Why Local Ownership and Integrity Matter
December 11, 2025
A recent trend shows that private equity firms are acquiring a range of local businesses, from plumbing and heating services to remodeling companies. For example, Minnesota Rusco was recently bought by Renovo Home Partners, an out-of-state private equity firm.
MN Rusco’s sudden shutdown is a stark reminder of the risks involved when local businesses are absorbed into large, debt-fueled corporate structures. A beloved local name is bought out; its operations are leveraged, and when financial difficulties arise, the focus shifts away from customer commitment and employee well-being toward corporate restructuring and liquidation.
These situations highlight crucial differences between companies driven solely by maximizing investor returns and those dedicated to long-term community trust and ethical practices.
A Different Kind of Company
At Rainbow, we believe the integrity of a business is rooted in its ownership, its employees, and its commitment to the local community it serves. While the home improvement industry often sees consolidation and distant corporate control, we stand apart.
We are 100% Employee-Owned (ESOP).
Unlike companies controlled by a chain of private equity and investment firms, Rainbow is an Employee Stock Ownership Plan (ESOP) company. This means every individual who works here is an owner.
- Shared Stake: Our team members don’t just work for a paycheck; they work to uphold the value and reputation of a company they collectively own. This shared stake directly translates into higher quality work and greater accountability on every job site.
- Long-Term Vision: Decisions are made with a focus on long-term sustainability, customer satisfaction, and employee stability—not on short-term financial engineering to please distant shareholders. When you hire Rainbow, you are hiring a team of owners who are personally invested in the success of your project and the future of the business.
- Local Accountability: Our focus remains squarely on our local market. We are not one of 18 entities managed by a parent company in another state. We are accountable to our neighbors, our community, and the reputation we build every day.
Restoring Trust in Home Services
The Rusco failure is a devastating example of what happens when a company loses its local roots and operates on a “razor’s edge” of debt. It breeds skepticism and distrust among consumers.
We are committed to being the antidote to that skepticism.
In an industry where corporate giants can dissolve overnight, we remain grounded, employee-owned, and focused on building lasting relationships, one trusted service at a time.
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