PE buyers misjudged HVAC as recurring revenue

Operators speculate that PE shops bought seasonal HVAC/plumbing/electrical businesses assuming membership programs made revenue recurring, then underinvested in marketing, contributing to post-acquisition decline.

“they bought these highly seasonal, I am seeing a lot in plumbing, but I'm seeing this most in HVAC and electric where like they bought these businesses and they thought that it was recurring because they had a membership of some type and they thought that meant they didn't have to market.”

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