We focus on working with family and management-owned businesses to help build and grow their companies by providing our strategic resources with a conservative capital structure.

In addition to reducing financial risks typically associated with closing a transaction, Heartwood’s unique investment structure provides management teams with a strong base from which to more confidently execute a strategic plan while also allowing for excess cash flow to be periodically distributed to investors and managers of the business.

heartwood_infographic

Traditional Buyout Firm

Capital Structure
Company Cash Flows
Investor Cash Flows

While we actively pursue opportunities across a broad range of industries, we seek certain characteristics within each of our investments.

Industries

Management

Company

Structure

Industries

  • Agriculture
  • Aftermarket Auto/Truck Parts
  • Consumer Products
  • Distribution
  • Food
  • Industrial Services
  • Niche Manufacturing
  • Packaging
  • Specialty Chemicals/Materials

Management

  • Seasoned, experienced, and committed management teams with strong entrepreneurial drive
  • Prefer to acquire and expand companies in concert with existing management
  • Invests alongside us

Company

  • Family and management-owned business seeking a high-quality investment partner
  • U.S. Headquartered 
  • Competitive position with ability to maintain or expand margins
  • Demonstrated ability to produce excess cash flow
  • Manageable customer concentration
  • Revenue range of $30M to $400M
  • EBITDA between $5M to $25M
  • Lower EBITDA for add-on investments

Structure

  • Control and minority investments
  • Preference for pass through entities
  • Asset purchase or equivalent preferred (typically companies organized as S Corporations, LLC’s, Partnerships)