Post-close · Home Services

Home Services Post-Close Governance: An Independent Sponsor's Counsel

Securities and M&A counsel for independent sponsors designing home services transactions, from LOI to close to the capital markets that open up afterward.

EV range $8M to $80M EV EBITDA $2M to $15M Audience Independent Sponsor
The deal context

Home Services deals in the lower middle market run a specific playbook. Post-Close Governance is where the structure either holds or starts to leak.

The typical home services platform sits at $8M to $80M EV with EBITDA in the $2M to $15M range. The thesis runs on regional roll-ups of HVAC, plumbing, and electrical operators. The cleanest home services deals close in 60 days from LOI. The mess is almost always in the licenses, not the financials.

The moves

How Post-Close Governance actually gets structured.

  1. Build a board with sponsor majority, one LP-elected seat, and one independent.

  2. Define LP protective provisions narrowly, focused on dilution, exit, and related-party transactions.

  3. Set information rights at monthly financial and quarterly board-level updates.

  4. Plan the annual budget approval cadence so the sponsor can run the business.

  5. In home services, layer in working capital peg that survives a slow February as part of the Post-Close Governance workstream.

The common mistake

Negotiating governance like a fund LPA. independent sponsor governance has to be lighter and faster.

Jason's take
"Governance design decides whether the operator runs the company or files reports."
Jason Powell · Post-Close Governance
Capital after close

The deal is one thing. The capital that opens up after close is another.

The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
ENGAGE THE PRACTICE

Post-Close Governance for Home Services, on independent sponsor terms.

Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.