PE 'Second Bite of the Apple' roll-up rationale for HVAC owners

The column explains the PE buy-and-build model: consolidate smaller HVAC businesses into one larger entity, then sell to another financial investor, giving owners a lucrative 'second bite of the apple.'

“Their intention is to consolidate smaller businesses into one larger entity, and then sell the larger company to another financial investor in the future, giving HVAC business owners an opportunity to receive additional sale proceeds in that second transaction. This is known as the “Second Bite of the Apple” and can be quite lucrative”

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