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Our Investment Criteria

CID Capital is highly selective in the companies in which we invest. Our criteria for evaluating investment opportunities include:

Proven Management
CID Capital considers a strong, experienced and motivated management team to be a critical factor in a successful investment. We seek high-caliber leaders who have made significant contributions in building their business and desire significant ownership interest in their company. We invest in those leaders who possess the highest ethical standards and have the ability to articulate a clear strategic vision for their company. These individuals will have demonstrated the ability to overcome the challenges faced when leading their organization towards their vision and are dedicated to achieving the goals that are necessary to create a successful company.

Financial Performance
Companies will be expected to have strong overall financial performance, including a history of positive and growing cash flow. Company revenues will range between $10 million and $150 million and have minimum free cash flow of $2 million. Also required is a demonstrated ability to meet debt service requirements on existing obligations and any proposed obligations.

Market Leadership
Companies should have a well-defined industry focus and a strong competitive position in its marketplace. This may be reflected by a dominant market share or rapid growth in sales. The company should also be headquartered in the United States and rank among the industry leaders based on the quality of its products or services.

Selected Industries
CID Capital looks to partner with management teams in industries where its investment professionals and advisors have significant operating experience. By leveraging its shared experiences in leading companies, CID Capital's investment professionals make a significant and immediate impact on its portfolio companies. Our industries of focus are:

Industrial Products and Services General Distribution
Safety and Security Products Branded Consumer Products
Medical Products and Services Building Products
Food Manufacturing and Distribution

Systems and Controls
Companies should have strong internal controls to enable potential problems to be rapidly identified, evaluated and addressed. Financial and operational reporting systems should be robust and allow the company to monitor its performance effectively.

Path to Liquidity
The strategic plan for the company should thoroughly examine likely paths for realization of shareholder value. An exit can take several common forms, including a recapitalization, public offering or sale of the company. Thoughtful consideration as to the specifics of an exit transaction is a critical component of CID Capital's investment criteria.

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