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Local Austin Ownership in a Market of Acquisition
By George Drazic, Owner/President
Efficient AC, Electric & Plumbing is a local, family-owned company with only two principals – my wife, Molly, and me. This is a rare statement given typical company transitions. For us, it is a commitment to become the best craftspeople in the business and serve our customers and employees to the best of our ability. Efficient is in it for the long haul, and we have been from the beginning. Since 1976, we have grown and added services that fit our values and our skills.
Currently in favor for service business owners is sale to large statewide or national service companies, or private equity investors. The goal with these transactions is to build a much larger single entity, dramatically increase valuation and re-sell – in many cases, in a few short years. The fastest way to do this is through multiple acquisitions and service price restructuring (increases). This is also called a “roll up.” In theory, some large-scale efficiency can be gained. In practice, some large scale overhead and financial demands will be gained. While the marketing can be attractive, there is often little to be gained by the consumer. In the end, the consumer is faced with a less personal and more expensive solution – one that still needs local people to run the calls.
Economy of scale only goes so far when the main offering is human. A business that sells products is far different from one that sells services. Humans are unique, and when treated all the same, many people are not treated well – or the way they wish to be treated. Consumers are sophisticated as a whole, particularly in this market, and want a personal approach – not just standard offerings.
As a family-owned and oriented company, it is important to us to know both our customers and our employees – and what their individual needs are – so we can strive to meet them.
There are few larger local companies left in the Central Texas market. We are proud to be one of them, and we plan to keep it that way.
