Insight

Residential services market M&A update

Residential services continue to remain an attractive sector for financial sponsors

Stephen Guy

Stephen Guy

Managing Director, KPMG Corporate Finance LLC

+1 410-949-8909

Residential Services Remain an Attractive Sector for Financial Sponsors

  • Favorable, long-term demographic trends support growth and drive demand
    • Growing home ownership and increased discretionary income
    • Aging population as more baby-boomers reach retirement age
  • Industry revenue and demand remain strong through the global COVID-19 situation
    • Increased demand for essential services such as pest control and landscaping
    • Consumers are spending more time at home and are more conscious of services available for their homes
  • Recurring revenue model through contractual or subscription-based service offerings
  • Younger homeowners are more willing to use 3rd party service providers
  • Fragmented sub and micro-sectors are favorable for increased consolidation
  • Attractive and growing market with significant white space

The residential services industry Is a $506B market poised for significant growth1


 

Footnotes

  1. HomeAdvisor home service market report 2020


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