P: (704) 332-5600
221 Dalton Avenue
Charlotte, NC 28206

The ARC Industries Process



We seek to evaluate all transactions as quickly as possible. We will let you know
with 24 hours if we are interested in pursuing a transaction. If so, we seek to close
with the transaction within 90 days.

We understand that every family-owned business has unique circumstances and
benefits to its owners. Please advise if there are special points of interests that
would be uniquely beneficial to the current owners. It is our desire to be flexible
enough to accommodate the key interests of the current owners.

Our process is as follows:

1. 
After we have received all information from the intermediary and company, we
will decide to move forward, or not, within 24 hours. All information given to ARC
will be held in the strictest of confidence.

2.  We prefer to have a telephonic meeting with the management / current owner
to discuss the business and to understand the details of the transaction that are
seeking.

3.  We will then submit a non-binding Discussion Letter which will delineate ARC's
proposed valuation, structure and other items critical to the transaction. The
Discussion Letter will seek to memorialize and encapsulate the various points of
interests for all parties involved.

4.  Should all parties agree to the items contained within the Discussion Letter, we
would propose one week of thorough off-site due diligence during which time we
would: (a) prepare for on-site management meetings; (b) conduct thorough
industry due diligence; and (c) work with seller to "proof the cash flow".

5.  Upon "proofing the cash flow", we would then move to meet with management
and conduct on-site due diligence for one or two days. During this time, we would want to meet with the key members of management and begin to jointly develop a transition plan.

6.  After our on-site due diligence (which will occur within 14 to 30 days of first receiving all information), we would then memorialize the transaction in a formal, binding, letter of intent "LOI")

7.  After the LOI is signed, we would then begin to more towards documentation and selection of financial partners (senior and mezzanine lenders, if required).

From the date the LOI is signed, we would expect to close the transaction within 90 days.

How can ARC help you?



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