INVESTMENT CRITERIA

We seek investment opportunities with an attractive risk-reward profile and that are positioned for substantial value creation, generally in a three-to-five year investment horizon. The investment philosophy of the firm is focused on increasing the value of the business in which it invests rather than generating returns solely from multiple expansion, market timing or high leverage. Our investment profile is as follows:

INVESTMENT SIZE
$10 million to $30 million over the life of the investment

TRANSACTION SIZE
EBITDA ranging between $5 million and $20 million
Business valuations ranging from $30 million to $100 million

COMPANY CHARACTERISTICS
Companies most often have:
(i) experienced management teams,
(ii) defensible market positions or niches,
(iii) the ability to provide value to the customer and
(iv) sustainable cash flow supported by tangible assets

INDUSTRIES
Distribution, gaming, leisure and entertainment, media and telecommunications, services, and specialty manufacturing businesses
Expertise in regulated industries

GEOGRAPHY
United States and Canada
Will consider companies headquartered in the United States with foreign subsidiaries

CAPITAL USES
Management Buyouts
Corporate Divestitures
Growth Financings
Recapitalizations
Special Situations

HB Equity believes in partnering opportunities whenever possible and appropriate. We regard each investment as a partnership with a portfolio company's management and encourage management to be equity partners in their businesses. We also look for opportunities to pursue investments alongside strategic partners who bring first-hand industry knowledge and operating expertise to an investment but do not necessarily have access to the capital markets.

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