We invest in small, profitable businesses.
Heritage Point Partners (“HPoint”) is a Private Equity firm focused on businesses with enterprise values of $5mm - $50mm. HPoint brings ‘large cap’ professionalism to the underserved small business market place.
We’re professional investors with committed capital and a track record of dozens of private equity deals. We know how to do a deal fairly and efficiently for all parties. But, we also know that small businesses have special considerations. Whether it’s founder succession issues, dealing with imperfect books and records, or understanding the nuances of unique businesses, we’ve seen it all. We approach each situation with an open mind and a human-centric approach. We strive for every stakeholder to say at the end of the deal, “The HPoint team knew what they were doing, treated us fairly, and were just overall good people to work with.”
We know that business owners have a lot of options when selling their business. The point at which business owners exit and cement their legacy, or heritage – their Heritage Point – is a once in a lifetime moment for them. We think our blend of expert knowledge, human touch, and gritty determination is a reason sellers should consider us at their heritage point.
The investments we look for meet the following criteria:
Predictable and recurring or repeat cash flows
A history of steady growth and in a growing industry
Good margins (10%+)
At least $750K in cash flow / profit / seller’s earnings / EBITDA per year
A slant towards Business Services and Enterprise Software businesses
For fast growing software businesses, we'd consider break-even businesses with at least $1.5m in recurring revenue
Industries we're currently focused on:
Vertical-focused enterprise software
Testing, inspection, certification, validation services
Asset monitoring; water measurement/monitoring
Situations We Like
Founders looking to step away completely and pass the baton to the next level of management in the company or new management that we bring
Founders Looking to De-Risk
Founders who just want to ‘take some chips off the table' and find a partner who can help build out the team and take the company to the next level.
Growth Equity Raises
Founders who don’t want to take any money out of the business, but who are looking for rocket fuel to accelerate the growth of an already profitable business.
Companies seeking to spin off a non-core business unit.
Management teams looking to buy out passive or absentee owners.