PE Platform Exit Strategy and Returns

PE sponsors aim to build HVAC platforms to $20-40M in revenue over 3-5 years, then sell to larger consolidators or strategic buyers, potentially tripling their equity investment while retaining upside.

“The magic moment comes around year three to five. The platform is now a $20–$40 million company with improving margins and a proven M&A strategy. At that point, the platform is either sold to a larger consolidator (a bigger PE firm or a”

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