunaRandomIncomeTrialbasedon20%increaseand20%
decreaseinincome
TrialsdeterminesthepossibilityofDefault.Whatthetrial
allowsnobiasondata
Theeffectsoftheeconomicsituationonthedefaultrate
andhowiteffectsthecreditqualityforBanks
ObservethefrequencyofDataandrecordthatdata

Rand
om
Trials
6,500
6,750
7,000
7,250
7,500
7,750
8,000
8,250
8,500
8,750
9,000
9,250
9,500
9,750

RandomTrialSimulation Histogram
0.9

CumulativeProbability

1.0

800
700

Frequency

<
<
<
<
<
<
<
<
<
<
<
<
<
<

6,750
7,000
7,250
7,500
7,750
8,000
8,250
8,500
8,750
9,000
9,250
9,500
9,750
10,000

6,625
6,875
7,125
7,375
7,625
7,875
8,125
8,375
8,625
8,875
9,125
9,375
9,625
9,875

frequency

percent

326
773
744
735
741
743
730
780
777
764
731
717
733
706

3.3
7.7
7.4
7.4
7.4
7.4
7.3
7.8
7.8
7.6
7.3
7.2
7.3
7.1

250
250
250
250
250
250
250
250
250
250
250
250
250
250

326
1099
1843
2578
3319
4062
4792
5572
6349
7113
7844
8561
9294
10000

3.3
11.0
18.4
25.8
33.2
40.6
47.9
55.7
63.5
71.1
78.4
85.6
92.9
100.0

RandomTrialSimulation CumulativeChart

900

600
500
400
300
200
100
0
6500

upper midpoint width

lower

cumulative
frequency percent

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1

7000

7500

8000

8500

RandomTrials

9000

9500

10000

0.0
6500

7000

7500

8000

8500

RandomTrials

9000

9500

10000

RiskAnalysis MonteCarloSimulationII
2008

2009

2010

2011

2012

GrossIncome

$8,304.00

$7,454.00

$7,725.00

$7,528.00

COG

$1,483.00

$1,630.00

$1,124.00

NetIncome

$6,821.00

$5,824.00

Expense

$6,125.38

IncomeMean

$7,863.00StandardDev.

414.58172

$8,304.00

COGMean

$1,289.00StandardDev.

249.79592

$1,104.00

$1,104.00

NOI

$6,574.00StandardDev.

509.56207

$6,601.00

$6,424.00

$7,200.00

ExpenseMean

$5,471.28StandardDev.

423.64425

$5,465.00

$5,548.00

$5,213.00

$5,005.00

$695.62

$359.00

$1,053.00

$1,211.00

$2,195.00

Profit

$1,102.72StandardDev.

693.924

$2,308.51

$1,300.77

$1,903.56

$2,077.50

$3,078.63

AddbackMean

$2,133.79StandardDev.

646.78682

Debt

$624.00

$624.00

$624.00

$624.00

$624.00

$624.00StandardDev.

DSCR

3.70

2.08

3.05

3.33

4.93

Profit
AddBacks

Frequency

120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%

Bin
Frequency

Cumulative%

DSCR

Bin

HistogramSimulationofIncome
RandomTrials
60
50
40
30
20
10
0

Mean

6291
6383.235
6475.471
6567.706
6659.941
6752.176
6844.412
6936.647
7028.882
7121.118
7213.353
7305.588
7397.824
7490.059
7582.294
7674.529
7766.765
7859
7951.235
8043.471

3.419541

Frequency

Cumulative%
1
35
32
48
44
37
30
32
30
45
36
29
39
45
36
35
35
35
34
32

0.08%
3.00%
5.66%
9.66%
13.32%
16.40%
18.90%
21.57%
24.06%
27.81%
30.81%
33.22%
36.47%
40.22%
43.21%
46.13%
49.04%
51.96%
54.79%
57.45%

Bin
6567.706
7121.118
7490.059
6659.941
9242.529
8320.176
9058.059
7397.824
8689.118
6752.176
8135.706
8504.647
8965.824
9150.294
7213.353
7582.294
6383.235
7674.529
7766.765
7859

Frequency

Cumulative%
48
45
45
44
43
42
41
39
39
37
37
37
37
37
36
36
35
35
35
35

4.00%
7.74%
11.49%
15.15%
18.73%
22.23%
25.65%
28.89%
32.14%
35.22%
38.30%
41.38%
44.46%
47.54%
50.54%
53.54%
56.45%
59.37%
62.28%
65.20%

Whywearedifferenttypeoflenders

CHCapitalPartnersLLCpurposeistocreateandconsultbusinessrelationships
Wearenotlookingforaloan,butclientswhomwecanconsult,adviseandexecutethebest
possibleloansandbusinessplanstohelpgrowthesmallbusinessandmiddlemarkets
Ourobjectivesarelongtermrelationshipswhereourexpertisewillbevaluedandourbusiness
planscanhelpenhancethebusinessownersbottomline:Profits
Wethriveinacomplexfinancialmarketswhereweinform,educateandempowerourclientsto
knowwhat,whenandhowagrowtheirbusiness/businesses.WecreatebusinessplansfromWall
Streetprospectiveandincreasethevaluationofthebusinessowner.
Whenexitstrategiesareneeded,CHCapitalPartnersLLCcreatesthebestmethodofvaluationfor
thebusinessclient.
CHCapitalPartnersLLCappreciateseachandeveryclient,andyouwillknowourcommitmentby
ouractions.
Accountabilityisthemostimportantpartofthebusiness,andoftenmanycompaniesdonottake
responsibilityfortheiractions.
CHCapitalPartnersLLClookstoyoutheclientfordirectionandanyspecialneedsthatmayrequire
forustoretainagreatrelationshipforthelongterm.

CHCapitalPartnersLLC

Thankyou
Ourgoalistocreate$150MMinnewfinancingand50newrelationshipsayear.
OurmissionistohelpSmallandMiddleMarketBusinessesthriveinthis
complexfinancialworld
OurPartnershaveheldSeniorpositionsinvariousfortune500companiesand
CHCapitalPartnersLLCbelievesthatourclientrelationshipsareunmatchedin
themarketplace
Youtheclientandourrelationshipisthemostimportantpartofourbusiness,
andwebelievethatthemarketplacehasforgottenwhotheclientis
CHCapitalPartnersLLCprovidesFinancialPlanning,CommercialMortgage
Lending,BusinessInsurance,PersonalInsurance,InvestmentAdvisory,and
Businessrelationshipstoour300clients.