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financial, investment, and strategic management services to his
portfolio of companies.3
3. Quest
Quest is a private investment management company. Since its
incorporation, Mr. Arnold has been Quest’s sole shareholder and
president. Mr. Arnold has been a member of Quest’s board of
directors since October 1990, and its sole member since December
1993. Quest is not a member of petitioners’ affiliated group.
Quest employs people who are specially trained in
accounting, finance, management, or law. From 1987 through 1996,
Quest employed at least two attorneys, numerous C.P.A.s, and many
individuals with MBA degrees. Quest’s primary purpose is to
provide financial and investment advice to Mr. Arnold and his
portfolio of companies, including Norcom. For example, Quest was
actively involved in the equity and debt financing of the
portfolio companies and annually reviewed 30 to 40 potential
acquisitions for Mr. Arnold or one of his controlled companies,
including Norcom.
4. The Acquisition of Norcom
When NCAC acquired Norcom in 1987, Norcom had incurred
numerous years of operating losses. The leveraged acquisition of
Norcom was accomplished largely through an $18 million line of
3 Prior to June 1989, Quest operated as a sole
proprietorship owned by Mr. Arnold.
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Last modified: May 25, 2011