KKR Pays Roughly 20x EBITDA for A1 Garage Door

KKR is paying about 20 times EBITDA for Phoenix-based A1 Garage Door Service, according to a PitchBook report citing a person familiar with the deal. Reuters first reported the roughly $2 billion acquisition in early September. The multiple is the real news: it prices a garage door repair company like a software business.

Why the number is so high

A1's EBITDA grew from $27 million in 2022 to about $100 million this year, largely through add-on acquisitions, including Delaware and Philadelphia operator United Garage Doors in September. Small independent shops still trade at 2x to 6x EBITDA, so every add-on bought cheap and folded into a platform valued near 20x creates value on paper the day it closes. That spread is what private equity is paying for.

A crowded field of buyers

PitchBook counts 21 PE-backed garage door acquisitions through Sept. 28, worth $4.2 billion, the highest nine-month total in a decade outside of 2021. Oak Hill Capital paid about 18x for Guild Garage Group earlier this year, and Berkshire Partners and General Atlantic are reportedly hunting for assets. KKR already owns Neighborly, parent of franchisor Precision Garage Door Service, which puts a franchise system and a corporate roll-up under one owner.

What it means for franchise operators

Multi-unit franchisees in garage door and adjacent home services now hold assets that platform buyers want, and Monogram Capital's 2024 stake in a Precision Door franchisee shows franchisee groups are already in play. Owners should expect more inbound offers, but franchise agreements, transfer approvals and territory rights will shape what a buyer pays. Clean books and documented technician capacity matter more than ever, since dispatch speed decides who wins the job in this category.