PE Roll-Up Strategy Aims to Improve Margins and Efficiency

Private-equity investors are rolling up home services businesses to create larger players, improve margins through managerial know-how, back-office efficiency, and increased marketing and recruiting budgets. Critics note this can mean higher prices and less competition.

“For private-equity investors, the strategy is one that has been put to use in industries as varied as carwashes and nursing homes: Roll up businesses to create larger players and improve their margins by adding managerial know-how, back-office efficiency and beefed-up marketing and recruiting budgets.”

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