The company experienced significant achievements last year, highlighted by a multitude of territory acquisitions from leading private equity firms, and foreshadowing more growth in 2024 across its brands.
WACO, Texas — Neighborly®, the world’s largest home services company, announced today during this year’s annual International Franchise Association (“IFA”) convention that it officially surpassed $4 billion in systemwide sales and 5,500 franchises globally in 2023, a milestone year during which the company’s continued success garnered an unparalleled wave of private equity investments across the global franchisor’s flagship brands.
“The substantial private equity investments we’ve attracted across our flagship brands is a major achievement that reinforces the market’s confidence in our strategic vision and highlights Neighborly and our brands as a valuable investment,” said Jon Shell, interim Chief Executive Officer of Neighborly.
The record-breaking year brought notable investments from multiple private equity sponsors:
- In May of 2023, Eagle Merchant Partners announced its investment in Impact Home Services, an independent owner and operator of three franchises within Neighborly, serving Metro Atlanta and broader Georgia. Impact operates franchises for leading brands Mr. Rooter® Plumbing, Mr. Electric® and Precision Garage Door Service™.
- August of 2023 saw the transformative sale of Trades Holding Company, LLC, a leading Ohio-based franchise of Mr. Rooter Plumbing and Mr. Electric, to CPC, a private holding company.
- October of 2023 brought a groundbreaking partnership between Franchise Equity Partners (FEP) and the management of Reliable Residential HoldCo, the largest franchise owner-operator within Neighborly.
- In November of 2023, Sydnic, LLC, a leading franchise owner of Precision Garage Door Service™, announced its acquisition by SBJ Capital, a private investment firm based in the San Francisco Bay Area, showcasing the strength and appeal of the Neighborly brands.
- Most recently, Highland Arms Enterprises took on a strategic growth investment from Main Post Partners, a leading private equity investment firm. Together, they plan to invest further into additional Precision Garage Door Service franchise locations and additional Neighborly brands.
“These transactions combined represent investments of more than $400 million by leading private equity sponsors are a testament to the growth potential in the residential services market, and the strength of the Neighborly brands and the entire Neighborly system,” added Shell. “Each one of them is looking to further penetrate existing markets, invest in new markets, and add additional Neighborly service brands across our diverse portfolio of 19 service verticals.”
Among the many factors that positioned Neighborly as so attractive to investors, the company accomplished another year of strong same-store sales growth and exceeded its franchise development targets selling a record-breaking 468 franchises globally in 2023. As Neighborly looks ahead, the existing strategy remains the roadmap, with a commitment to expanding the footprints of its service brands and driving awareness to strengthen its presence in key markets.
Other 2023 noteworthy developments include:
- Launched version 2.0 of the Neighborly App aimed at providing customers with a frictionless experience beyond big search platforms by making it easier to find and schedule services specific to their needs, creating more cross-branding opportunities, and driving more leads.
- Strengthened ties with the Veteran community by engaging existing Veteran Neighborly owners at a local level and establishing partnerships with organizations like the Service Academy Career Conference (SACC) and ZeroMils.
- Received recognition for Neighborly and its franchise brands in top industry rankings, highlighted by 18 Neighborly brands included in the Entrepreneur Franchise 500 rankings, six brands ranked #1 in their category, and 14 brands recognized for offering incentives and other programs to help veterans become franchisees. Click here to view additional awards highlights.
- Accelerated adoption of new recruiting and retention platforms, partnerships, and tools for franchise owners.
- A brand refresh for Window Genie® capturing the robust service offering, including residential and commercial window cleaning, window tinting, pressure washing, gutter cleaning, and holiday lighting.
“Last year was also an extremely difficult and emotional time for so many of us with the sudden passing of our CEO, Mike Bidwell, in September,” added Shell. “Mike would have been extremely proud to see how this organization rallied together to achieve such great things. We miss Mike more than words can express and we will continue to carry his vision for Neighborly forward.”
For more information about Neighborly’s service brands, visit www.neighborlybrands.com.
About Neighborly®
Neighborly® is the world’s largest home services company with more than 30 brands and 5,500 franchises in six countries that have collectively served 14 million+ customers by repairing, maintaining, and enhancing their homes and businesses. Through Neighborly.com and the Neighborly mobile app, we connect consumers to local service providers that meet rigorous franchisor standards across 19 service categories. More information about Neighborly, and its franchise concepts, is available at Neighborlybrands.com. To learn about franchising opportunities with Neighborly, click here.
SOURCE Neighborly