HRH Capital specializes in industrial and manufacturing investments and we are always looking for the next opportunity. Whether it’s in the tooling, metalworking, health, or real estate industries, we look for both small and large multinational operations to add to our portfolio. Ideally, new opportunities have long term potential for growth and leverage some of our existing assets or skills to complement the HRH portfolio.
Specifically, when we are considering a business acquisition, we’re looking both at the assets of the business (both physical and intellectual) as well as at the current financial strength of the company. Specifically, we look for businesses with an EBIDTA between $1 and $6 million. EBIDTA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a good measure of a businesses’ financial health and profit before accounting deductions are added in. Of course, we also want a business that is cash flow positive, ready to grow, and interested in being acquired.
Once a potential investment target is identified, the due diligence begins. We work to review financial statements to confirm profitability, discuss whether the opportunity fits within the current HRH skills and strengths, whether we think there’s a long term opportunity with the specific business, review all legal documents and assets, and much more.