• Jacob Aldridge

Residential Home Services

Trade and Home Services Business: From Unprofitable to a $15 million valuation



Team Lead

Scope Of Work

​Jacob Aldridge

Strategic Roadmap

Marketing

Sales

Product Extension

Senior Management

In a highly competitive market, this 2nd Generation business struggled prior to our engagement.

Residential Home Services began as a traditional trade business, and operated as a successful small business for many years before being sold to the Second Generation who had a larger vision.


Unfortunately, the new family member’s investment plans were misplaced, and the very quickly the business required to take on debt in order to survive. We were engaged to rapidly transform the business.


Our approach first assessed their Capacity Planning, which revealed a significant imbalance across Costs, Strategy, and Operations. Our revised plan streamlined their technology solution, systemized their sales and marketing, and improved recruitment – quickly growing revenue by 400% and leading to the most recent valuation at over $15 million.


CHALLENGE

OUTCOME

Second-generation family business struggling to achieve their rapid growth plans, due to a lack of capital, cash flow, and strategic capability.

A clear strategic roadmap, with commercial milestones, was

prepared and delivered.

Profit formulas and key financial indicators were implemented

and communicated to the senior team

The resource mix of field and administration was rebalanced,

aided by a technology ‘field services’ project.

Extra margin was reinvested in innovative marketing campaigns, targeting retail customers, then commercial contracts, and lastly back to the industry to accelerate recruitment.

Strategic hires at senior management replaced the owners across all day-to-day operational responsibilities.


 

KEY POINT #1

Most private enterprises understand Revenue, Profit, and Cash – but lack an understanding of their Capacity, which dictates how rapidly those other metrics can be improved.



KEY POINT #2

Because Costs and Revenue are most obvious in a business, and most readily addressed, many new investors and business owners ignore the critical value of investing in Strategy for the future.



“Ultimately, Jacob and his team are the reason we are going as well as we are, and how we have such a big team; we would not be where we are if we had not brought on Jacob and implemented his advice."



RESULT

Part-way through implementing our recommendations, Residential Home Services was approached about a possible $4 million sale; the same acquirer approached again last month with a $15 million offer based on the speed of growth and future strategic plans.