Private equity firms pay two to three times more for home service businesses with large customer lists they can monetize. Most home service owners don't email or text their customers. Buyers extract value by running nurture campaigns to cross-sell and upsell.
Two to three times more.
Private equity companies will pay two to three times more for home service businesses that have this. Most home service businesses have a gold mine sitting inside of their business in their CRM they have a prospect and customer list of thousand people, 2,000 people, 10,000 people and they're not emailing them, texting them, staying top of mind. What private equity companies will do is buy these companies and start an email nurture sequence, a text campaign and a call campaign to cross sell them services and upsell them and bring them back into the funnel. Most home service business owners are saying oh well they just call us when they need us. They know about us. They're not going to call you when they need you. You need to stay top of mind because you can't get lifetime without a lifetime relationship. And this is why those private equity companies will pay more because they know that people are not maximizing the gold mine that's sitting inside of their CRM.
