PE-driven HVAC consolidation continues amid rising interest rates

Private equity firms are increasingly involved in HVAC via leveraged buyouts because the industry is recession-resilient and cash-generative; consolidators are rolling up a fragmented industry of small businesses to create economies of scale.

“Private equity firms have gotten more and more involved with the HVAC industry through leveraged buyouts because it’s not only recession resilient, but generates an attractive amount of cash flow, said Polk.”

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