Deal Marks Inaugural Move by Reliable Residential HoldCo
Boxwood Partners has advised Rapp Operations LLC, the largest franchisee of Precision Garage Door Service (a Neighborly brand) as it formed a partnership with Franchise Equity Partners. Franchise Equity Partners makes long-term investments in quality franchisees and franchisors.
Rapp Operations marks the inaugural investment for Reliable Residential HoldCo, a holding company that Franchise Equity Partners created to acquire more Precision Garage Door Service operations and other Neighborly brands. In announcing the partnership in late October, Franchise Equity Partners founding partner Mike Esposito said he sees vast growth potential in the home services industry.
Precision Garage Door Service has more than 100 locations across the United States. After acquiring the brand in 2020, Neighborly’s resources helped it grow. Boxwood sees the brand as having an advantage over its competitors because of superior lead generation, technology, inventory, sales processes, speed to service customers, and the ability to attract talent.
Boxwood and Its Activities
Boxwood Partners, a middle-market investment bank that specializes in entrepreneur- and family-owned businesses, acted as the sell-side adviser to Rapp Operations as the deal was ironed out. The Rapp transaction is Boxwood’s third partnership deal for franchisees and its second involving the Neighborly family of franchises. Boxwood Managing Director Brian Alas noted in a news release that Rapp Operations is “one of the most established operators under the Neighborly umbrella” and praised “the inherent resilience of garage door services to economic downturns.”
“We are extremely appreciative of all the hard work and guidance provided by the Boxwood team throughout the entire process,” Rapp Operations President Carlos Morales stated in the news release from Boxwood. “Boxwood’s experience and knowledge of both residential services and franchising helped us identify the ideal partner for our business, including one that was aligned with our vision and values. Franchise Equity Partner’s perpetual investment horizon was very attractive to our team, as it allows for long-term decision making to be the top priority.”
Looking Ahead
Boxwood Vice President Madison Day said, “Rapp represents an opportunity to invest not only in a recession-resilient end market, but also stands to benefit from the broader exposure to Neighborly’s portfolio of service brands.” Day, Alas and analyst Justin Jasper led the transaction. The terms were not disclosed. Based in Jupiter, Fla., Boxwood Partners also has offices in Richmond, Va.
Esposito said his firm is excited to be involved with growing the presence of Precision Garage Door Service and other Neighborly brands in strong markets around the United States. Rapp is the eighth investment for Esposito’s firm. New York City-based Franchise Equity Partners deploys its $1 billion portfolio to enable growth, ownership simplification, succession and estate planning, among other strategic business opportunities.