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