Houzz calls on Goldman Sachs for IPO readiness

Houzz, which offers home improvement and furnishing services online, will prepare for an initial public offering (IPO) with help from Goldman Sachs, the Silicon Valley Business Journal reported Thursday (October 21).

Houzz hopes to make his public debut in early 2022, according to the report. Last year, the company cut 10% of its staff, cut executive salaries and scrapped plans for its own furniture line in response to the downturn in business due to the economic impact of the pandemic.

However, Houzz has seen some resurgence, due to the large number of people spending more time at home over the past two years and a renewed demand for home improvement services, the report says.

Last year the CEO Adi Tatarko said the company has seen a 60% growth in the number of owners seeking professional help, and the company has since branched out into new services like Houzz Pro, a project management service and customer base used by contractors, according to the report.

As it becomes public, Houzz will likely be faced with questions about whether home improvements linked to the pandemic will continue to thrive as businesses and employees return to the office, according to the report.

Marine Sarkissian, the company’s senior economist, said the unexpected onset of the pandemic had the effect of dampening much of the optimism in the early parts of 2020.

Read more: Home improvement companies hit as consumers pause projects

In April 2020, she said entrepreneurs were still optimistic and believed 2020 would go well.

Sixty-six percent in the construction industry said they were positive, while 56% in the architecture and design industry said the same.

This could be because the year started off strong and companies had strong order books even in the second quarter; however, shipping delays and similar issues were already starting to show up by this time.

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