LGA Garage Eyes Growing Texas Commercial Market

The founder-owned garage door company with over $10 million in revenue wants to have a balanced revenue mix of 60% installations and 40% recurring services in three to five years.

Spring, Texas-based LGA Garage Door Service LLC plans to boost recurring services, expand further into the commercial market and cover more territory in Texas over the next three to five years, founder Tzagana Goodo, 43, told The Deal.

LGA, which predominantly does garage door installations, is targeting recurring services such as repair and maintenance to be about 40% of the company's revenue mix. Services were a bigger portion of the business until 2022, but Goodo saw an opportunity to provide more installations post-Covid when several competitors were struggling with supply shortages.

"At that time, whoever had doors could actually dictate the price, [so] we went really hard on installations right after Covid," Goodo said. "But at end of 2023, I decided that I cannot be installation only, but I need to balance it with services."

Founded in 2014, LGA provides garage door and opener installations and repairs for residential facilities, including multifamily homes, and commercial clients.

Business at a Glance:

• Workforce: 13 employees; eight subcontractors
• Annual revenue: over $10 million
• Locations: Austin and Spring, Texas
• Customer base: 80% residential, 20% commercial
• Services mix: 80% installations, 20% services

Goodo drove twice a week to different parts of Texas, including Houston, Dallas and San Antonio post-Covid to source garage doors and heavily invested in marketing, manpower and business development to quickly capture market share. The foothold LGA gained in the installations market is helping it negotiate better terms with manufacturers.

While the company does installation projects across the state, its services portion of the business is limited to Spring, Houston and Austin, where it recently opened a new office. Goodo hopes to service the Dallas metro area from the Austin location as well next year.

Goodo also wants to create separate divisions for residential and commercial to streamline the business. He also wants a bigger share of the commercial market, which includes overhead doors and loading dock equipment services, amid growing population and warehouses in the state, particularly Austin.

LGA has fixed prices for the same type of clients across all locations; trains its technicians, including subcontractors, on software and customer service twice a year and partners with well-known manufacturers such as Clopay Corp. and LiftMaster.

"Quality of service and quality of product are an integral part of growth, because if you don't have those two, you won't have any returning customers," Goodo said.

Platform in the Making

The company is on private equity's radar, though Goodo isn't ready for a sale yet.

"We're getting a lot of offers to partner or investment or to sell, but we're not there," Goodo said.

A growing number of private equity firms are investing in the garage door market. Gridiron Capital LLC, for instance, launched residential and commercial garage door services platform GarageCo Holdings LLC in March.

Cortec Group Management Services LLC, meanwhile, acquired A1 Garage Door Service Holdings Inc. in January 2023 with debt financing from Audax Private Debt.

Goodo started LGA in 2014 after going on a spring repair job with a friend. He handled all the jobs himself for two years before hiring his first technician in 2016.