Investors rolling up fragmented HVAC industry to create economies of scale

An advisor characterizes the HVAC acquisition uptick as a classic roll-up: investors combining many small businesses to create economies of scale, with a copycat dynamic as successes prompt others to follow.

“Flippen said the uptick in HVAC acquisitions is a classic one: Investors are looking to take a very fragmented industry made up of small businesses and put them together to create economies of scale. And when one person succeeds, others follow. It’s a sort of copycat phenomenon.”

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