Lindbergh Spa: Questions to Michele Corradi | Value Bridge
Lindbergh Spa: CEO - Michele Corradi
Capital Allocation
04/10/2023 How do you balance organic growth versus growth through M&A? What criteria do you use before acquiring?
There’s no absolute truth. We grow organically through long, profitable customer relationships, up-selling, and cross-selling, which builds strong loyalty. M&A is an opportunity, especially post-IPO. The criteria are simple: buy only if it fits industrially with our business, only what we can afford without harming financial health, and if it’s the fastest way to enter a new market or business.
04/10/2023 Why do you do M&A through subsidiaries and keep minority interests instead of buying 100% outright?
There’s no one rule. Sometimes the selling partner needs to manage the company for a transition period to organize activities better. Leaving them in with minority shares can help, with a possible buyout later via earn-out. Financial commitment also matters, buying 100% requires more resources than 51%. The key is maintaining control; I don’t invest as a minority shareholder.
04/10/2023 What are your future capital allocation plans? Will dividends return?
From 2024, we will consider returning dividends, depending on ongoing investments and the Group’s financial health. No promises, but it will definitely be discussed.
08/05/2024 How has the investment by William Thorndike’s Sun Mountain Partners influenced Lindbergh?
Their investment brought great satisfaction and increased international interest, especially from retail investors and other foreign funds. They are passive investors, not involved in strategic decisions, but we maintain a good relationship and sometimes seek their advice, especially on capital allocation.
08/05/2024 What is your philosophy on capital allocation?
We started with very little capital and have grown the company to be worth around 25-28 million. Our philosophy is to invest where we see the most promising opportunities to grow the company healthily and create value for all shareholders. Having grown from zero to this point, I have no limits on future growth.
08/01/2025 What does the sale of Lindbergh France mean strategically and financially?
The margins were not at the level of Lindbergh Italia yet. After taking control in late 2021, we improved the company from losing 2.5 million euros annually on 8-9 million in sales to break-even on 10.5-11 million in revenues. However, despite this progress, we struggled to reach the profitability we wanted due to market readiness, competition, and operational challenges. Considering new growth opportunities and risks, we decided it was the right time to step back and focus on more promising and less risky activities, especially in Italy.
08/01/2025 Who bought Lindbergh France and how was the sale managed?
We sold to a company already operating in the same sector, known to our clients in Italy and France. This choice was made to ensure continuity of service for our customers, not just to accept the best offer. We are supporting the new supplier during the transition, especially with IT system migration, to guarantee a smooth handover without disruptions.
08/01/2025 How do you approach valuation and pricing when acquiring HVAC businesses?
The market has more sellers than buyers, giving us the advantage to choose. We value companies not just by multiples but also by cash flow and deal terms, like deferred payments and seller involvement for a year or two. It’s about the overall conditions, not just price. We’ve stayed within our parameters and aim to make the most of opportunities while managing cash effectively.
25/03/2025 What is your typical deal structure regarding payment and seller financing?
Usually for the moment it is 50% of the closing cash and then the seller accepts the postponement of payment one, two, three years. Two years is the average. So we can sell financing with the activity around 50% of the total price of the deal. So for us it's very important to manage cash and maybe to spend a little bit more as a multiple but to get a good condition for cash postponement.
25/03/2025 Since you pay gradually for acquisitions, are you planning to introduce dividends?
I think that as long as we have growth opportunities, dividends will be too expensive.
Competitive Advantage
04/10/2023 What does Lindbergh do and what makes it unique?
Lindbergh is a group active in logistics, MRO (Maintenance, Repair and Operations), and circular economy/waste management. Delivering spare parts by 7 a.m. inside technicians' vans is almost unique. We combine this with other services like waste collection to maximize technician productivity, making us truly unique.
04/10/2023 How much resistance did you face from customers when raising prices or changing contracts last year?
The resistance was reasonable, not excessive. Customers understood the situation and accepted price revisions. In France, resistance is higher due to fewer long-term relationships compared to Italy.
08/05/2024 Does Lindbergh’s complexity and regulation give it a competitive advantage?
Yes, the complexity and strict regulations create a high barrier to entry, making it hard for others to replicate our business quickly. This complexity also means we must carefully balance adding new services with managing the increased bureaucracy and processes.
08/01/2025 How did Lindbergh, a micro-cap company, acquire a major client like LVMH?
We started working with some LVMH brands back in 2012-2013, delivering waste management services to a few production sites in Italy. They initially contacted us via LinkedIn because of their waste management needs. Over the years, we built trust through reliability, attention, and flexibility. This project was developed together with them from scratch, with open discussions on what to do and pricing. Our flexibility and ability to deliver made us their chosen partner.
Operations
04/10/2023 What does a typical transaction with your customers look like?
Our services maximize technician productivity by saving time on non-value-added activities. Providing services at night when technicians are not productive saves time and money for customers. Also, growing environmental awareness and proper waste management are big strengths for us.
04/10/2023 How has Lindbergh changed in the last 3-5 years?
We took two important steps: entering the French market in 2020 through a minority stake, then gaining 80% ownership in 2021, opening a new market with familiar international customers. Another key step was the IPO in December 2021.
04/10/2023 What are the main differences between the French and Italian markets?
Operationally, Italy insources all operations, France outsources most. The French labor market is more complex, so internalizing services requires careful evaluation. France offers a huge market opportunity with many large companies, while Italy has many small, local companies. Some national operators offer night delivery in France, but by adding services like waste management, we will be unique there too.
04/10/2023 Why did you start offering technical assistance yourselves? What margins do you expect?
Italy’s market is fragmented with no national operator offering consistent technical assistance with unique services. Experiences in France encouraged us to integrate these services and technicians. We aim to be the first Italian operator in the thermo-hydraulic sector, avoiding competition with our customers. We expect margin improvements through process optimization and centralized management.
08/05/2024 What does Lindbergh do in simple terms?
Lindbergh provides logistics services with a tech platform and app that technicians use to order deliveries and refills. We deliver spare parts inside technicians' vans at night, manage thousands of keys, and also handle withdrawals like supplies and work clothes. We serve large companies that manage technical assistance networks, not individual technicians. In Italy, we offer a full range of services, while in France, we currently focus mainly on night deliveries.
08/05/2024 What are the biggest challenges of running Lindbergh?
The main challenges are working at night, which requires finding reliable people willing to work those hours and cover many kilometers. Also, managing industrial waste is complex due to strict Italian laws, requiring careful processes and document management. We have four centers to consolidate waste, which took years to get authorized. Additionally, coordinating night workers and warehouse staff efficiently with the right tools and processes adds complexity, especially since we offer many different services beyond just deliveries.
08/05/2024 How does Lindbergh balance adding new services with managing complexity?
We constantly review and optimize our processes and information systems to handle new services efficiently. Over the years, we moved from a simpler setup to a more complex one, so now we focus on harmonizing systems and reorganizing internally, like creating Business Units. This evolution is natural business growth and keeps the company dynamic.
08/05/2024 How do you and Marco make decisions for Lindbergh?
We decide quickly and are always in agreement on major choices. Our different backgrounds, me as an economist and Marco as an engineer, complement each other well, which is part of our success.
08/05/2024 How involved are you and Marco in Lindbergh’s daily operations?
We see each other daily and are both active in the company. Marco focuses on process optimization and logistics, while I handle relationships and overall strategy. We collaborate closely on strategic decisions.
08/01/2025 Do you promote junior people within Lindbergh to take on leadership roles?
Yes, we focus on growing long-term employees, especially young people who have been with us for years. While they may initially lack managerial experience, we invest in building their skills. It’s very satisfying to see them take on important responsibilities after a few years, and it’s an effective way to develop leadership internally.
25/03/2025 Will deal sourcing change as the company grows?
I think it depends on how much we want to push the foot on the accelerator. But today we have plenty of opportunities on the table. Again, we can do some cherry picking, which is good as you can imagine. But yes, today it's enough just with, you know, the word of mouth, so people talking to one another.
25/03/2025 How do you handle the founder leaving after six months in small companies you buy?
When we buy a company of roughly a couple of million, there is already a small structure. Our transition is very smooth. We keep the name of the company. The first thing is to identify inside the company a skilled engineer who wants to take responsibility as branch manager. We also build a lean structure and have an integration manager to help apply our model.
25/03/2025 Why start in HVAC if you don’t come from that business?
We believe this is an advantage because we don’t have the limits of people working in this industry for the last 30 years. So we want to be disruptive.
Competition
04/10/2023 Who are your main competitors in Italy and France?
In Italy, we have no real competitors. In France, we specialize in this service. Competitors like Ciblex Express, LM2S, TCS - Sterne Group offer night in-boot service but as part of larger courier businesses. We focus on technician productivity, not just deliveries. Customers who understand this choose us.
Growth
04/10/2023 Which other verticals or geographies interest you?
Germany is interesting, but more mature. Currently, we focus on France and developing our industrial plan in Italy, where there’s still significant growth potential.
08/01/2025 What are the plans for the HVAC project, acquisitions, and Italian market consolidation?
We started 2025 with a new acquisition in a territory where we are already established. The HVAC sector is very promising, and we plan to grow both through acquisitions and organic growth. We aim to attract independent technicians by offering more stability and less management burden. Our goal is to lead industrial consolidation in this sector in Italy, and by 2025, this business unit may become our top revenue contributor.
08/01/2025 How do you approach integration and synergies with acquired HVAC companies?
We focus on an industrial project, not just buying companies. We centralize non-core activities like warehouses, deliveries, and back-office tasks to improve efficiency, while keeping operational and commercial responsibilities local. We plan to share technicians seasonally to optimize utilization and introduce best practices across companies. Managers retain responsibility for their centers, and we avoid ultra-centralization, aiming instead to facilitate growth and efficiency.
08/01/2025 How do you keep or replace sellers and local managers after acquisitions?
We usually agree with sellers to stay for one or two years to ensure continuity and organize a transition. When possible, we promote internal candidates who already know the business, providing training and support. If no suitable internal candidate exists, we look externally for experienced managers. Sometimes, we intervene directly to fix issues during the transition. This approach helps us manage delicate leadership changes smoothly.
Financials
04/10/2023 Why did Lindbergh choose an IPO over private financing?
We chose the IPO to raise money mainly for the French market, where the company was losing about 200k/month. We raised around 4 million to cover losses and relaunch. The IPO also helps our standing with customers and lets us keep full control and independence.
Outlook and Guidance
04/10/2023 How will you increase margins in France? Can you reach Italian margin levels?
Margins will increase by adding waste management services, as in Italy. New customers and volumes will improve efficiency and profitability. Matching Italian margins is optimistic but a goal for the next 2-3 years.
08/05/2024 What is Lindbergh’s long-term vision for the next 20 years?
We want Lindbergh to exist and thrive for 20, 30, or even 50 years. The goal is to build solid roots so the company isn’t dependent on just the founders. We focus on creating and seizing opportunities, learning from successes and mistakes. The vision is to keep adapting and growing sustainably, aiming for satisfaction rather than just success.
08/05/2024 What are the biggest obstacles that could stop Lindbergh from lasting long-term?
The biggest obstacles are often in our own minds. Outside obstacles and uncertainties come with challenges but also opportunities. The key is to overcome difficulties and come out stronger. We don’t waste energy on things we can’t control, like wars, but focus on seizing opportunities even in tough times.
08/01/2025 What is the current vision for Lindbergh’s future?
Our core remains network management in Italy, focusing on historical clients and investing in information systems. After a stagnation period, we expect growth in 2025, including smaller customers. We have two key growth units: HVAC, through our control of SMIT, and circular economy/waste management, boosted by a major contract with LVMH. These units are growing strongly and will continue to do so. The core business remains our stable cash cow, growing steadily but without aggressive M&A targets currently.
25/03/2025 Can investors expect you to focus only on HVAC or add other platforms?
No, I think that considering the scalability of HVAC, we truly believe that this represents our future, so we want to push a lot in this sense so to continue with our strategy.
Personal Questions
04/10/2023 What drives you, Michele? Where do you see Lindbergh in 10 years?
When we founded Lindbergh in 2006, we wanted it to outlast us. We work daily to build a better place for everyone involved. The greatest satisfaction is the opportunities Lindbergh offers to our people. Our management has grown internally, which we’re proud of. In 10 years, I see a stronger, more attractive Lindbergh with the same founding values and no limits to healthy, sustainable growth.
08/05/2024 Who is Michele and what does Lindbergh do?
I studied economics at the University of Parma, graduated in 1999, and co-founded Lindbergh in 2006 with Marco. We started as consultants in logistics optimization, working with Vodafone Italy. In 2008, we began offering logistics services for industrial waste management, which was unique in Italy at the time. Over the years, we expanded into night deliveries and other services to support technicians, such as washing work clothes and tool calibration. Today, Lindbergh manages about 2,000-2,500 technicians across Italy, offering a unique, integrated logistics and technical support service nationwide.
08/05/2024 Do you relate to Nassim Taleb’s concept of anti-fragility?
Yes, I read Taleb’s book about a year or so ago and found it very inspiring. I see a lot of our company’s history reflected in the idea of becoming stronger through challenges.
08/05/2024 What kind of books do you like and recommend?
I’m not a bookworm but I enjoy reading biographies and real stories, especially about great people who left a mark. One favorite is Shoe Dog by Phil Knight, which I’ve read multiple times for its inspiring story of tenacity. I’m also a fan of Warren Buffett and have read extensively about him, as well as other influential figures like the founder of Patagonia.
08/05/2024 What are your first thoughts on these quick topics?
Next 10 years for Lindbergh? Opportunities, capital allocation, and company growth.
Relationship with investors? Very important; we aim to improve it continuously.
Time management? It means quality of life. I don’t work weekends or nights and value family and rest to stay balanced and innovative.
08/01/2025 Which car does Michele Corradi, CEO of Lindbergh, drive?
I drive a full-electric BMW 4 Series. I’ve had it for about a year and a half, and I feel very good with the full electric experience.
08/01/2025 What keeps you awake at night regarding Lindbergh?
Generally, I sleep well, but what worries me most is when I don’t have control or clarity over a situation. For example, when we entered France and the company was losing money without a clear understanding or control, it caused sleepless nights. I need to have a good grasp of the business to avoid risks, though I’m not obsessed with every detail, just enough to know what’s working and what’s not, so I can act accordingly.
Other Questions
04/10/2023 What’s the biggest misconception investors have about Lindbergh?
Many investors don’t fully understand our business model. It’s hard to explain quickly or in a short video. Some investors may be too lazy to dig deeper and focus only on the company’s market. That’s why I say we are unique, to spark more interest in Lindbergh.
08/05/2024 What KPI would you focus on if you were an investor in Lindbergh?
I would focus on cash generation. A healthy company produces cash and reinvests it wisely to create more value. Cash flow and capital allocation are key to sustainable growth and prosperity.
Sources
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