Legacy Preservation
Heartwood Holdco: Pathways for retiring owners
We seek to buy and operate forever high quality small and medium businesses to provide an off-ramp for retiring owners.
Our Mission
Heartwood Holdco: A Slightly Different Approach
We are not a “private equity” shop…no intention to buy your business, “cut costs” (corporate-speak for “lay people off”) and fluff it up to flip and resell to the next person. We’re here to build upon the success you already established, and to provide an opportunity to preserve the legacy that you’ve built.
Our Mindset
"Profitable And..."
While business can often be exploitative, we believe that business can be more than profit.
Holistic Value Creation
Small businesses can be the foundation of neighborhoods & towns, and can not only be ethical instead of exploitative, but can even be restorative.
Sustainable Growth
We focus on long-term success, implementing strategies that promote sustainable growth and stability.
General Criteria
As a starting point, here are some elements that we would look for:
Quantitative
- $2-$5M sale price
- $250K-1.25M in seller discretionary earnings (SDE)
- 2.5-4.5x SDE multiple
- Successful, stable operation for 10+ years
Industry
- Trades
- Light manufacturing
- B2B services
- Defense/military service providers
- This is not an exhaustive list–we will happily analyze across a broader set of industries!
Qualitative
- Fairly simple
- Existing team(s) in place that are performing well
- Strong team culture