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OUR PHILOSOPHY
We operate with a decentralized structure, allowing our companies to maintain autonomy without our involvement in their day-to-day operations. Committed to a buy-and-hold-forever strategy, we have never sold a business, meaning that selling to us ensures a permanent home for your company. Our culture of sharing best practices enables you to leverage the extensive vertical market software expertise we have developed from owning software companies.
ACQUISITION CRITERIA
Technology
We acquire software companies that sell a proprietary solution that is highly tailored to fit the needs of one or more vertical markets.
Industry
We are interested in expanding in our existing verticals as well as adding new verticals via acquisition.
Size
Businesses with hundreds of employees to those with a handful have found their home at FrontLine
Geography
While our businesses service customers across the globe, our focus is on companies located within North America.
ACQUISITION OVERVIEW
Our focus is to acquire businesses with growth potential. Our experience and focus allows us to provide valuations and discuss fit quickly and efficiently.
We start by benchmarking the performance of the acquired business and sharing our experience with management and all employees.
Once an acquired business is operating efficiently, we focus on building the business through both organic and acquired growth.
Acquire
While we are open to discussing any opportunity - our preferred businesses have the following characteristics:
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Diversified Customer Base
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Mission Critical Enterprise Software Solutions
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Low Customer Attrition
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Leading or Increasing Market Share
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Fragmented Competition
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Potential to grow through Geographic Expansion, Product Expansion, & Acquisition
Manage
How do we do this? First, we coach.
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We start by benchmarking the performance of the acquired business and sharing our experience with management and all employees – including introducing them to our best-performing businesses. We use a set of operating ratios and metrics to benchmark each of our VMS businesses with the goal of understanding and identifying areas to improve. These operating ratios and metrics help us to appropriately match costs, including sales and marketing, research and development, and general and administration, to revenues.
Build
Once an acquired business is operating efficiently, we focus on building the business through both organic and acquired growth.
Stay with us
If you sell – can you stay – Yes.
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Many of Harris’ senior leaders joined when they sold their businesses to us. The decision to stay and join Harris is one we make together. Once you are part of the Harris family we work collaboratively with you to map out what you want from your career.
TOP 4 REASONS AN ENTREPRENEUR SELLS TO HARRIS
1
YOUR EMPLOYEES
Long term committment to your employees post acquisition - to their employment, career development and opportunities to learn and grow.
2
YOUR CUSTOMERS
Long term commitment to your customers – we are in our markets forever and therefore invest considerable resources to engage, focus and build long term customer relationships.
3
YOUR PRODUCT
Long term commitment to your product – we do not believe in forcing customers to change software solutions and our preference is to enhance and update the solutions we acquire.
4
PAYING CASH
We provide the majority of cash on the closing of the acquisition with a portion held for a period of time to support the representations and warranties included in our purchase agreement.
TOP 4 REASONS AN INVESTOR SELLS TO HARRIS
1
WE CLOSE
We are in the business of acquiring other companies – it is what we do for a living – we close.
2
WE'RE EFFICIENT
We are efficient, can move quickly and have the resources to scale our efforts when required.
3
FINANCIALS
We have the financial resources for the investments we make. We have the committed capital and do not rely on third party financing.
4
WE UNDERSTAND
We understand the importance of certain representations, warranties and terms required to meet your closing requirements.
