The HMC Group has established strong relationships with four exceptional buyer groups that are highly qualified and eager to partner with you. Their people-focused approach and deep industry experience will honor the legacy and culture you have worked so hard to build.

  • Well established company > 8 year operating history

  • Privately held

  • High degree of recurring revenue

  • High customer retention rate

  • Consistent Profitability

  • Geography: North America

Buyer A: <$1M EBITDA

Buyer B: $1M - $4M EBITDA

Buyer C: $4M- $8M EBITDA

Buyer D: $4M-$25M EBITDA

Investment Criteria

Preferred Industries (Partial List):

  • Industrials: Specialty trades, chemical production, distribution, specialty manufacturing- machinery, equipment, parts, packaging, LBM, infrastructure services, custom manufacturing, fuel distribution, agriculture products, ethanol production, engineering services, code compliance, elevator service and installation.

  • Consumer: Food and beverage ingredients, specialty manufacturing, death care services, misc. consumer services, investment management.

    1. It’s a seller’s market. There is strong buyer demand and competition for quality businesses.

    2. The M+A market fundamentals are healthy.  Valuations are favorable.  Multiples are stronger than historical averages.

    3. Access to capital.  Family offices, investment funds, and rollups are eager to diversify and deploy their capital.

    4. Economic Stability.  A resilient US economy gives buyers the confidence to move forward with their growth plans.

    5. AI.  Businesses that can benefit from various AI applications are viewed as more attractive candidates.

    6. Long Term owners are seeking a better work life balance while reducing portfolio risk (diversification) and securing financial freedom.

    7. Favorable Capital Gains tax treatment.  These tax rates are currently low by historical standards.  This could change rather quickly in the event of forthcoming elections and revisions to the tax code.

    1. The business owner (seller) is gone after the sale.  This is rarely the case.  Established business contacts, employee / client / vendor relationships are key to the continuity of the business.

    2. The seller must sell 100% of their ownership stake.  This is not always the case.  Buyers want all parties to be aligned in the long-term continued success of the business.

    3. The buyer will drastically change all aspects of the business.  This goes against common sense.  Most buyers can help with some of the perfunctory aspects of the business, and buy better healthcare coverage (as part of a larger organization), for example.   Auto and truck nationwide fleet programs is another typical example.  Many large buyers are partially self-insured to an extent, generating significant earnings to the bottom line.

    4. “I still have the energy and desire to run the business.  There’s plenty of time to sell”.   Note: the sale process can take up to 3 years, or longer in many cases.  There are many moving parts in this process.  You do NOT want to begin the process during a weakening economy or during a recession.  Multiples and the amount of cash received at closing can fall considerably.

    5. A "sorry, not interested" response from a particular buyer should not be construed as something being wrong with your business.  There are many explanations for this.

    1. The amount of cash provided at closing versus other forms of consideration.

    2. The buyer’s experience, financial strength, reputation, and references.  Are they providing patient capital or does the deal have limited wiggle room?

    3. Conditions and contingencies.  Reading the fine print is absolutely essential.

    4. Timelines and exclusivity.  Will one buyer proceed to a rapid close while another plans on a year of due diligence?

    5. Post closing obligations.

    6. Cultural/ strategic fit.  Will the buyer provide adequate resources to grow?  Are the growth assumptions reasonable?

    7. There must be an open and honest dialogue to determine what scenarios will work best for the buyer and seller.  In most cases, this is the seller’s life’s work and the transaction and expectations should be treated with the commensurate amount of respect.