HPA seeks to acquire controlling interests in small to medium-sized companies with average revenues at the time of acquisition of between $25 and $200 million and EBITDA ranging between $2 and $20 million. In certain situations, the firm will target smaller transactions if part of a broader acquisition strategy. HPA takes an equity-oriented approach toward investing, but will opportunistically incorporate components of debt financing in structuring transactions.
HPA focuses on investment opportunities where relationship, rapport and consistency of objectives between buyer and seller are important. These deal characteristics coupled with a fair valuation to the selling shareholders ensures a high certainty of closure. HPA also believes its ability to create goodwill with the target company management, resulting in strong mutual commitment to the deal, is a hallmark of the firm's investment approach.
HPA generally targets companies with lengthy operating histories in mature industries where predictable business fundamentals exist. HPA focuses on controlling equity investments across a range of industries, although the firm naturally gravitates towards manufacturing and specialty retailing, areas where the firm has significant experience. We are long-term investors with a focus on building long-term value.