How we choose the right business
At Hive Industries, we search through hundreds of potential companies to try to find the perfect fit. We filter every businesses we encounter through our investing criteria to optimize our chances of investing in the right business. Most of the guiding criteria below are specifically designed for our lower middle market industry focus. We use the investing criteria as a guide and not as a strict rule.
A great business
We are searching for a healthy, stable,and profitable company.
- Owner actively seeking to sell their business
- Healthy customer and supplier relationships
- Low employee turnover
- Strong internal employee culture
Solid Financials
We are targeting a financially stable firm with a history of profitability.
- EBITDA between $1M-$6M
- EBITDA Margin of at least 10% or better
- Low customer concentration with no customer making up more than 20% of business
- Strong recurring revenues with Customer Churn Rate of 25% or less
- Long history of profitability: at least 3 years
A Stable Industry
We are looking for a business within an industry that has the following characteristics:
- Fragmented
- B2B
- Non-cyclical
- Low possibility of technological obsolesce
- Preferably a niche business focused within a much broader industry
Give us a call to see how we can help cement your legacy.
