Key Takeaways
- • WSPA 7NEWS reports on "stealth consolidation," in which national private equity and investment firms acquire local businesses while often keeping the original family name, according to experts cited in the piece.
- • Eileen Appelbaum, Co-Director of the Center for Economic and Policy Research, warns the trend has expanded from hospitals, doctors' offices and ambulance services to funeral homes, cemeteries, HVAC, plumbing and pest control.
- • The Federal Trade Commission's 2024 report "Slow the Roll-Up" cites "serial acquisitions" in anesthesiology practices, veterinary clinics and dialysis clinics as a challenged pattern of consolidation.
- • Consumers cited in the report describe sharp price increases after local firms were acquired, including a fencing company and a pest control business in the Upstate, though the article notes that not all private equity acquisitions raise prices.
- • South Carolina does not require private equity firms to register as new owners of small businesses they buy, making ownership difficult to trace.
Summary
WSPA 7NEWS, through its "Here to Help" consumer series, examines a trend experts call "stealth consolidation," in which national investment firms buy local companies, reduce competition, cut jobs and, according to the report, leave consumers paying more. The story frames the issue as a possible driver of price increases beyond general inflation.
The report describes consumer experiences in the Upstate of South Carolina. One homeowner, identified as Harris, received a roofing quote of $48,000, which was $35,000 more than her insurance would cover, along with financing offered at roughly $450 for 15 years. Jon Meyer, in Easley, received a bid $6,000 to $7,000 higher than a local roofer's quote. Local roofers John Roberson, whose family business Joe Roberson's Roofing has operated since 1965, and Brian Gilstrap, a fourth-generation roofer, said they have seen unusually high quotes and have been approached by firms seeking to buy their companies. Both said they declined. Gilstrap cited a job quoted at $70,000 that he estimated at about $30,000 in material and labor.
Eileen Appelbaum, Co-Director of the Center for Economic and Policy Research and author of "Private Equity at Work, When Wall Street Manages Main Street," said the practice has moved beyond healthcare into local family-owned services. She said acquirers seek local market control and that consumers then lack alternatives. The Federal Trade Commission has described this pattern as "serial acquisitions," in which investors buy small competitors in a region, a practice it said can raise prices, reduce quality and limit choice.
Consumers interviewed by the station reported price increases after acquisitions. Amanda Ortega in Greenville said a fencing company's quote rose after a private equity firm bought it, and David Sykes in Simpsonville said pest control prices rose consistently after his provider was sold to a larger firm. The article notes that the original family business names often remain unchanged, and that while not all private equity acquisitions lead to higher prices, the number of targeted industries has grown in the last two years. The station did not name specific companies.
The report also outlines how consumers can check ownership. Searches through the South Carolina Secretary of State's Business Name Search can help, but South Carolina does not require private equity firms to register as new owners. The station found a South Carolina pest control company with a Delaware registered agent, noting that many private equity entities are registered in Delaware. Harris ultimately hired a local company that quoted $11,000.
The report describes consumer experiences in the Upstate of South Carolina. One homeowner, identified as Harris, received a roofing quote of $48,000, which was $35,000 more than her insurance would cover, along with financing offered at roughly $450 for 15 years. Jon Meyer, in Easley, received a bid $6,000 to $7,000 higher than a local roofer's quote. Local roofers John Roberson, whose family business Joe Roberson's Roofing has operated since 1965, and Brian Gilstrap, a fourth-generation roofer, said they have seen unusually high quotes and have been approached by firms seeking to buy their companies. Both said they declined. Gilstrap cited a job quoted at $70,000 that he estimated at about $30,000 in material and labor.
Eileen Appelbaum, Co-Director of the Center for Economic and Policy Research and author of "Private Equity at Work, When Wall Street Manages Main Street," said the practice has moved beyond healthcare into local family-owned services. She said acquirers seek local market control and that consumers then lack alternatives. The Federal Trade Commission has described this pattern as "serial acquisitions," in which investors buy small competitors in a region, a practice it said can raise prices, reduce quality and limit choice.
Consumers interviewed by the station reported price increases after acquisitions. Amanda Ortega in Greenville said a fencing company's quote rose after a private equity firm bought it, and David Sykes in Simpsonville said pest control prices rose consistently after his provider was sold to a larger firm. The article notes that the original family business names often remain unchanged, and that while not all private equity acquisitions lead to higher prices, the number of targeted industries has grown in the last two years. The station did not name specific companies.
The report also outlines how consumers can check ownership. Searches through the South Carolina Secretary of State's Business Name Search can help, but South Carolina does not require private equity firms to register as new owners. The station found a South Carolina pest control company with a Delaware registered agent, noting that many private equity entities are registered in Delaware. Harris ultimately hired a local company that quoted $11,000.
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