About Us

Honey Creek Capital focuses efforts on investing in small and mid market businesses.

In addition to making financial investments, we provide value added services to maximize investment return.  Services include strategic planning, management training and advisory role activities.

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We fundamentally believe focused efforts drive success. Small and mid market companies can benefit greatly from focus; strong, active boards; and additional capital to create superior investment returns.

Transaction Types

Honey Creek Capital pursues a wide range of transactions, each targeting the specific needs of the business’ owners and the objectives of the management teams, including:

Management Buyouts / Growth Capital:

Management teams who want to buy and grow their business for themselves, but need a partner to accomplish the transaction.

Recapitalizations:

Business owners seeking partial liquidity for the equity value they have created, achieving personal asset diversification, while retaining operational control and leadership of their company.

Independent Sponsors:

Executives, who have identified a compelling acquisition candidate they desire to lead, yet require an experienced partner to provide the additional resources and contacts needed to acquire, finance and grow the business.

Generational / Management Transitions:

Owners who want to “sell” the business to the next family generation or the management team.

Distressed Deals / Reorganizations:

Underperforming or “story” companies going through significant transition, either due to balance sheet needs or challenging operational, management or ownership circumstances; companies in difficult or changing industries or those with incomplete management teams.

 

Investment Criteria: Company Characteristics

• EBITDA of $500,000 – $2,000,000

• Companies whose owners and/or management team are seeking a value-added partner to help them grow the business.

• Underperforming companies and “story” deals (businesses going through significant transition or those with incomplete management teams) are acceptable.

 

Geography

• Business must be located within 200 miles of greater Indianapolis area.

• Honey Creek Capital does not target any specific industry, but does not avoid any industry either, including out-of-favor industries.

 

Industries of Specific Interest

• Retail, commercial and industrial service companies (particularly those with a tangible element requiring in-person contact with the customer)

• Niche manufacturing businesses (particularly those with electronic smarts added to traditionally mechanical functions)

• Environmental services

• Healthcare services

• Value-added distributors

• Branded consumer products

• Proprietary education

• Safety and security products

 

Other Considerations

• Growing or large and fragmented markets

• Proven, clear long-term need for products and/or services

• Products with limited risk of technological obsolescence

• Products or services that capture full value chain to end-user

• If cyclical, must clearly understand where circumstances of cycle

• Preference for existing management to grow business and own equity

 

Investments Honey Creek Capital Does Not Consider

• Start-up companies or pre-revenue business

• Real Estate Investments

 

How Honey Creek Capital Adds Value

• Application of extensive investment and business management expertise to help our portfolio companies and their management teams achieve superior business performance and financial results.

• Principals are active Board members; but do not assume management roles in the company.

• We work collaboratively with management to:

– Set strategic objectives and priorities
– Identify sales growth opportunities
– Improve operational effectiveness
– Handle business complexities
– Source and complete add-on acquisitions and financings

We provide management tools, third-party resources and capital in which our executives, otherwise, would not have access.

 

What Sets Honey Creek Capital Apart?

• Favors operating companies and does not need to exit within specified time period

• Seeks superior returns for management and shareholders

• Dedicated to building companies in Central Indiana to build strong local economy

• Planning, performance and people engaged in process

• Passion to help you succeed while we receive fair return on investment

• Respect in Central Indiana through personal business success

• Wide sphere of influence with existing and potential investors