Source
Deals come from everywhere.
Much of our deal flow is inbound and off-market. It comes from owners who want the company to stay where it is after they sell, and from the accountants, attorneys and bankers who advise them.
How Harbor works
Harbor is a holding company that buys and runs companies indefinitely.
Buy
We pay what the earnings justify.
Each deal is structured for long term ownership. That keeps our structure adaptable deal by deal. We are creative with sellers, and selective with debt.
Run
We work inside the company.
When we buy a company, we help from the day we close. From operations, finance, technology, back office and sales, we work with our management teams to help our companies grow and thrive.
Distribute
Investors are paid from what the companies earn.
Distributions come from the companies' cash, and investors keep their ownership afterward. There is no forced exit on great assets.
What we don't do
We don't buy to sell
There is no exit in the plan, so nothing is done to dress a company up for the next buyer.
We don't load up a balance sheet
Any debt is sized to the cash flow and the assets, not to the price we'd like to pay.
We don't strip a team
The people who built the company usually know more about it than we do. We'd rather back them.
We don't move a headquarters
That is the point of Harbor, not a concession we make to close.
Compared with a traditional fund
Holding period
A buyout fundHolds five to seven years and then sells.
HarborHolds permanently.
Where the return comes from
A buyout fundThe sale.
HarborThe companies annual earnings.
Debt
A buyout fundUsually as much as the market allows.
HarborSized to the assets and the cash flow.
Fees
A buyout fundMultiple layers of management fees.
HarborFee-light.
What's left at the end
A buyout fundThe company belongs to someone else.
HarborInvestors still own it.