From: Jennifer Liu <jliu@brickfieldep.com>
To: Elena Rodriguez <erodriguez@brickfieldep.com>
Date: June 08, 2024 12:00 AM
Subject: Q3 performance review - Meridian Holdings

**From:** James.Taylor@capitalpe.com  
**To:** InvestmentCommittee@capitalpe.com  
**Date:** October 15, 2023  
**Subject:** Q3 Performance Review - Meridian Holdings  

Dear Team,

I hope this message finds you well. As we approach the end of Q3 2023, I wanted to provide an overview of Meridian Holdings’ performance and discuss our strategic direction moving forward.

Meridian's financials for Q3 show a robust growth trajectory. The company reported a revenue of $78 million for the quarter, representing a 12% increase year-over-year from Q3 2022. Notably, EBITDA margins have improved to 24%, up from 21% last year, driven by operational efficiencies and increased demand for their core product lines.

However, while the overall performance is positive, we need to address a few areas of concern. The recently launched product line, Meridian Smart, fell short of projected sales targets, contributing only $5 million in revenue against our forecast of $10 million. The marketing team has initiated a strategic review to identify the gaps in customer acquisition and engagement. I recommend we set a follow-up meeting with their leadership next week to discuss the findings and potential adjustments to the go-to-market strategy.

Looking ahead, we should consider increasing our investment in digital marketing for Meridian to capitalize on their growing online sales channel, which has thus far delivered a 30% increase in e-commerce revenue this quarter. Allocating an additional $2 million towards enhancing their online presence could yield significant returns as we head into Q4.

Let's schedule a meeting next week to delve deeper into these findings, particularly focusing on how we can leverage Meridian’s existing strengths while addressing the shortfalls in the Smart line. Please review the attached performance metrics and come prepared with any insights or additional strategies you believe could be beneficial.

Thank you for your attention to this matter.

Best regards,  
James Taylor  
Senior Associate  
Capital Equity Partners  