Lower middle market private equity firm
Hanover Partners
- HeadquartersSan Francisco, CA S7
- Founded1994 S1
- Websitehanoverpartners.com
- Last verifiedNovember 5, 2026
At a glance
| EBITDA range | $1.5M to $8M S7 |
|---|---|
| Revenue range | $8M+ S2 |
| Deal types | Platform, Add-on S2 |
| Geography | United States, Canada S2 |
| Sectors | Industrial & Manufacturing |
What Hanover Partners buys
Hanover Partners has bought small specialty manufacturers since 1994, from offices in San Francisco and Oregon. It looks for proprietary products, engineered equipment, industrial technology and capital equipment, plus niche branded consumer products, software sold to businesses and, now and then, industrial or commercial services. Its criteria page asks for at least $8 million of revenue, $1.5 million to $8 million of adjusted earnings, stated as EBIT on its criteria page and EBITDA in its overview, with margins of 10% or better, gross margins above 25%, and an enterprise value of $8 million to $60 million. New platforms can be in the United States or Canada.
Hanover buys 65% to 100% of a company and wants managers to keep or earn a real stake. With its long-standing institutional investors it can usually supply all the equity and junior debt, so it uses little bank debt and normally pays cash. Its average hold has run past seven years. A company below those minimums can still fit as an add-on to a current holding such as Ska Fabricating or AGA Tools & Products.
Recent deals
Announced in the 24 months before November 5, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| April 2026 | AGA Tools & ProductsEscondido, California maker of custom tools for auto repair shops, bought from its family owners, who reinvested alongside Hanover | Platform | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S4.
Current Investments
- AGA Tools & Products
- Confidential (conveyorized car wash equipment)
- Ska Fabricating
- Pyramid Technologies
- Wohler Technologies
Past investments: Blast Deflectors Group, Westside Equipment Holdings, Powertronix, Ligchine International, Consolidated Equipment Group, Freedom Communication Technologies, Audio Precision, Hamer, Bri-Mar Manufacturing, Handi Quilter, Solidscape, Rugby Manufacturing
Greymont’s take
How Hanover Partners fits a seller
Hanover suits the owner of a small engineered-product company who wants a patient buyer and a simple, mostly cash deal. It says it rarely relies on seller notes, keeps debt low and has not moved a portfolio company out of its home town except to add space. The long holds are real: it still lists Wohler Technologies, bought in 2006, and Pyramid Technologies, bought in 2008. The April 2026 AGA Tools deal, where the family owners reinvested, shows the usual shape.
The fit is weaker for a service business or a company with thin margins, since the firm screens for 10% EBIT margins and 25% gross margins. Owners should ask how much they would be expected to reinvest, who holds the junior debt, and how exit timing is decided, since Hanover says it usually defers to management and that holds can pass ten years.
Questions owners ask
How big a company does Hanover Partners look for?
Its criteria page asks for at least $8 million of revenue, $1.5 million to $8 million of adjusted earnings, stated as EBIT on its criteria page and EBITDA in its overview, and an enterprise value of $8 million to $60 million. Smaller companies are considered as add-ons to a current holding.
How long does Hanover usually hold a company?
Its FAQ says the average hold has been more than seven years and that it generally aims for five to ten. Wohler Technologies, bought in 2006, and Pyramid Technologies, bought in 2008, are still on its current list.
How quickly can Hanover close a deal?
It says closing can take 45 to 90 days after a signed letter of intent, with 60 days as the average. Part of the reason is that it can usually provide all the junior capital itself.
Does an owner have to carry a seller note?
Hanover says it normally pays in cash and does not depend on seller financing unless the seller wants it. It does encourage owners who stay in leadership to reinvest in the company.
Sources
- S1Hanover Partners home page Accessed November 5, 2026
- S2Hanover Partners: Investment Criteria Accessed November 5, 2026
- S3Hanover Partners: About Us Accessed November 5, 2026
- S4Hanover Partners: Current Portfolio and Realized Investments Accessed November 5, 2026
- S5Hanover Partners: FAQs Accessed November 5, 2026
- S6Hanover Partners: For Intermediaries (news and press releases) Accessed November 5, 2026
- S7Hanover Partners one-page overview Accessed November 5, 2026
- S8Hanover Partners: AGA Tools & Products (acquired April 2026) Accessed November 5, 2026
- S9Hanover Partners Marks Three-Decades Long Consistent Approach to Business Building (2024) Accessed November 5, 2026
- S10Hanover Exits Two Companies (Westside Equipment and Powertronix) Accessed November 5, 2026
- S11Hanover Partners: Powertronix (acquired December 2021) Accessed November 5, 2026
- S12Hanover Partners: Westside Equipment Holdings (acquired October 2019) Accessed November 5, 2026
- S13Hanover Partners purchase of Blast Deflectors (March 21, 2018) Accessed November 5, 2026
- S14Hanover Partners: Blast Deflectors Group Accessed November 5, 2026
- S15Hanover Partners: Confidential (conveyorized car wash equipment) Accessed November 5, 2026
- S16Hanover Partners: Pyramid Technologies (acquired April 2008) Accessed November 5, 2026
- S17Hanover Partners: Wohler Technologies (acquired August 2006) Accessed November 5, 2026
- S18Hanover Partners: Ska Fab Holdings (acquired December 2020) Accessed November 5, 2026
- S19Greyrock Capital Group: News Accessed November 5, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Hanover Partners. Figures are as reported on the dates shown and may have changed. Request a correction