Boxwood Partners Advises Rapp Operations, a Leading Franchisee of Neighborly, On its Partnership with Franchise Equity Partners
Boxwood Continues Its Momentum Within Franchising as Investors Turn Focus Towards Residential Service Franchisee Opportunities
JUPITER, FL – (Nov 15, 2023) – Boxwood Partners is pleased to announce a partnership between Rapp Operations, LLC (“Rapp Operations” or “the Company”), the largest franchisee of Precision Garage Door Service (“PDS”), a Neighborly® company, and Franchise Equity Partners, a private investment firm on a mission to create long-term partnerships with quality franchisees and franchisors. Rapp Operations marks the first investment for the management of Reliable Residential, the holding company formed to continue to acquire other Precision Door Service operations and other Neighborly brands.
Boxwood Partners, a leading boutique middle-market investment bank known for its deep experience with entrepreneur and family-owned businesses, acted as the exclusive sell-side advisor to Rapp Operations on the transaction. The transaction was led by Brian Alas, Managing Director, Madison Day, Vice President, and Justin Jasper, Analyst. The terms of the deal were not disclosed.
Institutional capital investment into service-based franchisees continues to build momentum within residential and commercial services sector. The Rapp transaction marks Boxwood’s third franchisee transaction and second within the Neighborly system.
“Rapp Operations is the preeminent franchisee within PDS and one of the most established operators under the Neighborly umbrella. The inherent resilience of garage door services to economic downturns, combined with the best-in-class truck-level economics of the service vertical, positions Reliable Residential as the optimal starting platform within Neighborly,” stated Brian Alas, Managing Director of Boxwood Partners.
The leading garage door franchise with more than 100 locations nationwide, Precision Garage Door Service was acquired by Neighborly in 2020 and has grown considerably under the home services company’s vision. Precision Garage Door Service has a clear competitive advantage due to lead generation, technology, inventory, sales processes, speed to service customers, and the ability to attract talent.
“We are extremely appreciative of all the hard work and guidance provided by the Boxwood team throughout the entire process,” said Carlos Morales, President of Rapp Operations. “Their experience and knowledge of both residential services and franchising helped us identify the ideal partner for our business, including one that was aligned with our vision and values. FEP’s perpetual investment horizon was very attractive to our team, as it allows for long-term decision making to be the top priority.”
“This partnership positions us to work alongside the premier franchisor in residential services. We look forward to supporting management and Neighborly as they implement a growth strategy that will help build the presence of Precision Garage Door Service and other Neighborly brands in attractive markets across the U.S.” said Michael Esposito, Founding Partner of Franchise Equity Partners. Rapp is the eighth investment for FEP.
“Rapp represents an opportunity to invest not only in a recession-resilient end market, but also stands to benefit from the broader exposure to Neighborly’s portfolio of service brands” added Madison Day, Vice President of Boxwood Partners. “The Company’s partnership with FEP will provide the necessary resources to promote both growth and durability in the years to come.”
Brian Myeroff and Bryan DaCanal from FORVIS acted as the accounting advisor to Rapp Operations, LLC while Cam Moore and Trey Coker from MFM served as legal counsel.
MidCap Financial provided debt financing for the transaction. Davis Wright Tremaine LLP served as legal counsel to FEP.
About Boxwood Partners
Boxwood Partners, LLC is a boutique investment bank based in Jupiter, Florida with offices in Richmond, Virginia. Boxwood Partners combines a unique blend of senior-level transaction advisory, business operating experience, and proven process execution skills to give its clients a distinct advantage in the market. The firm’s extensive relationships within the global capital and buyer communities (including U.S. and international private equity groups, corporations, and lenders) and other important transaction-related service providers such as consultants, attorneys, and accountants, ensure that the firm’s clients receive the attention, service, and results they deserve. For more information about Boxwood Partners, please visit www.boxwoodpartners.com.
About Franchise Equity Partners
Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. Its differentiated approach combines extensive corporate finance and operating experience with an initial target portfolio size of $1 billion to enable growth, ownership simplification, succession and estate planning, among other strategic business opportunities. To learn more about Franchise Equity Partners, please visit www.fep-us.com or follow the firm on LinkedIn.
About Precision Garage Door Service™
Precision Garage Door Service™, a Neighborly® company, is the nation’s leading residential garage door repair company. Precision Garage Door Service™ provides consumers the highest levels of customer service and value for all garage door needs, specializing in garage door repair, new garage door installment, and repair of garage door openers from more than 100 locations in the U.S. Acquired in 2020, Precision Garage Door Service™ is part of Neighborly®, the world’s largest home services company with more than 30 brands and 5,000 franchises collectively serving 12 million+ customers in six countries, focused on repairing, maintaining and enhancing homes and businesses. Neighborly® brands are found at Neighborly.com and through the Neighborly App. For more information about Precision Garage Door Service™, visit PrecisionDoor.net.
