TARGET INVESTMENTS

Hudson Ferry focuses on private, established lower middle-market companies with strong cash flow and growth prospects, and enterprise values typically between $10 million and $50 million.

While a significant number of the companies that the partners have previously invested in may be characterized as niche manufacturing, business services or outsourcing companies, Hudson Ferry's investment selection process is company-centric rather than industry-focused. In other words, while Hudson Ferry considers industry and macro economic issues when making an investment, the partners believe that the company-specific factors and characteristics of a potential acquisition candidate will be more significant in creating value and driving investment returns.

Investment Criteria

Hudson Ferry is focused on potential acquisitions that have the following attributes:

Business Model

  • Specialty Manufacturing
  • Business Services
  • Outsourcing

Financial Attributes

  • Enterprise Value: $10-$50 million
  • Revenue: $15-$75 million
  • EBITDA: $3-$7 million
  • Strong and growing free cash flow

Prospects for Value Creation

  • Organic growth
  • Ability to access new markets
  • Ability to broaden product or service offerings
  • Manufacturing efficiencies
  • Acquisitions

Market Position

  • Differentiated or proprietary product, service, distribution channel, process or technology
  • Meaningful cost advantage and/or high switching costs
  • Strong customer base
  • High barriers to entry

Management

  • Strong management team financially committed to the transaction
  • Vision and desire to transition to the next level