Private equity (PE) firms rose to prominence following the massive wave of restructuring across corporate America in the 1980s. With their large pools of capital and drive to maximize investment, PE companies began acquiring businesses using various strategies, such as leveraged buyouts, and embarked on corporate turnaround initiatives, bringing their acquisitions to profitability in as short an amount of time as possible.
PE firms have received criticism from various sectors, including allegations that they rely too much on leverage and financial engineering and that they often strip an acquired company of its assets to create short-term, unsustainable gains. From the investor side, private equity is seen as something that has a high entry barrier, with many investors unable to afford to buy in. These have resulted in the PE industry being seen as ‘cutthroat’ and an exclusive club, not open to new members.
Seeking to democratize the industry and change how it is perceived, M. Alex Burns, CFP®, established Herondale, a private equity holding firm that takes a people-centric approach. Burns brings almost a decade of experience in the wealth management industry, leveraging his technical analysis and financial planning background when reviewing acquisition opportunities. Before joining the financial services world, he was a software sales account manager at a Fortune 500 technology company.
When looking for a business to invest in, Herondale prioritizes those that operate primarily in the US in well-established industries, such as automotive retail, residential construction, aviation, and semiconductors. These industries have established fundamentals and minimal disruption risk, demonstrating strong growth trends. One example is Shin Global Cabinets & Stone, which Herondale recently acquired in partnership with AJA Financial. Shin Global is a Florida-based supplier of premium kitchen cabinets, stone countertops, sinks, and vinyl plank flooring. Financially, Herondale’s ideal acquisition target has an annual revenue of $7.5 million or above and an EBITDA of at least $2 million.
M. Alex Burns, CFP®, Managing Partner of Herondale
“People are always going to buy new cars, build new kitchens, and fly on airplanes,” Burns says. “These industries will always have demand, and we acquire businesses in these fields to make them more nimble and efficient, creating more profitability.”
For example, Burns observed that some small and medium businesses still do manual inventory management, which consumes significant labor resources and has a greater degree of human error. By investing in automated inventory management and other enterprise resource management systems, Herondale allows the business to reallocate its resources for sustainable growth initiatives, such as marketing or upgrading production capacity.
As part of his mission to make private equity more people-centric, Burns also endeavors to make Herondale a better place to work. He is a huge proponent of remote work and lenient paid time off policies, as these allow for better work-life balance and improved business performance in the hands of the right kind of employees. In the past, Burns worked with a life coach, and he found it extremely rewarding. He wants to extend this benefit to the rest of Herondale’s workforce, allowing them to reap the long-term rewards.
“I believe my business isn’t all about turning a profit; I don’t think being successful and having a fulfilled team are mutually exclusive,” Burns says. “As a people-centric business leader, I aim to empower people and make Herondale a place where they would want to spend the rest of their careers.”
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should consult with a qualified financial advisor or other professional to seek personalized guidance before making any financial or investment decisions. All investments carry risks, and past performance is not indicative of future results.
Published by: Martin De Juan
