PE firms increasingly involved in HVAC via leveraged buyouts of a fragmented industry

Advisors describe a continuing uptick in HVAC acquisitions: PE firms pursuing leveraged buyouts for recession-resilient cash flow, and investors rolling up a fragmented industry of small, often retirement-age-owned 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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