A couple of weeks before Nexstar Network held its annual Super Meeting last fall, President and CEO Julian Scadden posted on Substack, “Why I Proactively Cut 33% of My Business” (https://tinyurl.com/275dkm2b) that gave his reasons for parting ways with the group’s private equity-backed members, cutting not only one-third of its members, but saying goodbye to some $100 million in revenue, too.

“Nexstar wasn’t built just to maximize revenue,” Scadden wrote, “It was built to serve people like my past self, the high school dropout who went from digging ditches to owning their own plumbing company and who knew there had to be a better way.”

After the Super Meeting, we interviewed Scadden for more of his thoughts on his big decision.

PHCPPros: You’ve emphasized that Nexstar is built on principles based upon contractor-ownership. How did private equity participation begin to conflict with Nexstar’s original mission and member expectations?

Scadden: It came down to us answering one important question: Who is Nexstar built to serve?

Our mission is to help the world’s best tradespeople become the world’s best businesspeople. And, historically looking back to when Nexstar began in 1992, our founders – who were visionary contractors – were independently owned, and they recognized they could elevate our industry and succeed together through education and sharing. They were not backed by institutional capital, which is fundamentally different from the owner-operator model we’re honored to serve. They ran their businesses to build their legacy and support their families and their employees, while serving their communities. 

PHCPPros: Any particular defining moments when you realized the organization could no longer support PE-owned members?

Scadden: There wasn’t necessarily a defining moment related to a date on the calendar or a single conversation. Particularly during the COVID pandemic and shortly thereafter, we saw a lot of high-performing members become some of the most successful businesspeople regardless of industry, and regardless of being PE-backed or independent.

So, the decision did not happen overnight. Over the course of the last several years, the number of private equity owned businesses began to grow. And a year ago, our board of directors, comprised of members who help chart our strategic direction, along with our senior leaders at Nexstar, had to assess this shift in membership and thoughtfully decide if they fit with our mission. The decision made then came down to the fact that PE members are not who Nexstar is built to serve. We evaluated our mission and our bylaws; we had to make a tough decision. And for some of our PE members the Nexstar mission had been achieved. We refocused and made a commitment on who we’re built to serve.

PHCPPros: What types of pressures or concerns were you hearing from independent, contractor-owned members that contributed to your decision?

Scadden: There was frustration and lack of focus. It comes down to the fact that these investors have resources to acquire talent, invest in marketing and leverage volume purchasing. Most smaller operators cannot invest in the same ways. The two distinct business models are vastly different – from their purpose, their passion, their pursuits. Now our members can fully and intentionally focus on their businesses, collaborate with their peers, and decrease the amount of distraction that came with the presence of corporate groups.

PHCPPros: Nexstar has given up a substantial amount of revenue by enforcing this policy – your Substack mentions giving up a third of your membership and $100 million in revenue. How did you evaluate this short-term financial sacrifice versus the long-term cultural and strategic benefits?

Scadden: When we announced the decision to sunset our PE members, I explained our rationale, that Nexstar is following our mission. It was a decision to choose purpose over profit. I’ve said, growth without purpose is cancer. It spreads. It consumes. It eventually kills the host. So, it cost us about half our revenue, but what we gained is invaluable. We are already welcoming a surge of new and innovative members; operators are seizing the opportunities for growth and ready to scale. 

PHCPPros: From a leadership perspective, what was the internal discussion like with your board?

Scadden: The conversations were thoughtful and future-looking and business-focused. The board used the same basic business formula we advise for our members: if any part of your business is not part of your core competency or if your business model starts to grow beyond 10%, it either needs to become its own business or it needs to be stopped because it will become a distraction. 

PHCPPros: For the PE-backed members who were removed, what were the most common reactions?

Scadden: The decision to sunset our PE-backed members was not taken lightly, and candidly, there have been tough conversations. There have also been positive interactions and well-wishes. These are deep relationships held within a tight-knit industry. These are life-changing relationships. Generational relationships. Few were surprised; most saw it coming. That does not discount the fact that for some it was more difficult than for others. 

PHCPPros: How do you believe this decision will influence Nexstar’s reputation in the industry, especially among contractors who distrust private equity involvement in the trades?

Scadden: It solidifies our purpose and clearly defines the fact that the independent contractor has a trusted and proven network built to serve them. At the end of the day our reputation is built on our members’ success and our commitment to our trades. 

PHCPPros: How has the coaching environment already changed since the exit of PE-backed members? Are coaches reporting different energy, engagement levels, or conversations with the remaining base?

Scadden: First, I could not be prouder of our coaches and trainers – and our entire organization – as we’ve navigated this shift and realignment of our membership. And yes, our coaches are on the frontlines supporting members every day and at every level of their business.

When a new member joins, from day one, our coaches are asking about their strategy and goals – and their job is to help them achieve those goals. That has not changed. What we are seeing is our coaches giving their time and resources to holistically support independent business owners. They are looking for ways to connect members and to celebrate our independent operators and their teams who are winning in exceptional ways. 

PHCPPros: On a related note, what new opportunities does this open for training and peer groups that may not have been possible before?

Scadden: Timely question as we look ahead to 2026. Nexstar will continue to bring our members together to learn and share openly – we know from 33 years of experience, that is a key to their collective success. That will fuel our future and our mission. It’s an exciting time for independent contractors in the home services trades – and that optimism is in the air. It was all around us at Super Meeting in Denver last month. Ask me next year how we’ve evolved in this space – that could be the focus of an entire Q&A. 

PHCPPros: What did this decision teach you about leadership that you didn’t know before?

Scadden: It gave me the opportunity to live our mission and guiding principles. These foundational principles of a business are leveraged in every decision we make, but this one was intertwined, sensitive, and was a first for our organization. I realized something I always knew and now hold closer than ever. Be clear in your values and principles and decisions are relatively easy to make, how you do it is where you earn your leadership stripes. 

Nexstar Network Hosts Annual Super Meeting

Hundreds of Nexstar members and strategic partners gathered for Nexstar Network’s annual Super Meeting, held Sept. 29–Oct. 3, at the Gaylord Rockies Resort & Convention Center in Aurora, Colorado. Over five days, attendees reunited with their coaches and one another, attended breakout trainings, and participated in a variety of networking events — all designed to help business owners in the trades gain a competitive edge, optimize their operations, and reach their goals with confidence.

The theme of this year’s event, “Own Your Market: Stand Out, Scale Up and Succeed,” was reflected in every aspect of the experience. From the high-energy Welcome Reception to the packed two-day Strategic Partner Tradeshow, members explored new tools, technologies and strategies to elevate their businesses. Breakout sessions led by Nexstar coaches and trainers focused on leadership, operational excellence, marketing, and emerging tech, including artificial intelligence.

One of the most talked-about highlights was the speaker lineup, which featured actor, entrepreneur, and philanthropist Ryan Reynolds, whose insights on branding and storytelling captivated the audience. Other keynote speakers — including Former Commander of USS Benfold and author of the NYT-bestselling book It’s Your Ship, Mike Abrashoff — brought expertise in business strategy, economic forecasting, and workplace culture, offering attendees a wide range of perspectives and actionable takeaways.

New this year were onsite podcast recordings, which gave members a chance to share their stories and hear from industry leaders in real time. Dedicated coach and trainer connection rooms provided members with personalized guidance, while social events like speed networking and the Women of Nexstar reception helped foster lasting relationships.

As usual, Nexstar — a member-owned company — held its Annual Meeting, where members reviewed Nexstar’s year and officially welcomed new Board of Directors Chair Claire Ferrara of Standard Heating & Air Conditioning. New Board Directors include Chris Parham of Parham Heating, Cooling, Plumbing & Electric; Brian Sloan of TR Miller; and Lauren Martin of Seaside Plumbing. Mark Paup of Golden Rule will serve as vice chair; Ted Fox of Fox Plumbing - Heating - Cooling - Electrical will serve as secretary; and Chris Hoffmann of Hoffmann Brothers Heating, Air Conditioning, Plumbing & Electric will serve as treasurer.

The 2026 Super Meeting will be held, Sept. 15-18 in San Antonio.