William Blair white paper: Residential service market poised for growth

IMAGE: WILLIAM BLAIR & CO.

Chicago, Ill.-based William Blair analyst Tim Mulrooney, who collaborates monthly with Pest Management Professional financial columnist Dan Gordon, CPA, on a monthly Pest Control Index, has published a white paper on the residential services sector. Among Mulrooney and his team’s conclusions is “the sector will experience strong growth over the next decade due to accelerating end-market dynamics and evolving consumer behavior.”

This report, which was compiled to assist investors in discerning what to look for in coming years as sound investments, focuses on the residential services vertical, which includes “many large, highly fragmented markets such as pest control; landscaping; lawn care; heating, ventilation, and air conditioning (HVAC); electrical and plumbing; moving and storage; pool services; roofing services; renovation; home restoration; and other interior and exterior services,” per Mulrooney’s news release.

“Although there are very few publicly traded companies servicing these end-markets today, we expect that this dynamic will change over the next several years,” he said in the news release. “Private equity and other financial sponsors, drawn in by favorable investment characteristics, continue to consolidate these large, highly fragmented markets. We expect institutional investors to take a similar level of interest as many of the larger platforms consider a public exit.

“Investment in the residential services sector is being fueled by attractive secular tailwinds, accelerating end-market dynamics, and evolving consumer behavior,” Mulrooney continued. “Against this backdrop, the residential services industry will experience strong growth over the next decade, in our opinion. Moreover, we believe that investors in both the public and private equity markets will achieve superior long-term returns by identifying and investing in strong platforms in these industries, many of which are redefining the marketing strategies, customer experience, and levels of technician engagement, and are capturing outsized market share in the process.”

Download the full report here.

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from Pest Management Professional https://www.mypmp.net/2023/06/30/william-blair-white-paper-residential-service-market-poised-for-growth/
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