Ensuring all the companies under its umbrella employ effective software has not only helped KeyServ track performance, but it has also provided another level of transparency and encouraged growth, says CEO Jeff Domenick.
When the Fernandina Beach, Fla.-based firm started in 2021, it closed three initial acquisition deals and has since completed four more. The company’s focus on acquisitions and organic growth has helped it reach No. 90 on the 2024 LM150 list. KeyServ experienced an 87-percent increase in revenue from 2022 to 2023, giving it the No. 5 growth rank amongLM150 companies.
KeyServ has seen strong organic growth from all of those acquisitions and continues to consider companies that will fit within its growth strategy. When considering a company for acquisition, Domenick says he first looks at the sellers to see if they would make good partners.
He also focuses on finding established companies with margins either at or above industry standards. While KeyServ primarily focuses on residential properties, it also offers commercial services.
“We really think that both segments are important parts of the industry,” Domenick says. “Our goal is to have a commercial and residential component in all the markets we compete in.”
One of the first things KeyServ does after acquiring a company is to implement a solid technology platform that shows where the business is winning and where it is not performing quite as well.
“While the companies were profitable and growing, some of them didn’t have a granular view of what was truly driving their gross margin profile,” Domenick says. “By implementing the software into our companies, it really gives us a level of transparency now.”
KeyServ’s leaders plan to continue focusing on technology to ensure the entire team understands what drives the company’s success and how they track and measure it. Currently, the primary software KeyServ uses in the field is Service Autopilot.
Domenick says it’s important to incorporate technology into the business from the start, no matter how big or small a company is.
“Understanding the things that really drive your profitability and sharing those drivers with your team is important,” he says. “I think it’s a lot easier to implement technology earlier in the journey than later. You can create bad habits when you don’t have that visibility.”
In addition to software, KeyServ also focuses on the team. After acquiring a company, it knows there will be changes for the employees but looks to make them as positive as possible. It recognizes the tenure employees had with the previous company and offers competitive pay, benefits, paid time off and 401(k)’s with strong matching, he says.
“We want to make sure our benefits are as good as or better than what they had,” Domenick says.
KeyServ also looks to add on services that customers have a difficult time finding on their own. For example, if the company handles clients’ weekly lawn services, it also wants to become their turf care, irrigation maintenance and enhancements provider.
“We want to be that resource for our customers across the board … and have a frictionless experience for customers when it comes to managing their outdoor environments,” Domenick says. “We appreciate the fact that we have relationships with our customers, and they see us as a trusted advisor. That’s important for us to expand.”
Domenick says KeyServ is looking to expand into the southeast and plans to close two to three more deals before the end of the year.
“We’re very focused on making sure our growth is for the growth of the business and not for the sake of growth,” Domenick says. “Not all revenue dollars are the same.”
