Transaction Criteria

Over its history, HFG has completed APO transactions across a broad spectrum of industries and sectors. We do not focus on specific industries, but rather on high-growth, well-managed and profitable companies.

In our opinion, a company must be able to achieve a minimum of $40 million market valuation, based upon historical financial performance relative to its publicly traded peer group. Depending on the industry and any unique factors, this typically would equate to approximately $2 million in historical, after-tax profit based on a P/E of 20 times earnings.

In certain cases, HFG would consider candidates that fall below our profitability threshold if there is justification and evidence that the company’s public valuation would exceed the afore-mentioned market capitalization requirement.