Talking Points

Hadley Capital Raises Third Small Company Fund

Earlier this year Hadley Capital announced the closing of our third small company fund.

For nearly 20 years, we have focused exclusively on buying small, profitable companies. We have been very successful at helping families address generational transitions, founders complete recapitalizations and management teams buy out inactive owners or founders. Read some of our success stories.

Just like in our prior funds, we are big investors in our third fund and our interests are well aligned with our investors and the business owners and management teams that we work with to improve and grow small companies.

If you own or represent a small company that meets our criteria, please contact us to discuss how we can help your company achieve its goals.

Hadley Capital Acquires GT Golf Supplies

Hadley Capital recently acquired GT Golf Supplies in partnership with its founder, Craig Pollard, and the company’s management team. Craig approached Hadley Capital about partnering with him in order to develop a long-term plan for growing the company while also providing him with a mechanism to achieve some personal financial planning goals.

GT Golf Supplies sources and sells grips, tees and other accessories to golf courses, golf course management companies and off-course retailers.  The Company is known for its broad product offering, short lead times, competitive pricing and excellent customer service.  GTG is based in Vista, California, near San Diego, with a second warehouse located near Charleston, SC.  The Company’s web address is www.ggolf.com.

GT Golf Supplies is actively seeking acquisitions of distributors of golf accessory products. If you own or represent a company that may be a fit with GT Golf Supplies please contact us.

Acquisition Profile – Niche Product or Service Companies in Midwest

Hadley Capital is working with an experienced executive to identify and acquire niche product or service companies with the following characteristics:

  • Market leadership in a niche or expanding market segment
  • Branded products or services with strong market awareness
  • Located in/around Chicago, Milwaukee or Cincinnati or easily relocatable
  • Revenue of $5 – $15 million and a history of profitability
  • Sample markets of interest include automotive or motorcycle parts, consumer products or services, car wash equipment and operators, B2B or B2C niche rental businesses, financial technology and applications, among others

Our executive partner has broad senior management experience and is looking for a business to invest in and subsequently manage in partnership with a strong team.

Contact us if you own or represent a company that would be a good fit for this targeted acquisition search. Hadley Capital will pay success fees for select introductions.

 

Acquisition Profile – Value Added Distributor

Hadley Capital is working with an experienced executive to identify and acquire value added distributors with the following characteristics:

  • Market leadership in a niche or expanding market segment
  • Source of consolidated supply for a large number of products
  • Large, fragmented customer base that relies on distributor for products and service
  • Sells owned and distributed product
  • Leverages systems to improve service, delivery and profitability
  • Service component of sale protects business from digital disintermediation
  • Revenue of $5 – $35 million and a history of profitability

Hadley Capital has a successful track record of acquiring and growing value added distributors in industries as varied as gardening seeds, beekeeping products, and eyewear.

Our executive partner has experience in a wide variety of distribution businesses from healthcare to industrial products and a deep finance background.

Contact us if you own or represent a company that would be a good fit for this targeted acquisition search. Hadley Capital will pay success fees for select introductions.

Acquisition Profile – Industrial Products Manufacturer

Hadley Capital is working with an experienced executive to identify and acquire an industrial products manufacturer with the following characteristics:

  • Market leadership in a niche or expanding market segment
  • Branded products with strong market awareness
  • Multiple channels of distribution (direct, distributor, catalog, etc.)
  • Proprietary, company-owned product designs
  • Revenue of $5 – $35 million and a history of profitability
  • Sample company types include capital equipment manufacturers, material handling products, packaging products and packaging equipment manufacturers, and building products

Our executive partner has more than 20 years experience in diverse industrial markets, leading smaller industrial companies and building and empowering teams to grow revenues and improve operations.

Contact us if you own or represent a company that would be a good fit for this targeted acquisition search. Hadley Capital will pay success fees for select introductions.

Investing in Existing Portfolio Companies

Business investment can take many forms. Hiring or upgrading personnel, purchasing additional equipment, expanding IT systems, etc.  Each business is different and has different needs at different times.

Hadley Capital understands that businesses need continued investment to succeed. Two of Hadley Capital’s portfolio companies (PSI and ISS) recently moved into new facilities custom designed and built for their specific needs. These facilities will help each company continue to expand and serve their clients for many years to come.

Occasionally you hear stories about private equity owners that stop investing in companies and strip them of assets and sweep every penny out of the business. That might work in the short-term, but not in the long-term. Hadley Capital wants to create true long-term value and we recognize that continued on-going investment in portfolio companies is an important part of the equation.

Hadley Capital Acquires W.C. Rouse & Son

We are pleased to announce the acquisition of W.C Rouse & Son. W.C Rouse is based in North Carolina and is the southeast’s leading provider of commercial and industrial boiler equipment and services. W.C Rouse works with their customers to improve the efficiency, reliability, and safety of their boiler system with low cost, effective solutions. This transaction is another example of Hadley Capital working with a small business founder seeking to diversify their assets. We welcome W.C Rouse to the Hadley Capital family.

Open Sky Media Acquires Gulfshore Life Magazine

Open Sky Media, a Hadley Capital portfolio company, recently acquired Gulfshore Life Magazine, the premier lifestyle magazine serving the greater Naples, FL market. Gulfshore Life has been published for more than 40 years and is the dominant title in the greater Naples market. Gulfshore Life is the fifth magazine acquired by Open Sky Media.

Open Sky Media also acquired a number of related titles including Gulfshore Business and a variety of niche publications that serve specific needs in the Naples community.

Open Sky Media continues to seek additional city/lifestyle magazines with strong brands that serve healthy, affluent markets and that compliment Open Sky Media’s other titles including Austin MonthlyAustin HomeSan Antonio MagazineSlice MagazineMarin Magazine.

Read more about the acquisition here. http://www.foliomag.com/2012/open-sky-media-buys-gulfshore-media-properties

Hadley Capital Acquires StorFlex

Hadley Capital has completed the acquisition of StorFlex Fixture Corporation. We are excited for Storflex to join the Hadley family and look forward to working with the StorFlex management team. You can read more about the acquisition here.

We continue to seek new platform acquisitions. If you are an interested seller that meets our investment criteria, please contact us.

Improving Small Businesses

This week’s issue of BusinessWeek has a good article about how Monomoy Capital Partners, a private equity firm, uses operational improvements to improve underperforming companies.

http://www.businessweek.com/articles/2012-04-26/my-week-at-private-equity-boot-camp#p1

Despite the misleading cover, the article details how Monomoy rapidly implements lean manufacturing practices (based on the Toyota Production System) through a series of management “boot-camps”. Monomoy’s goal is to make their companies more efficient – to use less capital to produce more goods or services. Capital includes hard capital like equipment, fork lifts, and buildings; working capital like inventory and receivables; and human capital or payroll. When less capital produces more goods, profits rise and cash flow increases, resulting in increased value for Monomoy.

Hadley Capital has the same end goal – increasing the value of our companies. But, because we focus on small companies, we tend to take a different approach to achieving the end goal. First, we tend to buy high performing businesses so we apply a “first do no harm” approach to our early periods of ownership. Later, we work directly with management to design and implement 1–3 strategic initiatives per year. These strategic initiatives may focus on operating efficiencies, much like Monomoy’s, or improving sales force management or developing new market strategies.

As the article suggests, improving any small business involves a solid plan, a focus on results and a lot of hard work. Hadley Capital works in partnership with the management teams at our companies to design and implement plans for improvement. And so do a lot of other private equity firms. The notion that private equity buyers are simply slash-and-burn owners is worn-out; the days of buying bloated companies, streamlining and then “flipping” them are long gone. The BusinessWeek article does a nice job of capturing one private equity firm’s modern value creation strategy.

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