ServiceMaster sold--

[WISE]

Investment firm buys em out

http://www.bloomberg.com/apps/news?pid= ... refer=home


WISE

 

[cu]

yas goes big time.....you know it,s him behind it

 

[The Preacher]

so they had what investors look for "ASSETS"!!!

 

[steve g]

wow, I am no expert but it sounds to me like they paid way too much money for a company that brings in relatively little cash, I think its a bad move, too much money they paid out and it also looks like they are overextending themselves to make the buyout, this could be a bad move for all parties, I hope it is, I also think the day is going to come that SM will loose its power posisition on the water damage work, which could lead to major problems if they have put their eggs all in that basket

 

[Kevin B]

Servicemaster is more profitable than you think. And....they have like a bazillion different spin-offs.

 

[Farenheit251]

I doubt that water damage accounts for 5% of SM's revenue. Terminix and Chemlawn/Trugreen dwarf the cleaning side. Then there is American Home Shield,Merry Maids,Rescue Rooter a home inspection service and some others.
One thing that caught my attention when I was a franchisee was when we had a group meeting and it looked as though the humble janitorial guys were making more money than the restoration guys. Sure I had some months where I did tremendous but also had months where I went in the hole. Those guys had a steady monthly gross that they increased by maybe a measely 10% every 6 months. Alot more of them were doing over a $100,000 a month and they did it every month. Restoration was more of a rich this month then poor for 2 months business. Brian E