The Home Service Expert Podcast Driving Growth Through Private Equity Partnerships to Scale Home Service Brands
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Nov 1, 2024 Rob Parker, a Managing Director at TD Cowen specializing in sell-side M&A, and Eric Van Dam, head of Residential & Commercial Services, share their insights on merging and acquiring home service brands. They discuss the evolving role of private equity and the essential financial metrics for valuation like EBITDA. The importance of choosing the right CRM and ERP systems for growth is highlighted, along with strategies for successfully integrating acquisitions. They also delve into preparing for public offerings and the significance of solid legal representation in M&A.
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PE Interest in Home Services
- The home service sector is appealing to private equity due to large, fragmented markets, non-discretionary demand, and organic/inorganic growth.
- This interest is expected to endure, driven by consistent demand and opportunities.
Finding the Right PE Partner
- Look beyond just the monetary offer when considering selling your business to private equity.
- Prioritize finding the right partner who shares your vision and values.
Understanding EBITDA
- Understand your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which is crucial for business valuation.
- Consider add-backs for non-recurring expenses to determine adjusted EBITDA.