FOR BIG SCREENS
Andrew Ford and John Palmer founded Hanover Partners in 1994. As operating professionals with product management, marketing, business strategy, and strategic finance backgrounds, they saw an opportunity to leverage their operating experience to acquire, manage, and grow a small company. This approach transitioned into a portfolio model where they would not get involved in the day-to-day operations of the companies; rather, they would be value-added investor-partners, providing engaged, resourceful stewardship for the management teams of each acquired company. As such, we have been highly selective with our acquisitions so that we can devote meaningful time to supporting each portfolio company.
While the specific sub-sectors in which we have invested vary, the commonality is companies that are niche market leaders, develop proprietary products and equipment or software, maintain a heavy focus on R&D, have talented, ownership oriented management teams, and have the potential to grow into larger organizations.
FOR SMALL SCREENS
Andrew Ford and John Palmer founded Hanover Partners in 1994. As operating professionals with product management, marketing, business strategy, and strategic finance backgrounds, they saw an opportunity to leverage their operating experience to acquire, manage, and grow a small company. This approach transitioned into a portfolio model where they would not get involved in the day-to-day operations of the companies; rather, they would be value-added investor-partners, providing engaged, resourceful stewardship for the management teams of each acquired company. As such, we have been highly selective with our acquisitions so that we can devote meaningful time to supporting each portfolio company.
While the specific sub-sectors in which we have invested vary, the commonality is companies that are niche market leaders, develop proprietary products and equipment or software, maintain a heavy focus on R&D, have talented, ownership oriented management teams, and have the potential to grow into larger organizations.
FOR BIG SCREENS
Hanover Partners does not get involved in the day-to-day operations of our portfolio companies; rather, we are active, engaged, and resourceful investor-partners who support management teams in a variety of activities, including:
- Serving as a sounding board for management
- Assisting in sourcing, screening, and recruiting additional senior managers
- Advising on growth strategies and operational improvements
- Annual budgeting and strategic planning
- Establishing best-practices, key performance indicators, and operational metrics to inform data-based decision making; as well as assisting in upgrading systems and internal controls
- Project based support such as assisting with new product roadmaps, performing customer, market, and competitive research, product pricing analysis, miscellaneous financial analyses, etc.
- Serving as the portfolio company’s corporate development operation via add-on acquisition sourcing, screening, and execution
- Structuring performance based cash compensation and incentive equity plans for senior managers and employees
- Acting as a liaison to our proven and experienced network of advisors and third-party service providers in various areas of functional expertise
For over twenty years we have maintained a consistent focus on investing in various sub-sectors within specialty manufacturing, with the common theme being product and equipment based companies with proprietary qualities to their offerings, large number of employees involved in engineering and product development, and a strong brand. In addition, we have always invested in small-to-medium sized businesses, with the majority of our portfolio companies having less than $30 million of sales at the time of our initial partnership.
Our long-history of this industry and size focus has enabled us to develop significant experience, expertise, and perspective on how to help small-to-medium sized specialty manufacturers and engineering intensive companies grow into larger businesses.
We do what we say we will do and follow through on our commitments at all stages of the investment process.
From the initial review of materials, through closing, we strive to offer sellers and intermediaries prompt and thorough follow through. In most cases, we can fund all the junior capital necessary to complete a transaction which increases both certainty of close and the speed of the transaction process.
We understand that management has a company to run and selling one’s business is a significant time and emotional commitment. Accordingly, we seek to minimize distractions for management during the sale process by both focusing on only the most critical due-diligence issues needed to validate our investment thesis, and by executing swiftly to finalize the transaction in a non-adversarial, partnership oriented approach. Generally, we close transactions within 60 days of a signed Letter of Intent.
We structure our investments to match the unique needs of each specific seller. Given our history, we are comfortable with recapitalizations with existing management, full buyouts, leadership transitions, outside management “buy ins”, and acquisitions of non-core divisions of larger companies. Also, we can structure follow-on growth capital investments in addition to acquiring a majority interest if management needs additional capital to accomplish a variety of organic and/or acquisitive growth strategies post-transaction.
We are not speculative, nor financial engineers looking for a “quick-flip”; our track-record of long-term investment horizons and conservative capital structures validates this approach to building industry leading business. On average, our hold period exceeds 7 years and we have been involved with several former and current portfolio companies for well over 10 years.
Given our focus on smaller businesses, we think it is critical to be patient, supportive, and understanding investors. Our unique approach to the capital structure and prudent use of third-party debt allows us to be flexible and long-term oriented should company specific and/or macroeconomic challenges arise. We have invested over multiple economic cycles and we strive to be a thoughtful custodian of the companies we acquire.
Our approach regarding the timing of exiting our investments is generally to defer to management’s wishes and involves a collaboration between portfolio company leadership and the board of directors. In addition, we have a strong network of third-party advisors who provide guidance on creating the optimal outcomes for all shareholders. Given management always has a substantial ownership stake in each of our portfolio companies, interests are properly aligned between company leadership and the board of directors.
Our advisory board includes operating executives from numerous industries and areas of functional expertise. We leverage their experience and perspective to assist our portfolio companies on a formal basis by building value-added boards of directors, as well as on an informal basis by soliciting their feedback on as needed basis. In addition, we maintain a large network of third-party service providers that offer assistance in the areas of executive recruiting, sales force optimization and strategy, operations, accounting and internal controls and systems, and market research.
Given our focus on small-to-medium sized companies, our interests are in building upon an already strong foundation, growing the business, expanding operations, and recruiting additional talented employees. Further, over our twenty-year history, we have never moved a portfolio company from its original location, unless otherwise to expand operations to additional facilities to accommodate growth. In addition, we are prudent and disciplined with the amount of third-party debt we use in our acquisitions; moreover, the average amount of senior leverage in our current and former investments is well-below industry averages. Accordingly, given our the conservative capital structures we offer, our portfolio companies have been able to withstand multiple economic downturns.
Without exception, we respect the company culture and honor the legacy that founders and previous owners have built. We are highly-experienced in working with privately held and family businesses and are sensitive to sellers’ wishes that a new buyer act as a respectful steward.
FOR SMALL SCREENS
Hanover Partners does not get involved in the day-to-day operations of our portfolio companies; rather, we are active, engaged, and resourceful investor-partners who support management teams in a variety of activities, including:
- Serving as a sounding board for management
- Assisting in sourcing, screening, and recruiting additional senior managers
- Advising on growth strategies and operational improvements
- Annual budgeting and strategic planning
- Establishing best-practices, key performance indicators, and operational metrics to inform data-based decision making; as well as assisting in upgrading systems and internal controls
- Project based support such as assisting with new product roadmaps, performing customer, market, and competitive research, product pricing analysis, miscellaneous financial analyses, etc.
- Serving as the portfolio company’s corporate development operation via add-on acquisition sourcing, screening, and execution
- Structuring performance based cash compensation and incentive equity plans for senior managers and employees
- Acting as a liaison to our proven and experienced network of advisors and third-party service providers in various areas of functional expertise
For over twenty years we have maintained a consistent focus on investing in various sub-sectors within specialty manufacturing, with the common theme being product and equipment based companies with proprietary qualities to their offerings, large number of employees involved in engineering and product development, and a strong brand. In addition, we have always invested in small-to-medium sized businesses, with the majority of our portfolio companies having less than $30 million of sales at the time of our initial partnership.
Our long-history of this industry and size focus has enabled us to develop significant experience, expertise, and perspective on how to help small-to-medium sized specialty manufacturers and engineering intensive companies grow into larger businesses.
We do what we say we will do and follow through on our commitments at all stages of the investment process.
From the initial review of materials, through closing, we strive to offer sellers and intermediaries prompt and thorough follow through. In most cases, we can fund all the junior capital necessary to complete a transaction which increases both certainty of close and the speed of the transaction process.
We understand that management has a company to run and selling one’s business is a significant time and emotional commitment. Accordingly, we seek to minimize distractions for management during the sale process by both focusing on only the most critical due-diligence issues needed to validate our investment thesis, and by executing swiftly to finalize the transaction in a non-adversarial, partnership oriented approach. Generally, we close transactions within 60 days of a signed Letter of Intent.
We structure our investments to match the unique needs of each specific seller. Given our history, we are comfortable with recapitalizations with existing management, full buyouts, leadership transitions, outside management “buy ins”, and acquisitions of non-core divisions of larger companies. Also, we can structure follow-on growth capital investments in addition to acquiring a majority interest if management needs additional capital to accomplish a variety of organic and/or acquisitive growth strategies post-transaction.
We are not speculative, nor financial engineers looking for a “quick-flip”; our track-record of long-term investment horizons and conservative capital structures validates this approach to building industry leading business. On average, our hold period exceeds 7 years and we have been involved with several former and current portfolio companies for well over 10 years.
Given our focus on smaller businesses, we think it is critical to be patient, supportive, and understanding investors. Our unique approach to the capital structure and prudent use of third-party debt allows us to be flexible and long-term oriented should company specific and/or macroeconomic challenges arise. We have invested over multiple economic cycles and we strive to be a thoughtful custodian of the companies we acquire.
Our approach regarding the timing of exiting our investments is generally to defer to management’s wishes and involves a collaboration between portfolio company leadership and the board of directors. In addition, we have a strong network of third-party advisors who provide guidance on creating the optimal outcomes for all shareholders. Given management always has a substantial ownership stake in each of our portfolio companies, interests are properly aligned between company leadership and the board of directors.
Our advisory board includes operating executives from numerous industries and areas of functional expertise. We leverage their experience and perspective to assist our portfolio companies on a formal basis by building value-added boards of directors, as well as on an informal basis by soliciting their feedback on as needed basis. In addition, we maintain a large network of third-party service providers that offer assistance in the areas of executive recruiting, sales force optimization and strategy, operations, accounting and internal controls and systems, and market research.
Given our focus on small-to-medium sized companies, our interests are in building upon an already strong foundation, growing the business, expanding operations, and recruiting additional talented employees. Further, over our twenty-year history, we have never moved a portfolio company from its original location, unless otherwise to expand operations to additional facilities to accommodate growth. In addition, we are prudent and disciplined with the amount of third-party debt we use in our acquisitions; moreover, the average amount of senior leverage in our current and former investments is well-below industry averages. Accordingly, given our the conservative capital structures we offer, our portfolio companies have been able to withstand multiple economic downturns.
Without exception, we respect the company culture and honor the legacy that founders and previous owners have built. We are highly-experienced in working with privately held and family businesses and are sensitive to sellers’ wishes that a new buyer act as a respectful steward.