Welcome to the 4th quarter 2006 edition of the Smart Growth Report from the Childs Company. I hope you find the information here useful in developing plans to meet your business or personal goals. Please contact me if there is anything we can do to facilitate implementing the ideas contained in this report. I would love to help you.

This Quarter:

• Childs Company Expands
• Outlook for Stocks Generally Optimistic
• GA Economic Indicators: 3rd Qrtr. 2006
• Business Partner Profile: The Intersect Group

We are pleased to add Scott Myerhoff as a Partner at Childs Company. Scott brings a wealth of transaction and operating experience to our team in addition to a strong knowledge of the tech sector and venture financing. As CFO of Intercept and Infor, Scott led over 55 M&A transactions and raised over $2 billion in debt and equity capital.

Our Corporate Finance Services, led by Jim Childs, include M&A and capital raising in addition to project based services such as interim CFOs and due diligence advisory engagements. While we serve all industries we have particular depth in serving companies in the staffing, IT services and technology sectors. Our typical client is a growth company with $5 million-$100 million in sales.

Our Wealth Management Services, led by Matt Childs, assist high net worth individuals in preserving and growing their personal financial assets.

Please visit our new website at www.childscompany.com to learn more or contact us directly.

Jim Childs
e-Mail: jchilds@childscompany.com
Phone: 770-500-3611

Scott Myerhoff
e-mail: smeyerhoff@childscompany.com
Phone: 770-500-3612

Matt Childs
e-mail: mchilds@childscompany.com
Phone: 770-378-0250

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Outlook for Stocks
Generally Optimistic

According to Henry McVey, Chief US Investment Strategist for Morgan Stanley, the outlook for stocks through 2007 is generally positive. McVey offers the following macroeconomic factors or assumptions to support his position:

• Deceleration in the CPI: Much of the recent rally in the stock market has stemmed from the fact that “headline” inflation has gone down from 4.3% in June to an estimated 2.3% now.

• The potential for the yield curve to become less flattened in the next twelve months. Historically, the bottoming of the yield curve has served as a catalyst for multiple expansions. In fact, multiples have expanded following seven of the last nine yield curve inversions.

• Equities may be the "best house in a bad neighborhood". Given that the S&P 500 is yielding 4% from dividends and net buybacks alone, Morgan Stanley likes domestic equities versus other asset classes such as real estate, bonds and commodities.

It should be noted that smart analysts may disagree with McVey’s outlook. We still suggest a conservative approach and a prudent strategy of asset allocation in order to cushion the blow if equities underperform in the next year.

For an evaluation of your portfolio and more specific recommendations, contact Matt Childs.

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Childs Company provides an array of strategic financial advisory services to help growth companies and their owners create and realize maximum value. Our Corporate Finance Services include M&A and capital raising in addition to project based financial advisory services such as interim CFOs and due diligence work. Our Wealth Management Services assist high net worth individuals in preserving and growing their personal financial assets.

Click here to learn more about
Childs Company

The Intersect Group is a leading provider of flexible professional services in the fields of Information Technology and Finance/Accounting. Intersect has assembled one of the most experienced teams in Atlanta and currently has over 40 consultants billing. Their flexible model blends experienced CFOs and CIOs with a powerful recruiting engine and excellent client service to meet their clients’ needs.

Intersect’s services include:

• Interim CFO and CIO services
• Project services
• Staff augmentation
• Direct hire recruiting

The Intersect IT team is led by Dan Duffy, President, who has over 15 years serving the Atlanta IT market and most recently led the local IT staffing business for Impact Innovations, where he built the business to over 125 consultants locally in just three years.

Intersect’s Finance/Accounting team is led by Scott Myerhoff. Scott has been the CFO of two large software firms and is a former Audit Manager at Arthur Andersen.

Click here to learn more about
The Intersect Group

Business Publications

Business Week
Business 2.0
Business to Business
Catalyst
Entrepreneur
Fast Company
Forbes
Fortune Small Business
Fortune
Harvard Business Review
Inc.
Kiplinger's
Money
Smart Money
Strategy+Business
Sales & Marketing Management
Selling Power

Why Childs Company?

At Childs Company, we possess a commitment to serve and a track record of success. We have a team of experienced professionals that has both operating and financial experience as principals of successful growth companies.

Click here to discover how Childs Company works with middle market companies and entrepreneurs.

© 2006 Childs Company

email: mchilds@childscompany.com
voice: 678.624.0539
web: www.childscompany.com