How Private Equity Benefits Brands

In today's competitive business landscape, multi-unit franchise brands are constantly seeking ways to expand and improve their services all while meeting the ever-changing needs of their customers. One new way franchise owners are doing so is by partnering with private equity firms. These partnerships can provide more than just financial investments; they bring growth opportunities, strategic expertise, industry connections, and operational support to help franchise owners succeed.

By teaming up with private equity companies, multi-unit franchise owners can have access to resources they never had before, helping them to accelerate growth and operational efficiencies. My business, Punctual Pros, was recently acquired by Broad Sky Partners, and we are experiencing the benefits of a private equity partnership firsthand.

When I started in the trades industry 24 years ago, I never imagined Punctual Pros would become the second-largest acquisition and first tri-brand deal under Authority Brands, our portfolio company. As part of Authority Brands, Punctual Pros was put in a better position to become a more successful business model.

From day one, they provided us with the necessary resources, guidance, networks and support needed to successfully integrate our three sister brands—Benjamin Franklin Plumbing, One Hour Heating & Air Conditioning, and Mister Sparky Electric—into one cohesive unit. This allowed us to capitalize on our services, offering a one-stop shop for our customers in more than 240 zip codes across Central Pennsylvania. As a result of this, I was able to establish a synergy of services that made Punctual Pros stand out in the market, and what I believe caught the attention of Broad Sky Partners. Authority Brands' support was instrumental in positioning us as an ideal candidate for private equity.

Our partnership with Broad Sky Partners came at the perfect time. I recognized the limitations of scaling the business alone and saw the benefits of partnering with a more established private equity firm. This partnership has optimized our cross-brand operations and strengthened our marketing efforts. With access to additional capital from Broad Sky Partners, on top of what Authority Brands has already equipped us with, we've increased funds allocated to supporting our three trades brands. This additional funding allows us to upgrade technology and equipment, prioritize local marketing, and revamp hiring and training to attract top talent. For multi-unit franchise brands, it means more resources to increase market presence and service capabilities, positioning them to enter new markets and establish a stronger brand presence.

Beyond financial support, private equity firms can offer a wealth of knowledge on properly and safely scaling businesses. These companies understand how to mitigate risks and have the necessary resources for smooth growth. Their guidance and oversight can help franchises optimize their operations and identify new opportunities, especially for brands that may lack the experience or ability to implement large-scale changes independently.

The backing of a private equity firm can also help franchise brands streamline operations. This can be through better management practices, improved supply chain logistics, and economies of scale. Through this partnership, I've had more time to focus on strategic growth and mergers and acquisitions than ever before. While I'm still very involved in Punctual Pros, I've seen how Broad Sky Partners' efforts in strengthening shared resources, collaborative marketing efforts, and comprehensive support systems have streamlined our operations across the board.

Although private equity partnerships are relatively new, I believe my journey can be an inspiration for other franchise owners. These partnerships can offer new pathways for growth for both established and emerging franchise brands alike. Since teaming up with Broad Sky Partners, I've been able to safeguard my business and increase our ability to offer comprehensive services to our customers.

Access to capital, knowledge, resources, and networking is crucial for multi-unit franchise owners, like me, aiming to scale operations and achieve long-term success. Looking ahead, I'm confident the Broad Sky Partners acquisition will drive continued growth and innovation for Punctual Pros. I'm excited about the future and the new heights we'll reach with their support.

Matt Buckwalter is owner of Punctual Pros, one of Authority Brands' largest franchisees, which includes One Hour Heating & Air Conditioning, Benjamin Franklin Plumbing, and Mister Sparky Electric of Southeast Pennsylvania.