Thankfully for HVAC, the fact that it has industry helps prevent it from making that mistake..
In the 1990s, this was known as consolidation, and the industry still has the scars to prove it.
More than few of ACCA contractors had completed or were in the process of completing this transaction.
He has been part of his family HVAC business when his sold to utility company in the 1990s.
This time around, they expecting management to stay on for length of time to make sure the issues of the 1990s do not resurface.
The contractor was also very happy with the price he was offered for his company and even more impressed that those doing the buying were keeping more hands-off strategy..
Ted Polk from Capstone Partners remembers the old wave of consolidation, and he is confident the industry has learned its lesson...
From investor's, the fragmentation is attractive because the demand for each business is distinct.
Also, the awareness of energy and the strides the industry has made energy savings also makes the industry attractive.
It's always some variation that the industry is in the middle innings of the mergers and acquisitions activity cycles and there is still in front of it..
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