Are they STILL locally owned, or a private equity acquisition?
Crazy true story about a north Tacoma homeowner in her mid 80s. Her late husband generally dealt with the mechanics of home maintenance through the years, so when the lower level of her home started flooding she felt… like a fish out of water. She called a locally trusted company to assess. They diagnosed that it was the HVAC system and did a $1400 repair. The flooding was back two days later! It appeared to be coming from the shower drain in the basement. She called the same company out to see if they missed something. They said it was actually a sewer valve that needed replacing but they assured her they could take care of it for her. The bid was $8000 not including tax! Matt, who had been monitoring the situation by phone smelled a rat. He started driving over to the house while he was talking to her. He found a young tech digging a small hole, alone. No heavy equipment… just a guy with a shovel, for $8,000! Matt has seen enough spot repairs over two decades to know that this kind of repair should not cost that kind of money! He told the man to stop digging. He called one of our trusted sewer contractors, Conan’s, who diagnosed the issue in minutes and observed that the young man from the other company was digging in the wrong area!
Matt confronted the tech, confirming that the bill with tax would be $8,000… to dig a four foot hole in the yard with a garden shovel. The tech said “yeah”... Matt called the supervisor. After several VERY heated conversations the company agreed there would be no charge (for misdiagnosing and digging in wrong place!) Matt told them they also needed to send someone back to repair the unnecessary damage to the yard.
This company was either incompetent AND severely overcharging or they were taking advantage of this homeowner. Perhaps all three.
By the way, Conan’s total bill to fix the problem was a few hundred dollars.
I mentioned that the company was trusted locally. For many years they had a great reputation as a locally owned HVAC company. However, they sold to a private equity company - a trend that is sweeping the country.
Why is This Happening?
If you’ve had a recent experience where a once-trusted home service company suddenly showed up with very different vibes, you’re not alone.
There’s a larger shift happening behind the scenes in industries like HVAC, plumbing, and electrical—and most homeowners have no idea it’s going on.
The “Local Company” That Isn’t So Local Anymore
For decades, these businesses were typically owned by a single person or family. Reputation mattered. Word of mouth mattered. Fixing something instead of replacing it was often the default. But over the past several years, a new player has entered the scene: large investment groups quietly buying up successful local companies. They often keep the same name, branding, trucks, and even staff. From the outside, nothing looks different. But it can operate like a completely different business.
What Changes After a Buyout?
These companies often begin operating with a different set of priorities. Rather than doing what is best for the homeowner, they can attempt to do what is most profitable. Yuck!
- More recommendations to replace instead of repair
- Higher-priced bids than you might expect
- Bundling services or suggesting upgrades you didn’t ask about
- Expansion into plumbing and electrical to increase overall revenue per customer
Not every tech who shows up is evil, but there is a lot more evil out there that before.
Why This Is Happening
From a business standpoint, it actually makes a lot of sense.
These industries have a great deal of emergency based service (think furnace dying on the coldest weekend of the year, high ticket jobs, recurring service opportunities and the competition is thousands of small indie operators.
So the strategy has been to buy strong local companies, grow them, combine multiple services under one umbrella and often sell at a higher valuation later. This is happening all over the country.
What This Means for Homeowners
Get a second or third opinion, especially on big ticket items like a furnace.
Ask about repair
Ask lots of questions - don’t just sign a work order that seems high
Watch for high pressure sales tactics
Don’t assume the company you have used for years is the same.
