LEVERAGED BUYOUTS (LBO)
The Family Business Dilemma
Throughout Pennsylvania, Ohio, New York and West Virginia, many small businesses in the food arena are closely held. Often these businesses are now in the hands of a second or even third generation of owners but are showing signs of needing re-positioning and new investment to grow and continue the legacy of the founders as an important brand in our market. As owners, you are often faced with the challenge of not being large enough to conduct a full auction to attract buyers. You also will have concerns about the continuation of your story and the future for your employees.
We are uniquely positioned to help solve these problems for you. As both active investors and as experienced operators, we can develop a solution for you that can help you with being able to get the liquidity you need and deserve for you and your families. At the same time, we can also bring an active group of investors who know the space you are in and work toward the goal of achieving growth that you may know is out there but cannot take the next step to achieve.
How We Work
If you bring your story to us we’re here to listen. We are happy to do a preliminary review of your situation and will tell you quickly whether we think this is a fit for us and our portfolio. If we think we can add value to your situation, we will tell you quickly and without any consideration. We are not an investment bank or a broker. If we believe this would be an acquisition or a partnership that we would be interested in, we will prepare our own view on the valuation of your business. Our team includes the former head of Transaction Advisory Services for BDO USA LLP. Our decades of experience in this space allows us to give you a clear-eyed view of your situation.
What We Are Interested In
We are interested in all phases of the regional food system. Companies that have their own brands, co-pack, value-added processors, distribution and logistics as well as retail. We have been involved in both food and beverage businesses in our careers. We have outstanding networks in distribution and retail channels and we have a great team of experts who can build brands, improve process efficiencies and source materials.
Generally, we are looking for companies that have at least $400,000 in EBITDA and $2 million in historic revenues – but this is not fixed in stone. Companies that can provide platforms for growth or have unique characteristics but are smaller are also very much of interest.
Interested in working with Hollymead Capital? Click the button below to complete an application.