Fall 2006 issue of Horizons

FEATURE ARTICLE Harbour Group Builds Business

By Sam Fox

At Harbour Group, we have a passion for one thing - building businesses. Since 1976 we have focused on identifying potential value and building on it. Because of the quality of both our acquisitions and our management team, we have been successful in acquiring and building almost 150 companies.

But even more importantly, I believe we are creating enduring value – not only for ourselves, but also for employees, vendor partners and customers. We believe in making companies smarter, more competitive, finer. Our overriding objective is to substantially improve all of the businesses we own. After all, the future is where long-term value will be found. Whether businesses make consumer products or industrial products, we approach all of our companies with an eye toward building value. Companies may be operating in a high growth sector or a mature industry, but the rules are much the same. We look for market-leading companies with tremendous potential. Then we seek out complementary companies that will help build our market and thus create value. If that sounds formulaic, don't be fooled. Building value in businesses requires much more than a cookie-cutter approach to problem solving. Everyone involved must remain flexible, striving for successful solutions that meet everyone's needs. It's about creating win-win strategies for everyone. Sam Fox

We look for product-oriented businesses with a diverse customer base - market leaders with a clear competitive advantage. It is ideal if a company, along with any complementary businesses we may acquire, has a strong foothold in a sector with great potential for building market share and volume. We look for companies with a clear and sustainable competitive advantage because of one or more of the following: brands, proprietary products, services and unique customer relationships. If the company is operating in a fragmented industry, even more value can be created because of additional acquisition opportunities and our ability to marry product lines, people and services. We develop new strategies, drive new product development and improve operational processes and efficiency. This often means strengthening and expanding distribution. It almost always means invest- ing hard dollars in growth.

9 • summer 2006 issue