Home Services Roll-Up
The Challenge
Our client presented us with a broad thesis—they had interest in the home services industry for a potential platform investment. Ideally they wanted to identify a backable CEO candidate to head the platform. Given their broad mandate, Apex Leaders advised the firm initially start with SME conversations in a myriad of home services subsectors. This way, the client could identify which sectors were most ripe for their roll-up strategy. They wanted to speak to senior leaders from name-brand platforms in the industry.
The Search
The research team focused on executives who spent time at national businesses with recurring services, those that were majority residential-focused (vs. commercial), and those with non-franchise models.
The Results
Apex Leaders presented multiple potential SMEs:
- Former COO | TruGreen, CEO | Church Services
- Former CEO | ServiceMaster
- Former CEO | Merry Maids Corporate
- Former VP | Maid Right Franchising, former VP | Operations at Service Brands Internationals
After discussions with advisors, the client pivoted their strategy to focus on external services (tree trimming, gutter care, window washing, etc.) and foundation services (foundation repair, basement flooding, etc.). To align with this new focus, they requested Apex Leaders identify former executives with national experience in these specific sectors and present them to investors as potential CEOs capable of leading the envisioned platform.
Apex Leaders presented multiple potential backable CEO candidates:
- Former CEO | B-Dry Waterproofing and Foundation Repair, COO | ServiceMaster Clean
- Former President and COO | Five Star Franchising & The Dwyer Group, President | AdvantaClean
- Former VP Operations | Window Genie
- Former VP | Interstate Restoration, CEO & President | Statewide Disaster Restoration Inc.
The client engaged with several candidates and selected one individual to head their future platform and worked with him to source and vet potential acquisitions. Several months later, the client had progressed in their strategy and had three proprietary businesses under LOI, including a residential water testing business. They saw water treatment as one of the potential revenue streams for their platform and wanted to understand how large of an opportunity this service would be on a national scale.
Apex Leaders presented multiple advisors:
- Current Board Member | Water Quality Association
- Current President | American Water Services Inc.
- Former VP of Acquisitions a & CFO | Aqua-Chem Inc.
- Current EVP BD | Canature WaterGroup, former President | Marmon Water Retail Group, SVP Engineering & Product Development | EcoWater Systems
Last Word
Upon speaking with several advisors, they concluded the TAM was still under-addressed at the national level and would be ripe for a roll-up. They proceeded to acquire this company. To date, they have closed on two of the three businesses and placed the Apex Leaders sourced individual as the CEO of the platform.