At Lighthouse Partners, we believe in guiding businesses toward their fullest potential.
Our approach is to form complementary owner/operator partnerships that synergize our strategic expertise, operational insights, and advanced technological thinking with the existing management’s craftsmanship and day-to-day operational acumen. This model is crafted to elevate businesses to the next level, leveraging innovative strategies and deep operational knowledge.
Investment Guidelines.
The following characteristics guide our investment evaluation and selection process.
- Strong Owners/Operators: We seek dynamic owners/operators passionate about elevating their businesses. Our strategy is to form strategic partnerships with these leaders, offering them the resources and expertise to modernize and grow their businesses to new heights.
- Geographic Location: Our focus is on businesses located within a 90-minute radius of Fairfield County, CT, tapping into the vibrant economic landscape of the region.
- Financial Criteria: We target companies with an EBITDA of approximately $1M and robust net profit margins of 20%. Ideal candidates have annual revenues between $3 million and $5 million, with limited debt and low capital expenditure requirements.
- Tech and Operational Efficiency: We specialize in transforming businesses with underutilized or absent technological infrastructure, harnessing the power of technology to drive efficiency and growth.
- Low Seasonality: Our investment strategy prioritizes businesses with year-round demand and revenue, ensuring steady and predictable financial performance.
- High Recurring Revenue: We value businesses characterized by ongoing, regular customer engagement, rather than relying solely on one-off transactions, for stable and sustained revenue streams.
- Inelastic Demand: Sectors where services maintain steady demand despite price changes are key to our investment model, ensuring revenue resilience.
- AI Resistance: Our portfolio focuses on sectors requiring hands-on, skilled labor or highly personalized services, less prone to disruption by artificial intelligence.
- Economic Resilience: We invest in businesses offering products or services that remain in demand regardless of economic fluctuations, ensuring long-term stability.
- Climate Change Advantaged: Recognizing the impact of climate change, we look for businesses with increasing demand driven by the need for adaptation and mitigation in this changing environment.
Our Model.
- Collaborative Model: Acquiring a majority stake while partnering closely with the existing team’s expertise in core operations.
- Systematization Focus: Enhancing efficiency in front and back office operations through technology adoption and systematic processes.
- Value-Driven Growth: Supporting expansion through strategic, operational optimizations, and market exploration.
- Long-Term Vision: Committing to sustainable growth and shared success, respecting the company’s legacy and future aspirations.
- Integrity: Integrity and ethics are at the core of everything we do. We hold ourselves to the highest professionalism, transparency, and accountability standards.
- Knowledge: With a diverse team of industry specialists and advisors, we possess deep knowledge across various sectors. This expertise enables us to identify emerging trends, evaluate market dynamics, and seize opportunities with confidence.