John S. Arnold Accomplishments

For the past 30 years Mr. Arnold has developed a broad expertise in the corporate finance arena specifically financial analysis, financial strategy and capitalization structures of privately held companies and real estate projects. Corporate client revenues have ranged from $1.5 million to over $200 million. He has been responsible for leading: management buyouts, recapitalization of existing companies, and capital structures for acquisitions, and creation of growth strategies for companies in corporate finance. Mr. Arnold has concentrated on companies that are privately held in the areas of manufacturing, services, real estate and distribution.

Mr. Arnold began his corporate finance career in 1977 when he joined Stokely Van Camp, Inc., a Fortune 500 company food processor headquartered in Indianapolis, Indiana. Reporting to the Treasurer as well as the Vice Chairman of the Board, Mr. Arnold worked in conjunction with an international consulting firm that was retained by Stokely to create strategic business unit alternatives and to make specific recommendations designed to reduce corporate overhead and redeploy corporate assets into more profitable venues.

This involved creating a new strategic path for Stokely which ultimately led to its pursuit of a leverage buyout. In conjunction with the Treasurer, he advised the Executive Management Group in its efforts to take Stokely private via a MBO/LBO transaction. Mr. Arnold provided the financial analysis and modeling of alternative funding methods, including financial projections for the restructured entity. The position entailed preparation of the ultimate corporate business unit analysis for presentation to the various credit rating agencies and senior management. He worked closely with Goldman, Sachs & Co. in developing the necessary financing document, prospectus, and proxy information. When the LBO attempt failed to materialize and Stokely was sold, he was responsible for creating the necessary sales memorandums for the disposition of certain non-core business segments on behalf of its new owner, Quaker Oats.

In addition to Mr Arnold’s financial duties at Stokely, he also advised the marketing department in the development, introduction and roll-out of powdered Gatorade.

In 1984 Mr. Arnold started an eight year career at Merchants National Corporation, Indianapolis. Indiana ($5.6 Billion Bank Holding Co.-Merged with National City Corporation, 1992). He started as Vice President, Strategic Dimensions, Inc., a wholly owned subsidiary of the Bank. He reported to President of the subsidiary and was responsible for the investment banking function of middle market businesses, including mergers, acquisitions and financial consulting. He closed numerous transactions aggregating in excess of $240 million in revenues and $70 million in transaction value. The position also required arranging financing at various financial institutions for several of the deals. Specifically, Mr. Arnold assisted Dillon Read (NY investment banking house) as financial advisor in a successful LBO of a $200 million division from a fortune 500 company.

In 1990 Mr. Arnold became Vice President-Acquisitions & Specialized Lending, reporting to the Executive Vice President of the Bank. He was responsible for the management, marketing and disposition of Bank ORE properties, (foreclosed commercial real estate) having a portfolio value in excess of $60 million. The position required financial review of properties as well as final negotiation of purchase agreements. In addition, the position was responsible for actively directing the leasing and property management agents of the properties. He saved the Bank in excess of $1 million in recoveries, negotiated fees and commissions.

While Merchants was active in bank acquisitions, Mr. Arnold was responsible for prospecting, analyzing and pricing the various acquisitions. Specific recommendations were then presented to Executive Management.

In late 1992, Mr. Arnold formed Prism Capital Group, a financial advisory firm, for the purposes of providing corporate financial services for middle market companies. The initial focus was on troubled companies and foreclosed commercial real estate projects. This was expanded to include commercial real estate development and brokerage. Other primary services provided include mergers and acquisitions, management buy-outs, arrangement of debt placement, and financial consulting.

Accomplishments have included active buy side representation in the consolidation of two large industry segments (residential real estate brokerage and collision repair).

Besides advising clients in corporate finance matters, Mr. Arnold has also been responsible for owning and managing two profitable companies in the service industry from start-up. Today each company does in excess of $6 million in revenues and 16% EBITDA.


EDUCATION

Master of Business Administration, 1977, Butler University, Indianapolis, IN.

Bachelor of Science of Industrial Mgmt. Purdue University, 1975, W. Lafayette, IN