Home Services Sector Overview
Home services participants include providers of various residential services and solutions, as well as property and facility maintenance services delivered directly or through a network of franchisees. Key players in each sub-sector are categorized as to whether they operate through a franchise model
| Sub-sector | Public Revenue / EBITDA Multiple1 | Description | Key Select Industry Leadership | |
|---|---|---|---|---|
| Franchise Home Services | 4.30x / 25.3x | Includes companies offering home based services directly or through their franchise network. These services entail pest and termite control, remediation, HVAC, exterior and interior home maintenance, landscaping, commercial property management, and in-home healthcare |
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| Non-Franchise Home Services | 2.62x / 14.2x | Comprised of companies offering interior and exterior building products, insulation, home improvement and repair, security solutions, installations, and related services |
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Sector Perspectives
Increased consumer spending on home remodeling and home maintenance services has resulted in a 17% increase in market expansion
Home Services Remain an Attractive Sector for Financial Sponsors
- Recurring revenue model through contractual or subscription based service offerings such as HVAC, interior and exterior cleaning, and landscaping
- Favorable, long term demographic trends support growth and drive demand
- Growing home ownership, low interest rate environment and increased discretionary income
- Aging population as more baby boomers reach retirement age
- Industry revenue and demand have remained strong throughout the Covid-19 environment
- 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
- Younger homeowners are more willing to use thirdparty service providers
- Fragmented sub and micro sectors are favorable for increased consolidation
The Home Services Industry is a $595B Market Poised for Significant Growth
- Improvement Services continues to garner the largest share (63%) of the Home Services Industry
