To assess whether HomePro Services is an attractive acquisition target and whether margins can sustainably improve, I would structure the diligence around three core areas.

1. Market and revenue durability
   Evaluate whether HomePro operates in attractive, stable end markets and whether revenue growth is sustainable. This includes assessing underlying demand for HVAC, plumbing, and electrical services, the non discretionary nature of repairs versus replacements, regional market fragmentation, and long term demand drivers such as aging housing stock. Within revenue quality, separate organic growth from acquisition driven growth by analyzing same branch growth, repeat customer behavior, maintenance contract penetration, and pricing power.
2. Unit economics and margin drivers
   Analyze profitability at the branch and service line level to understand why margins trail peers. This includes evaluating technician productivity, labor mix, utilization rates, parts and equipment costs, and branch level overhead. Identify whether margin gaps are driven by structural issues such as wage inflation or by operational inefficiencies that can be addressed through process standardization, procurement leverage, or improved scheduling.
3. Scalability and execution risk
   Assess whether HomePro’s operating model can scale post acquisition. This includes reviewing the level of process standardization across branches, effectiveness of prior integrations, management depth, and systems supporting scheduling, dispatch, and pricing. Identify key execution risks such as technician turnover, integration complexity, and regional underperformance that could limit margin expansion.