Holding Capital seeks to invest in understandable businesses serving the basic needs of society. They should be stable or growing. Operating management must be proven and willing to stay long-term with ownership incentives. Businesses should be earning a satisfactory return on sales relative to the industry in which they operate, have reasonable working capital ratios and leverage, while performing to an established operating plan. Threats to the future of the business from competition, technology, consumption trends and the like should be known and addressable, especially if intellectual property is the foundation of the business. Finally, we recommend that an owner/management speak to our current management partners to understand how we together create a productive and mutually supportive relationship that may span decades.