PROFILE
APPROACH
Harbinger can quickly consummate an investment by analyzing, structuring, and executing a transaction in a timely manner. We maintain confidentiality when negotiating a deal and seek to minimize an acquisition’s impact on day-to-day operations. We seek targets with growth potential and special situations with transactional arbitrage opportunities.
We seek companies with sustainable advantages and the potential for growth, new product launches, or industry consolidation. Attractive targets may have a recognized brand name, strong market share position, or unique distribution capabilities.
We understand the risks and benefits of cross border transactions and consider key success factors: taxes, political stability, capital controls, economic trends, and labor mobility. On a case by case basis, we determine the appropriate transaction structure – be it a joint venture, recapitalization, debt offering, minority investment, or acquisition.
INVESTMENT PREFERENCES:
The ideal acquisition will possess the majority of the following characteristics:
Industry
• Niche, fragmented, and >$400 million in size
• Stable or growing with limited cyclicality
• Low to moderate capital intensity
• Strong industry margins with low technology risk
Management
• Owner wants to transition out of day to day oversight into limited role or retirement while supporting accelerated growth of company
• Strong, motivated middle management in place
• Capable human assets motivated and committed to entity’s success
Company
• At least 3 years of stable operations and finances
• Strong reputation within industry and with customer base
• Strong customer base with low customer concentration
• Recurring revenues and stable repeat business with strong growth potential
• Sustainable competitive advantage in product or distribution
Financial
• Annual sales of $5 million to $20 million
• EBITDA of at least $1 million
• Sustained margins & profitability with steady or growing revenue
• Strong balance sheet (or discounted EV in case of unhealthy financials)
Geography • Prefer Southeastern US, Latin America, or India