Company: MKLY
Filing Date: 2025-05-09
Form Type: DRS
Source: 0001213900-25-041164
Chunk: 21

Company: McKinley Acquisition Corp
Filing Date: 2025-05-09
Form: DRS
Chunk 21
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 selection, and a strong track record of delivering shareholder value in the public markets. Business Combination Criteria We have established a set of strategic, non -exclusivecriteria to guide our evaluation of potential business combination targets. While we intend to identify a target that aligns with many of the attributes outlined below, we may ultimately pursue an initial business combination with a company that does not meet all of these guidelines, provided our management believes the opportunity offers strong long -termvalue potential for our shareholders. We intend to focus our evaluation on businesses that demonstrate some or all of the following characteristics: •Positioned in a Progressive Industry: Operates within a high -growth, innovation -drivensegment of its broader sector — benefiting from structural tailwinds and disruptive trends that drive outsized demand for its products or services. •Market Leadership: Holds or is capable of attaining a leading position within its category or sub -sector, supported by a sizable addressable market with potential to scale as a public company. •Clear Growth Trajectory: Demonstrates a well -definedand executable growth plan, encompassing both organic and strategic (inorganic) expansion, with a track record or roadmap to sustain high -growthperformance post -combination. •Scalable Business Model: Exhibits strong customer adoption, with operating leverage that supports margin expansion and reduced capital intensity as the business grows. •Sound Capitalization: Maintains a healthy balance sheet and financial profile that supports execution of its growth strategy without requiring significant additional capital in the near term. •Strategic Differentiation: Offers a product or service with clear competitive advantages — such as proprietary technology, customer loyalty, or cost leadership — that collectively establish a defensible market position and sustainable competitive moat. •Near -TermTrading Catalysts: Has identifiable upcoming milestones — such as product launches, key partnerships, or market expansions — that can sustain investor engagement and enhance the company’s valuation narrative following the business combination. 9 •High -CaliberManagement Team: Led by experienced executives with a proven ability to scale operations, attract and retain top talent, and deliver on strategic objectives. We seek teams that are committed to aligning with public shareholders and whose liquidity needs can be appropriately managed within a public company framework. •Public Company Readiness: Possesses or can readily establish the governance, reporting, compliance, and operational infrastructure required to operate as a public company, with the added benefit of leveraging the public markets to raise growth capital, execute acquisitions, and optimize cost of capital. •Value Creation from the Business Combination: Has the potential