Home Services Holdco Opportunity (South Africa)

October 15, 2024
by a professional in Durban, South Africa
My wife and I have committed to building a Home Services HoldCo in Durban, South Africa, and we're looking for one or two values-aligned investors who resonate with our vision and strategy.
After months of searching, we have found a business that really excites us as the first and foundational acquisition of the HoldCo...
It's a local kitchen and bedroom cabinet design, manufacture and installation company, which has been run by a husband and wife couple for the past 18 years (and who are now looking to retire). The business has an exceptional reputation within it's local community, with 70% of orders coming from past clients, and 50% of inquiries converting to a sale. The owner-operators are fastidious, and EVERYTHING (from material costs to employee performance and incentives) is measured and managed with a keen eye and strong hand,
But there is a LOT of room for improvement!
The website is ugly and their social media has been neglected for years. They only advertise in print media within a 7 mile radius. Their pricing is 20% - 30% below that of local competitors with inferior products and service, and their (true) net profit is in the single digits.
From a HoldCo perspective, we have a clear vision and strategy for building a leading home services brand that offers exceptional product quality and service (a major pain in the local market), by becoming a customer experience company that just happens to sell home services (just like Zappos was a customer experience company that happened to sell shoes), with future acquisitions including (but not limited to) Interior Design; Remodelling & Renovations; Doors, Shutters & Windows; Flooring; and Landscaping.
We're looking for a total upfront investment of US$55,000 for a 30% non-executive share in the HoldCo.
So why us?
My wife is a qualified architectural technician who has been redesigning and renovating our own homes for the past 20+ years - everything from personally designing and building cabinets and cupboards to redesigning and remodelling EVERY room in the house (including designing both metal and wooden furniture and fixtures that she's outsourced for fabrication); as well as outdoor landscaping and building. Through all of this, she's often banged her head (and burned her fingers) on the generally low standards of quality and apathy of service in our city - which might have something to do with the vast volume of American and Canadian home renovation shows she's watched, and upon which she has based her expectations.
As for me, I'm waaay less practical. For the past 20 years, I've been a business consultant in various forms and flavors, including business model innovation, leadership development, digital marketing and (most recently) revenue and profit growth. You can check out my newsletter on LinkedIn, to get a handle on my signature system for doubling revenue and tripling net profit margin within 12 to 18 months - which we (obviously) intend to employ in our HoldCo.
I'd be grateful if you could hammer me with your thoughts and perspectives; your recommendations and referrals; and your cautions and encouragements... thanks a bazillion!!
in Durban, South Africa