Owner retirements and PE recapitalizations driving HVAC business transitions

Advisors note many HVAC owners are reaching retirement age and transitioning their businesses, sometimes by selling a majority stake to a private equity partner that funds further acquisitions.

“So if an owner sells … say 70% of the shares and partners with a capital provider, like a private equity firm, then that capital is there to make acquisitions and they can expand at the rate that owner wants to,” Flippen said.”

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