Modern PE-Backed Consolidators Building Hybrid Models

Current large consolidators of HVAC/R companies are described as using a hybrid business model, acquiring smaller firms outright but also subcontracting to quality-focused smaller firms to provide revenue streams and business mentorship.

“Another difference I see with these new firms is the formation of something of a hybrid business model more than a conglomerate of companies. Yes, they do purchase smaller firms outright from time to time, but I have noticed that they have learned that simply finding a smaller firm in the market that is known for its quality and integrity and then essentially sub-contracting to them works just as well.”

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