Investment Criteria

Ludlow Capital is focused on a long-term investment in Cincinnati. We are interested in established and profitable businesses with leadership position or strength in the local Cincinnati market, with identifiable opportunities for expansion regionally or nationally.

The criteria below represent the attributes we seek when considering an acquisition opportunity. We do not expect that a company will possess all of these attributes to be an attractive business to acquire. Individual companies and the industries in which they operate are unique; there are strengths, weaknesses, opportunities, and threats present for all businesses. As such, our goal in evaluation and diligence of any company is to understand the fundamentals of that business and its inherent opportunities and risks in achieving long-term growth and profitability.

Priority Industries

  • Established CPG: Consumer brands with sustained growth through traditional retail channels

  • DTC eCommerce: Online eComm businesses with growing revenues and a strong recurring customer base

  • B2C SaaS/Tech: Technology service solving a clear consumer problem with identifiable market differentiation

  • Retail/Food & Beverage: Physical retail with multiple, diversified revenue streams and opportunity for channel expansion

Company Characteristics

  • Industry leader in Cincinnati or regional Midwest market

  • Growing customer base with high retention

  • Demonstrated recurring revenues

  • Non-cyclical and recession-resistant

  • Strong management team and engaged employee base

  • Identifiable growth strategies

Financial Criteria

  • EBITDA of $500k-$2.5M

  • Revenues of $2M-$20M (with 10%+ annual growth)

  • High gross margins

  • History of strong and predictable cash flows

Situational Characteristics

  • Owner looking to sell their business to retire

  • Entrepreneur or long-term owner ready for next venture

  • Owner looking to sell a majority stake and remain a minority owner in a more focused role