HomePro’s total revenue grew from 240 to 360 over two years, representing strong headline growth. However, organic growth from existing branches increased from 210 to 255, which is modest relative to total growth. Over this period, acquisitions accounted for the majority of incremental revenue, growing from 30 to 105.

This indicates that recent growth has been largely acquisition driven rather than organic. While the business has demonstrated the ability to acquire and integrate new branches, organic growth appears limited. This raises sustainability concerns if acquisition pace slows post acquisition and increases the importance of operational improvements, pricing discipline, and cross selling to drive same branch growth going forward.

This sets up the next step of the diligence to understand why margins remain below peers and whether operational improvements can unlock EBITDA expansion across the existing footprint.