The low-tech, high-touch industry of home maintenance services is having a moment.
Repairing balky electrical outlets and replacing cracking concrete is exactly what both career-shifters and investors are looking for: problems homeowners must resolve, driving consistent sales and revenue. But there’s a downside for consumers: because so many firms are under new ownership, homeowners now must take extra steps to ensure they are dealing with a company that actually is a hometown business.
Why are white-collar professionals moving to home services?
Though he was a rising star at a Big Four accounting firm, Nick Riley realized the trends were against him. His knowledge-industry job was vulnerable to obsolescence at the cold hands of artificial intelligence. And, he decided he wasn’t wired to be a corporate lifer.
So, he applied his consulting experience to his own career, assessing the long-term prospects of shifting into home services — low on glamour but high on reliable cash flow. Through a local business networking group, he put the word out that he was looking to buy a home services business. A longtime roofing company owner was looking to sell. At the end of 2025, Riley bought Driftwood Builders Roofing.
“A huge confidence boost was that the seller was willing to offer seller financing. That told me that he was willing to invest in the company and in me,” Riley told Straight Arrow News.
Shifting into home services isn’t as much of a stretch for degreed professionals as one might think, said Riley, who as a teenager worked alongside his father in the family landscaping business, absorbing the basics of building a loyal customer base.
“I picked up customer service, the importance of high-quality work and how to manage a team,” he said.
Is a blue-collar career path the best option for Gen Z?
Riley has plenty of company. Americans have a newfound affection for work that must be done in-person and on-site.
The annual “Blue Collar Report” by Jobber, a digital administrative platform for contractors, found in late 2025 that 77% of Gen Z believe it’s key to have job skills that can’t be automated away. Job growth in the trades is projected to advance at twice the overall 4% increase in employment. And, of keen interest to potential business owners and investors, the report detailed the proportion of contractor businesses that pull in at least $1 million annually, from 21% of heating and cooling firms to 14.7% of landscaping firms.
At the other end of the acquisition spectrum, big equity firms are equally enthusiastic.
Investors and aspiring firm owners all see the same upside to buying into the home services category: a boost in profits from replacing outdated administrative and customer support systems, and amplified sales through modernized marketing, said Matthew Mooney. He is a former acquisition manager for home services for an investment firm and is now a senior partner with Profitability Partners, which provides management support to home services firms.
Infusing homegrown contractors with the latest operational and sales structures replaces intuition with data-based decision-making, Mooney said.
“The quality of the overall service is likely to go up with extra training and resources. The technician will show up on time, present well, and not make a mess in your house. But the price will go up, too,” he said.
Nearly guaranteed cash flow delivers a reliable return, especially for investors who want to diversify their portfolios beyond Wall Street. For instance, Founders Advisors, a private equity firm, acquired 13 home services companies in the first half of 2025. Its analysis found that the pest control, heating and cooling, landscaping and roofing categories brought rising financial returns, even in an erratic consumer economy.
Riverside Company, an international investment firm, expanded its portfolio of home services franchises and operators last year with additions of home-cleaning services.
Julian Scadden hears about private equity offers all day long, thanks to his position as CEO of Nexstar Network, a networking and professional development group for owners of independent contracting firms
The only remaining mystery is why it took private investors so long to discover home services, he told SAN.
“These are great businesses that, when well run, have good returns,” said Scadden, himself a plumber by trade and former owner of a plumbing firm. Typically, a well-managed contracting firm might attract a buyout offer of seven or eight times its annual earnings before interest, taxes, depreciation and amortization — also known as EBITDA.
Main Street or Wall Street?
“Private equity is offering huge multiples — up to 17 and 18 times EBITDA,” he said. “That’s unheard of.”
Demographics can prompt aging firm owners to sell. Baby boomer owners often count on selling to finance their retirements. Inquiries from private equity firms can catalyze owners to review their options, which include selling to a single independent owner or to a group of longtime employees.
Either way, it’s common for new owners to retain the established local brand, Scadden said.
“In the 1990’s, there was a consolidation trend of rolling up into national brands. That didn’t go well,” he said. “Now, they know: Keep a local brand. That keeps customers attached.”
Retaining the original company image makes it harder, though, for consumers to ensure they are engaging a truly local contractor.
Looking up the owner as registered with the state Secretary of State is usually a reliable mode of confirming true ownership. Looking up contractor licenses with the relevant state regulator isn’t as helpful, as licenses usually are held by individual tradespeople, not business owners.
Financial advisers say the easiest way to confirm ownership is to ask the firm’s manager. Service technicians and customer service reps aren’t likely to be clued in. Regardless of their vetting strategy, homeowners can take a cue from professional investors, said Riley, by developing long-term relationships with locally owned contractors who have as much of a stake in the community as their customers do in their homes.