Mergers & Acquisitions in the Restoration Industry
As I’m writing this, we are nine weeks into 2021, and I have posted a news item regarding an industry acquisition or merger almost every single week. Some of the deals are with industry suppliers and vendors, but largely it’s restoration companies. In most cases, one company purchases another, but in others, a private equity firm has come in and made an investment. I also happen to know these press releases cover just a small fraction of the mergers and acquisitions happening in today’s restoration industry. I hear about many others through the grapevine that are never shared on a widespread platform. This is certainly a big movement in our industry. Earlier today, I was on the phone with a trusted industry friend, and we were discussing concerns about consolidation in their company’s marketplace. What happens when a decent-sized, well-known, and well-respected restoration company finds all their competition bought up and under one umbrella? Will good marketing and reputation be good enough? I suppose some of that answer lies within the amount of program work companies rely on and how they bring in other business in their market. Of course, that's oversimplifying it though, as there are MANY factors to consider. I am certainly no expert on any of this. However, check out Phil Rosebrook’s annual year in review in this issue, and be on the lookout for a whole lot more content covering this mergers and acquisitions topic in R&R eMagazines and on our website. Coming soon: an Ask the Expert interview with one of the top brokers in the restoration industry. Stay smart. Keep innovating.
