Case Study · Buy-Side
Engineering Services Acquisition: From Search to Close in 4 Months
An ex-Navy professional based in North Carolina sought to acquire and operate a business in the $1M–$2M EBITDA range. Lighthouse Capital identified a boring and drilling company listed at $4.85M, negotiated the purchase price down to $4.4M — saving the buyer over $400,000 — and raised $250,000 of the required cash injection through its investor network. The seller agreed to stay on for one year as a transition advisor. The buyer cash-flowed over $250,000 in Year 1 and is tracking toward $500,000+ by Year 3.
The Challenge
Finding the Right Fit in an Unfamiliar Industry
The buyer was an ex-Navy professional living in North Carolina, looking to acquire and operate a business in the $1M–$2M EBITDA range. He had no background in engineering or construction services and needed a company where he could step in as CEO, learn the operation, and build long-term value. The search required finding a business with the right financial profile, a geography that worked, and — critically — a seller willing to support the transition.
The Solution
Creative Structuring and Capital Raising
LCG identified a boring and drilling company that had been listed at $4.85M. Through direct negotiation, we brought the purchase price down to $4.4M — saving the buyer over $400,000. The deal included $400,000 in real estate and was structured with 15% seller financing. The buyer needed $350,000 in cash injection to close; LCG raised $250,000 of that through its investor network. The investment structure was designed to protect both the buyer and investors: the buyer received a $150,000 annual salary, the company reserved 20% of all profit in savings for the first two years, and 80% of distributions went to paying back investors until they were made whole. The seller agreed to stay on for one year as an advisor — focusing on management, quoting, and getting the buyer up to speed in an industry he was entering for the first time.
The Results
Strong Cash Flow from Year One
The deal closed in 4 months, from first engagement in May 2024 to close in August 2024. The buyer cash-flowed over $250,000 in Year 1, is on pace for over $300,000 in Year 2, and is tracking toward $500,000+ in cash flow by Year 3. Investors received their full capital return within 2 years and retained approximately 5% equity in the business.
By the Numbers
Deal outcomes that speak for themselves.
From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.
Your Turn
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