Brighter Living Properties acquires a manufactured housing community in the Omaha Nebraska Region.
Brighter Utilities acquires B&B Professional Plumbing and its real estate in the Tampa Bay Metro.
Jason is the founder and CEO of Brighter Utilities, an investment group with seven figures in assets under management in the commercial plumbing sector. Brighter Utilities recently acquired B&B Professional Plumbing, a commercial plumbing company operating out of the Tampa Bay Metro, by an asset sale of approximately $2.5M. The company has a 30-year history of outstanding relationships with large commercial retailers in the Tampa Bay Metro. The company primarily focuses on new commercial construction and ongoing maintenance. Companies such as Publix, LA Fitness, Aldi, HomeGoods, Winn Dixie, BJs, Westfield Countryside Mall, and Sprouts all trust B&B Plumbing with their plumbing projects. Many of these companies have asked B&B Plumbing to be their main plumbing contractor as they expand in Florida.
Our Investment Thesis On B&B Professional Plumbing:
- B&B Plumbing has high returns on capital invested in the business. Plumbing only requires an office, a small shop to store tools and equipment (very minimal), and work trucks. B&B Plumbing is efficient in their spending on new assets, and their record for returns on invested capital is quite impressive amongst peers, and especially when compared to other capital-intensive industries. The less capital we have to invest in the business on equipment, the easier it is for us to profitably grow.
- Proven record of delighting customers with quality work at an affordable price.
- The growth prospects for B&B Plumbing are significant, both from a macroeconomic perspective (Florida’s population is growing rapidly – the Tampa Bay Metro consistently ranks in the top ten fastest-growing metros) and a microeconomic perspective (the company has proven in the past that it can profitably grow). Also, there are growth opportunities in the residential sector in Florida because of the population influx – something that a commercial plumbing company with good management can take advantage of. Commercial jobs are more complex than residential, so it is easy to step down on the complexity ladder, but march harder to move up.
- B&B Professional Plumbing was acquired at a reasonable earning multiple that should contribute to its future success as a company and satisfy investors. If we didn’t like the price for us and our investors, we wouldn’t have bought the company. So, we think there is value in the earnings multiple we paid.
- We think there is a moat in the commercial plumbing sector, and we think B&B Plumbing adds to that moat. Commercial plumbing is less crowded than residential plumbing because the jobs are more complex. On average, commercial jobs have slightly lower margins than residential jobs. The commercial side makes up for this with (1) the ability to secure large and stable contracts that make scaling revenue and profits easier in many cases, and (2) less competition and fewer entrants into the commercial space because the work is more complex, requires special know-how and a reputable track record to land stable contracts from large companies.
- Fairly inelastic demand (plumbing is known to be inelastic during recessions because of its necessary nature in today’s society).
- Franchising opportunities.
We believe all these factors play a role in why a number of smaller PE firms have entered the plumbing industry as of late. Brighter Utilities has many larger acquisition targets in the pipeline (both plumbing and HVAC contractors), and will continue to make acquisitions in the utility sector when the economics and the relationships make sense.
Brighter Living Properties:
Jason Rogers is also the CEO and founder of Brighter Living Properties (BLP), a real estate investment group with seven figures in assets under management. BLP is on a mission to transform the affordable housing industry. BLP completed its first acquisition in August of 2019, and it’s been a major success for the company and its investors. BLP’s new manufactured housing community has an intrinsic competitive advantage within the community it serves in the great state of Nebraska. With a significant amount of economic growth and job growth, the area that BLP’s new housing community serves has a major supply-demand imbalance for affordable housing. This is evidenced by the fact that during the Coronavirus Pandemic, economic occupancy has stayed at 100% for the community. All prospects point toward this acquisition being a major success for years to come.
Jason is a former valedictorian with a professional background centered around entrepreneurship. He began his career when he sold $187k in commercial roofing during the summer between his junior and senior years of high school. His sales actions opened major new government accounts including Ontario-Montclair Unified School District, Whittier Union S.D, and Westside Unified S.D.
Jason went on to earn a valedictorian award at Santiago Canyon College before receiving his Bachelor of Arts (B.A.) with honors from the University of California, Los Angeles. He then continued along the academic path by joining a research team at Stanford University, before turning his focus to entrepreneurship.
In early 2019, Jason ventured on a process towards becoming an acquisitions entrepreneur. Only months before, Jason knew little about M&A and finance. Since that time, he’s devoured everything he can get his hands on regarding the subject, as well as seeking out many mentors, board members, and advisors who have executed billions of dollars in M&A transactions.