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Piece of the Pie

If your industry's facing consolidation, forming your own holding company may keep your business from getting swept up by the big guys.

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This story appears in the May 2005 issue of Entrepreneur. Subscribe »

More than a year ago, Jamison Kuiper, president of Rasmussen Siding and Roofing in Grand Rapids, Michigan, noticed some disturbing trends in the $250 billion home remodeling industry. A wave of consolidation was sweeping up smaller players, and huge manufacturers were venturing into installation--Rasmussen's small piece of the pie. "It was either act, or get run over," says Kuiper.

Kuiper and his father and partner, William, 55, opted for the former. But their simple S-corporation structure wouldn't allow them to bring in additional partners to help fund the acquisitions they had in mind. At the same time, they felt they needed a single brand they could more easily market in new regions. "The name Rasmussen means a lot to people in Grand Rapids, but it doesn't mean anything to people in Ohio or Indiana," says Kuiper, 31. "As far as streamlining our marketing dollars, we would rather market one brand than 100."

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