Investment Criteria
Our Philosophy
Highgate screens opportunities by business model archetype rather than by industry sub-sector.
We underwrite every investment on two dimensions: the quality of the business and the fit of the partnership. Both have to be exciting.
What We Look For
Industry Dynamics
- Simple Business Models
- Stable Fundamentals
- Fragmented Markets
- Physically Delivered Services
Business Characteristics
- Strong Competitive Position
- Minimal AI Disruption Risk
- Diversified Customer Base
- Established Operating History
Financial Metrics
- Revenue / Margin Visibility
- Cash Flow History
- Low Capex and Working Capital
- EBITDA of $1M – $3M
Team & Culture
- Strong Reputation in Market
- Cultural Alignment With Owner
- Operators We Like and Trust
- Employee Commitment
Fit With Our Right to Win
- Unique Buyer Angle
- Go-Forward Leadership Plan
- Extended Owner Transition
- Connections to Leverage
Clear Value Creation Plan
- Operational and AI Enablement
- Organic Growth Levers
- Employee Growth
- Roll-Up Acquisition Visibility
Deal Parameters
- EBITDA
- $1M – $3M
- Margin Profile
- 15%+ EBITDA margins, historically durable across market cycles
- Transaction Structure
- Control buyouts with extended owner transition periods, flexible on structures that include meaningful equity rollover
- Hold Period
- Long term, 8–10 years
- Geography
- Anchored in Greater Philadelphia, active across the Northeast and Mid-Atlantic
Where We Spend Our Time
Commercial & Industrial Services
Maintenance, inspection, testing and repair services delivered to commercial and industrial customers. Buyers must use these services as a condition of operating their business.
- Commercial Refrigeration
- Food Service Infrastructure
- Water / Wastewater Infrastructure
Healthcare Infrastructure Services
Certification, validation and maintenance services delivered to hospitals, labs, pharma manufacturing facilities and R&D centers. Regulatory requirements and accreditation standards require these services to maintain compliance.
- Medical Gas Verification
- Sterilizer and Equipment Validation
- Cleanroom Certification
Residential Home Services
High-frequency services delivered to homeowners with recurring property maintenance demands. Ticket sizes are small relative to household income and the purchase decision runs on trust and referrals.
- Generator Service
- Irrigation
- Lawn Treatment
These industry examples are illustrative of where we are looking and not the limits of what we will consider. If our investment criteria sound like your business, we would welcome a conversation.
For Advisors
Highgate works actively with business brokers, investment bankers, M&A advisors, accountants and lawyers representing owners. If you have an opportunity that fits the profile above, please reach out.