Platform Acquisitions (Companies)
HomeRiver does two types of acquisitions - platforms, where we buy an entire company and the senior management stays in place, and portfolios, where we buy only management contracts and senior management exits the business.
HomeRiver typically enters new markets by acquiring best-in-class local operators, whose selling principals become our partners. These professionals share our vision and seek to be part of something bigger and better.
If you sell your business to HomeRiver as a platform, you will be in the company of other great operators across the country. You will also get paid a salary to continue running the business as a local division of HomeRiver.
The purchase price for your company will be competitive in the market. Historically, we have paid sellers the majority of the purchase price in cash at closing with the balance in HomeRiver equity. This basically has made these sellers our partners – working together to make our business succeed. And by deciding to “roll over” a portion of the purchase price into HomeRiver equity, these sellers have partnered not only with best-in-class operators, but also with the experienced institutional investors who have backed and continue to invest in HomeRiver.
An important side benefit of receiving a portion of your purchase price in equity is potentially tax-deferred treatment.