Smart Business Magazine, August 2019

26 Smart Business Cleveland August 2019 DEALMAKERS DEALMAKER FEATURE H Jacks Plumbing Heating Co has never made an acquisition in Northeast Ohio But John Langer can point to key deals done in New York and Pennsylvania that paved the way for the then Erie based companys successful move into the market These acquisitions provided valuable technical expertise early on in our growth in Ohio says Langer president of the now Wickliffe based business Over the first few years until we could build our own team in the marketplace they would commute in from Erie and help us provide the level of service and quality workmanship that our customers had become accustomed to So although we never acquired any companies in Northeast Ohio some of the individuals that we acquired in other markets played a technical role in our growth and advancement in this market With 120 employees H Jacks has built its reputation on 24 7 service and serves Western New York Northwest Pennsylvania and Northeast Ohio But as Langer looks to the future an expected labor shortage in the plumbing profession may put him back in the dealmaking game We caught up with Langer to learn about the role acquisitions can play in helping companies in the service industry maintain their reputation for top notch customer satisfaction and the importance of culture in making those deals work Addressing a need Contractors across the U S are reporting a significant shortage in new plumbers Culture is key when exploring service sector acquisitions John Langer BY MARK SCOTT mscott@ sbnonline comgoing into the field a trend that Langer has been closely monitoring By 2023 its expected that another 200000 plumbers will be needed nationally to keep up with demand Langer says As our industry continues to change and evolve its making it more difficult for smaller family owned plumbing and heating companies to continue to be viable and successful he says Plumbers possess technical skills that are in great demand in the marketplace One of the ways that professional plumbing and heating companies service companies and skilled trades in general can combat the labor shortage is to look for potential acquisition targets in their marketplace It can be a good tuck in fit that can help provide the level of technical expertise you need to continue to be successful in the industry Langer is always open to having conversations with other service providers about potential deals A lot of companies that are in our industry are looking to either retire or sell and they are concerned about their employees he says Provide an opportunity Companies in the service industry that are looking to make a deal need to be transparent on the front end about their expectations If the acquired company had a culture in place where you work Monday through Friday 8 to 4 30 didnt work Saturdays and didnt take on emergency work and we acquired that company now all of a sudden we have different levels of expectations from a service standpoint Langer says That probably wouldnt be a good fit for us So one of the big things that we looked for in the companies that we acquired was do they still have a passion for service Do they understand this isnt a 9 to 5 industry Often companies in the service industry that are looking to retire or sell are in that position because they feel burned out Langer says Early in the process we really had to look at ways that we could improve their quality of life Langer says How do we take some of the stress off of them as former owner operators that would now be field supervisors with us They had to understand that were not in a 40 hour a week industry But with our resources and having other people who are able to help carry the ball it wouldnt all rest on their shoulders anymore Create a positive environment Finally effective acquisitions are often a result of being a good listener There is an old saying that people typically dont care how much you know until they know how much you care Langer says Theres the fear of the unknown on the acquired company You have a responsibility to make that transition as smooth as possible and make sure that for the company that merges into your company their quality of life improves If you can provide opportunities for additional growth and advancement within your organization to continue to motivate them to become better at their particular trade the deal has a better chance of succeeding If you cant provide that opportunity to improve their quality of life or if it isnt a good fit regardless of the additional short term revenue that you could experience or the additional short term help that youll gain in technical expertise its not going to be a deal that is built for the long term Langer says www hjacks com