© Corey Perrine/Florida Times-Union / USA TODAY NETWORK
(New York, NY) — Private equity firms are scooping up small town HVAC, plumbing and electrical companies, and turning some of their owners into instant millionaires. The equity firms are hoping to profit by running larger, more lucrative operations with branch operations in small towns across the country.
According to data from PitchBook, private-equity investors have purchased roughly 800 HVAC, plumbing and electrical companies since 2022. The strategy: Roll up businesses to create larger players and improve their margins. The P.E. firms add back-office efficiency, managerial know-how, increase marketing efforts and recruiting budgets. Critics say the model leads to higher prices for consumers and less competition, but others say it can improve service quality and boost the bottom line.
