Owner’s Corner 3rd Quarter 2019

8/12/2019 (Permalink)

This time of year, the more than 1700 franchises from the United States, Canada, and even Puerto Rico assemble for SERVPRO’s annual convention. Joining together as one unit, we learned, networked, shared advice from experience, and listened to the stories of one another’s success in order to grow and promote SERVPRO’s strong reputation in the restoration business.

With this year being the 50th anniversary of the convention, the SERVPRO origin story was shared, detailing its creation in 1967 in Sacramento, California as well as its founders, Ted and Doris Isaacson. Learning about how the franchise was built from its roots to the $2.4 billion franchise system that it is today, was inspirational. It all started with the talented Isaacson couple, who handed the business to their children and allowed it to flourish.

Initially a painting business, Ted and Doris eventually shifted SERVPRO’s focus and decided to franchise it as a carpet and drapery cleaning company from there. Though the shifting and franchising process required plenty of work and hardship, it has ultimately paid off, as SERVPRO has expanded its impact internationally and now offers various restoration services beyond carpets and drapery cleaning, including general cleanup, reconstruction, and asbestos management services.

We can attest to SERVPRO’s dramatic change over the years, as Jim and I enjoyed our 10 year anniversary this May and much has changed since our time began. This change has been positive, as the franchise has strived to remain up to date in its ability to handle the changing expectations of customers in today’s market. This March, a surprising press release brought forth perhaps the most colossal changes:

By Jaewon Kang and Miriam Gottfried

March 18, 2019 3:12pm ET

Blackstone Group BX -0.11% ?? LP is nearing a deal to acquire cleaning- and emergency-restoration services provider SERVPRO Industries Inc. for more than $1 billion including debt, according to people familiar with the matter.

The private-equity has emerged as the winner in an auction for SERVPRO run by investment bank Harris Williams & Co., the people said.

SERVPRO, of Gallatin, Tenn., operates a network of more than 1,700 franchises that specializes in fire, water, mold and other cleanup services for residential and commercial customers. The closely held company was founded in 1967 by Doris Isaacson and her late husband, Ted Isaacson, as a painting business and is currently run by their eldest child, Susan Steen.

In light of Ted Isaacson’s passing in 2017, two out of the three Isaacson children decided to retire from leadership positions within SERVPRO in order to enjoy time with loved ones. Blackstone swung in from where the Isaacsons left off, generating mixed feelings from SERVPRO employees concerning the future of the franchise. However, after attending the convention and learning about Blackstone’s plans, we are optimistic and excited about what this new ownership will mean for Team Wall’s customers in the years to come.

Lastly, we would like to recognize the members of our team, stronger than 70 in number, and their achievements. Thanks to these achievements, our franchise was ranked in the top 20 out of all 1700 franchises for 2018, making this the fourth year in a row of achieving this recognition. This humbling accomplishment is all thanks to our team’s endless devotion to excellence. However, this wouldn’t be possible without our incredibly loyal and supportive customers who have trusted us over the years. Thank you so much!

We are so elated and optimistic about our future as a franchise and cannot wait to share this journey with all of you!

With thanks,

Jim and Trish Wall