Investment Preferences

General Profile
Holding Capital seeks to invest in understandable businesses serving the basic needs of society. They should be stable or growing. Operating management must be proven and willing to stay long-term with ownership. Businesses should be earning a satisfactory return on sales relative to the industry in which they operate, have reasonable working capital ratios and leverage, while performing to an established operating plan. Threats to the future of the business from competition, technology, consumption trends and the like should be known and addressable, especially if intellectual property is the foundation of the business.

Investment Types: Equity investments or growth capital with sellers and management partners.

Size: A minimum of $1 million in Free Cash Flow (EBITDA – Sustaining CAPEX) and $500,000 for Growth Investments.

Transaction Types: Management buy-outs, recapitalizations, growth financings, and straight acquisitions.

Representative Industries: Low to medium tech manufacturing, all forms of distribution, value-added service businesses, specialized retail, and food services/franchising businesses.

Geography: U.S. based companies including their foreign subsidiaries

Minority Interests: Yes.

What We Generally Don’t Do: Start-ups, Companies with Negative Cash Flow, and Venture Rounds.