'The Canyons' actress broke off her romance with the Texan businessman due to conflicting work schedules only a week after reports the couple had been dating surfaced.
A source revealed to UsMagazine.com: "Their work schedules and the distance just make dating impossible, He really likes and respects her. He thinks she is back on top, emotionally and physically."
Matt had reportedly been a big help in Lindsay's recovery after she checked out of the Cliffside Rehabilitation Centre in Malibu in July, where she had been treated for alcohol and substance abuse.
The source explained: "He's older, a successful businessman, and he has been a great friend to her, he's also a Christian and won't drink around her. He's trying to keep her sober and on the straight and narrow. He's really good for her."
Lindsay become close to Matt after they met several years ago through mutual friends and its thought the pair will always maintain a close friendship, despite their romance not working out.
The insider continued: "He respects her sobriety and wishes her the absolute best. They will remain good friends."
Lindsay's previous lovers include Wilmer Valderrama, The Wanted's Max George and DJ Samantha Ronson.