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.
Opinions expressed by Entrepreneur contributors are their own.
More than a year ago, Jamison Kuiper, president of RasmussenSiding and Roofing in Grand Rapids, Michigan, noticed somedisturbing trends in the $250 billion home remodeling industry. Awave of consolidation was sweeping up smaller players, and hugemanufacturers were venturing into installation--Rasmussen'ssmall piece of the pie. "It was either act, or get runover," says Kuiper.
Kuiper and his father and partner, William, 55, opted for theformer. But their simple S-corporation structure wouldn't allowthem to bring in additional partners to help fund the acquisitionsthey had in mind. At the same time, they felt they needed a singlebrand they could more easily market in new regions. "The nameRasmussen means a lot to people in Grand Rapids, but it doesn'tmean anything to people in Ohio or Indiana," says Kuiper, 31."As far as streamlining our marketing dollars, we would rathermarket one brand than 100."
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