Advice on specialty construction / home services businesses

February 24, 2026

by a searcher from University of Southern California in Los Angeles, CA, USA

Hi all! I'm a first time buyer with a tech background looking for advice on specialty construction / home services businesses, bonus points if you have knowledge on the LA area. My general thesis is boomers are increasingly aging at home and are therefore looking to make improvements/modifications to their home and utilize services that enable them to stay independent in their home for longer. I'm buying into a franchise as a wedge to quickly enter and learn this space, and the plan is to acquire a portfolio of complementary businesses over the next few years. The specific franchise I'm looking at does shower / tub installations. As I finish up due diligence, would love to connect and chat with more people who have experience in this space. If you'd be open to connecting please let me know!

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to meet you. Good thesis. Bathroom modifications are the largest segment of the aging-in-place market ($5+ billion), and 73% of remodelers report demand has increased significantly over the past five years. But when you start acquiring complementary businesses with SBA financing, contractor licensing becomes your biggest hurdle. In California, shower/tub work requires a CSLB contractor's license (C-36 Plumbing, B General Building, or the newer B-2 Residential Remodeling). All require four years of verifiable trade experience. No shortcuts. Three ways buyers solve this: Existing employee who holds the license stays on as qualifier. Lenders want a solid employment agreement, not a handshake. Hire a new qualifier before closing. Same idea, but lenders are skeptical of last-minute hires. Seller retains partial equity (under 20%) and stays as RMO. Under current SBA rules, they must personally guarantee the loan for two years. This gives you a transition window. Starting with a franchise is smart because most franchisors handle licensing for you. But before you pursue independent add-on acquisitions, you need a licensing plan locked in. We have a lot experience financing specialty construction companies via the SBA. If this is a franchise startup, we can even help you get funding via the SBA, as long as its in the SBA Franchise directory. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a professional
from University of California, Hastings College of Law in Petaluma, California, United States

Great thesis and smart entry strategy. A few thoughts from the Five Experts network (and you might have already asked or thought about these): The aging-in-place thesis is well supported: walk-in tubs, grab bars, shower conversions, and accessibility modifications are one of the more recession-resistant home service categories because the demand is need-based rather than discretionary. The LA market is particularly strong given the concentration of older homeowners in areas like the San Fernando Valley, Pasadena, and the South Bay. We're based in California as well so look to this market quite a bit. A few things worth thinking through as you finish diligence on the franchise: Franchise unit economics vary significantly in specialty installation businesses. Make sure you understand the franchisee-level EBITDA after royalties, marketing fees, and required equipment purchases, not just the franchisor's disclosed numbers. The boomer customer demographic skews toward trust-based selling. Referral relationships with occupational therapists, home health agencies, and senior living advisors are often the highest converting lead sources in this space. Ask the franchisor what percentage of their top franchisees are generating leads from referral vs paid advertising. On the portfolio acquisition plan, the franchise is a smart way to learn the operational model before you start acquiring independents. When you get to that stage the diligence on independent home service businesses requires a different lens than franchise validation. We actually have a franchise expert on our platform at Five Experts who is currently available during diligence, or post Day 1. Happy to discuss any needs you have as you finish up diligence.

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