We focus on working with founder, family and management-held 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.
Traditional Buyout Firm
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.
- Aftermarket Auto/Truck Parts
- Environmental/Industrial Services
- Niche Manufacturing
- Specialty Chemicals/Materials
- Seasoned, experienced, and committed management teams with strong entrepreneurial drive
- Prefer to acquire and expand companies in concert with existing management
- Invests alongside us
- Founder, family and management-held businesses 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 $30M
- Lower EBITDA for add-on investments
- Control and minority investments
- Preference for pass through entities
- Asset purchase or equivalent preferred (typically companies organized as S Corporations, LLC’s, Partnerships)