Investment Focus
Transaction Structures 
• Recapitalizations
• Transitional Recapitalizations
• Management Buy-Outs
• Industry Consolidations
Harren Equity Partners have complete investment authority over its dedicated equity fund. Consequently, Harren can accommodate virtually any transaction structure. Our professionals work with business owners to accomplish both their short term and long term objectives.
Among the many objectives a Harren transaction can accomplish are the following:
- Personal liquidity and estate planning
- Corporate access to significant capital to fund growth, capital expenditures and add-on or bolt-on acquisitions
- Removal from existing personal guarantees
- Transition of equity to second generation of executives
- Opportunity to retain significant amounts of equity to participate in the post-transaction growth
Recapitalizations
Company owners often have substantial personal goals or needs (e.g. liquidity, diversification, estate planning) that they are trying to address despite the fact they remain quite excited about the long-term prospects of their business and still desire to remain active with their business in the intermediate term. Through a recapitalization with Harren they can sell a significant stake of their business, yet retain meaningful equity ownership. In addition, many of our partners have found this particularly attractive given Harren’s operationally-focused approach to be a value-add partner and access to a deep pool of capital without personal guarantees.
Transitional Recapitalizations
Often Harren is approached by business owners who are ready to remove themselves from the business but are looking to transition ownership to family members and/or current management who do not have a meaningful equity stake despite their key role in the company’s success to date. These situations are often filled with many interpersonal and family dynamics that require flexibility and experience in dealing with those situations. Harren has had tremendous success in such circumstances due to our structuring flexibility and partnership oriented approach.
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Often existing managers are presented with an opportunity to acquire the business they are managing, but need a financial partner that will enable them to close on the opportunity. These executive are generally looking for a partner who will take the time to understand the opportunities in the marketplace and then provide the needed capital to continue to grow the business or implement strategic changes that previous ownership was unwilling or unable to do. In addition, Harren has also worked with talented managers who have decided that they have specific targets in mind in an industry about which they are knowledgeable. Harren will work with these managers in pursuing opportunities. Given Harren’s belief that management’s interests should be closely aligned with ours, managers have found that they are often able to achieve significantly greater ownership through a transaction with Harren.
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Harren has experienced a tremendous amount of success in making an investment in a platform company and growing the company via add-on acquisitions. Harren principals have experience with this in a number of fragmented industries and believe that our willingness to roll up our sleeves and work side-by-side with management is particularly helpful in this strategy as the potential for improved strategic positioning and synergies often come with heightened risk due to integration issues. Our experience with these issues and our operational focus make us a partner of choice for this strategy.
Underperforming / Distressed Businesses
Given Harren’s operational focus and direct operating experience, as well as our willingness to be a proactive hands-on partner, we are willing to look at situations where a company is underperforming and/or distressed. These situations are particularly attractive to us in industries where we have substantial historical experience in. Harren’s interest is predicated on distress or complications due to balance sheet and/or operational issues, but with a company participating in an otherwise attractive industry.
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