Private equity – or PE – firms know a good deal when they spot one. After all, they’re in the business of acquiring ownership stakes in high-performing industries and business sectors. Their holdings are often diverse in nature, featuring a balance of business opportunities in which they exchange readily available capital to help fund expansions, acquisitions, and any of a number of growth opportunities.
PE firms are known to be highly selective in nature – only betting on winning propositions whenever possible. And with thousands of franchise concepts on the market today, there’s certainly a wide variety of choices to review, analyze, and position for future growth. Some of Franchise FastLane’s top brands have already been acquired by PE groups in the past, but we have a few new announcements to share below.
Two Home Improvement Franchise FastLane Brand Partners Acquired by Empower Brands
Franchise FastLane is proud to share that two of our best-in-class home improvement brands have recently been snapped up by a private equity firm, positioning them for healthy and sustained growth in the years to come. As of April of this year, Koala Insulation and Wallaby Windows were acquired by Empower Brands – which itself was formed in 2022, during a merger of Lynx Franchising and Outdoor Living Brands. Empower CEO, Scott Zide, recently spoke of their decision. “It brings two young, emerging brands to our portfolio, which helps us diversify the portfolio we have. There are certain best practices, certain systems and processes and technology that these two brands have implemented, and had success with, that I know we can translate to our existing brands and vice versa.”
Healthcare-Related Franchise FastLane Brand Partner Acquired by LP First Capital and Genesis Park
Not to be outdone, Franchise FastLane brand, Fastest Labs, was also recently acquired by LP First Capital and Genesis Park. LP First Capital specializes in family-owned, founder-led businesses, providing capital, operational expertise, and strategic guidance. And Genesis Park is a Houston-based investment firm providing flexible debt and equity capital solutions for lower middle market businesses across various industries and business sectors. LP Capital’s managing director Thomas Ince spoke of the Fastest Labs acquisition, stating “Fastest Labs has shown tremendous potential and is a perfect fit for our business services platform. We’re excited to work closely with Dave Claflin and his team to expand the company's reach and enhance its offerings to better serve the needs of our customers."
Why PE Loves Working With Franchisors
Franchise brands and private equity groups make a good match, as they’ve carved out a mutually beneficial relationship with one another that can pay dividends for both. In a way, it helps them both to grow and meet their individual financial goals. Private equity firms often put up the capital necessary to strengthen systems, operating procedures, executive leadership, and the recruitment of new franchisees. In turn, they get a solid return on investment when the franchise brand performs, as their family of franchisees continues to grow. In a nutshell, the symbiotic relationship between PE groups and franchisors is all about financial performance and return on investment. In the process, brands that get acquired, such as Koala Insulation, Wallaby Windows, and Fastest Labs, are now positioned for even more success.