a blue logo with white text

Strategic Shift for Neighborly as Private Equity Money Flows to Franchisee Level

For Neighborly, 2023 will be remembered as a year of both historic milestones and tragedy. The largest home services franchise platform surpassed $4 billion in systemwide sales and 5,500 franchises globally last year.

Neighborly, which owns more than 30 brands and sold a company record 468 franchises in 2023, also lost its longtime leader. Mike Bidwell, who served as president and CEO of the umbrella company since 2014 and led the brand through its rebrand from Dwyer Group to Neighborly in 2017 and the acquisition by KKR & Company in 2021, died in September at the age of 65 after a fall at his home.

Interim CEO Jon Shell said Bidwell would've been proud to see how the organization rallied and worked with franchisees to secure five significant deals with private equity firms. Investments by Eagle Merchant Partners, Franchise Equity Partners, CPC, SBJ Capital and Main Post Partners into multi-unit operators of Mr. Rooter, Mr. Electric and Precision Garage Door Service totaled more than $400 million, the company said.

The private equity money that poured into the system represented a new strategy for Neighborly. Up until 2022, the Waco, Texas-based company mostly steered away from outside investors entering at the franchisee level.

Read the full article here.