NEW CAPITAL INFUSION, INC.
ST PETERSBURG, FLORIDA

Joseph E. Maddox is New Capital Infusion, Inc.’s principal and founder. Prior to founding the company Mr. Maddox built a successful Florida-based multimillion dollar, multinational professional accounting and technology corporation from inception. Prior to his corporation’s sale, Mr. Maddox was a Certified Public Accountant licensed in nearly 20 states. To expand into cross border and international business, Mr. Maddox sat for and passed the Canadian Chartered Accountant exam in addition to the US Certified Public Accountant exam. He currently has public accountancy practice privileges throughout the entire British Commonwealth of countries, e.g. the United Kingdom, Canada, Australia, New Zealand, South Africa and India as well as a host of additional countries. He is a member of the Canadian Institute of Chartered Accountants and Chartered Professional Accountants of Ontario. He has extensive experience in international and cross border commerce. Having built and operated a major corporation, Mr. Maddox has extensive professional firsthand experience with the demands that business owners and management routinely face on a daily basis, e.g. marketing, business development, production fulfillment, staff management, cost containment, financial reporting and cash flow management. His finance and accounting experience includes senior assignments in the manufacturing, health care, technology and finance arenas. He holds a current Florida real estate license and is a member of the Business Brokers of Florida. He has major business acquisition and sale experience both recently as well as in previous assignments. New Capital Infusion, Inc. is a full service financial resources firm for fulfilling the capital needs of businesses from $100,000 to $100 Million in gross annual revenues. Every business, owner, and management team is unique. Different goals, objectives and needs can be met in a variety of avenues and means depending on each specific situation and capital need. We have access to the business brokerage market for both buyers and sellers in a variety of markets for companies with a wide range of revenues. Different private equity funds ordinarily have different focus and criteria for investment. There are private equity groups that specifically focus on real estate, health care, technology, manufacturing, distribution, retail and other fields while specifically avoiding certain industries and markets. There are venture capital (VC) firms that focus strictly on emerging companies. Companies with steady growth and solid margins are very attractive. Businesses with proven financial track records are especially highly valued and recruited as a general rule. Companies with a record of cyclical revenues tied to ‘boom and bust’ industries like construction, oil and gas, etc. are less attractive to funds seeking steady and predictable performance. Current observation 1: Countless oil and gas companies as well as their ancillary support companies are on the market right now due to that industry being near the top of its business cycle. The time to buy oil and gas companies is when the petroleum cycle ‘busts’ and is near the bottom of its revenue cycle, possibly in late 2015/early 2016. Current observation 2: Countless construction and related companies are also on the market right now due to that industry being near the top of its boom cycle. The last construction bust was in 2010 and most companies have been recovering every year since then. When the next construction bust will hit is anyone’s guess but economists say that business cycles typically run 5-7 years. As a rule, private equity groups will require a minimum of 51% ownership to invest in a company. Sellers need to be comfortable with this fact right up front. Sellers need to be aware of the ‘institutional’ mindset of larger funds. These funds focus primarily on IRR (internal rate of return). This requires a short term 3-4 year plan to liquidate their investment in a relatively short time. A high IRR is required in order for them to raise the needed capital for their next fund. Higher fund amounts under management equate to higher fees. These funds tend to manage companies with a heavy hand that rarely takes into account any existing management. Different equity investors may or may not require new management be brought in post investment. Business owners and management need to be aware of these requirements before entering into discussions with private equity groups. Business valuations are based solely on multiples of their adjusted EBITDA. Companies with higher assets normally command higher multiples. The multiple used is the single largest point of negotiation that sellers need to focus on. Business owners need to be aware of the difference between sales and recaps (recapitalizations). Most business owners want an all-cash 100% buyout by a strategic buyer willing to pay a premium for his/her company. Unfortunately that happens rather infrequently or requires a much longer time on the market. Lengthy sale times are undesirable since sellers do not want the word on the street that they are for sale. The most common sale structure is a recap. Recaps allow a business owner(s) to sell a majority interest in their company to achieve a liquidity event, an equity infusion into their company or a combination of the two. The owners who plan for and advertise this find their companies sold very quickly. Whether through additional management or simply through high level advisory and consulting support a growth plan is put in place for the company. By selling their minority percentage at a later date for a much higher price allows sellers to have a ‘second bite of the apple’. Private equity funding vehicles can assist business owners and management in achieving a number of near term, short term and long term strategic goals such as: