The year saw tremendous amount of in the industry as equity investors continue to back the acquisitions of HVAC contractors.
SF&P Advisors, brokerage for HVAC contractors, oversaw 46 deals between contractors and PE firms last year, with 23 coming in the quarter.
The competition means that the amounts offered to HVAC contractors keep growing.
After the deal closes, you have to live with these folks, said Fred Silberstein, president of SF&P..
The brothers eventually sold their company to PE-backed platform.. were buying, and they did not understand operations.
Many HVAC contractors point to the craze of the 0s, which ended with deals unwinding and buyers selling back companies at discount.
Ken Goodrich, CEO of Goettl Air Conditioning & Plumbing, PE-backed HVAC firm, said collapse of that scale is unlikely..
The trend started in 2015, with the creation of The Wrench Group, Silberstein said.
Silberstein said that given the volume of activity, it's some will fail, and that could signal the market to back off from HVAC purchases..
So far, there has been buyer for every HVAC company, such as Partners Group buying Reedy Industries from Audax Private Equity.
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