Private Equity Consolidation Trend in HVAC

Private equity firms are actively consolidating the fragmented HVAC industry by bundling contractors together to strip costs, combine resources, and improve capability, leading to increased value. This trend has been ongoing for more than a few years.

“The second reason is the fragmentation of the industry because private equity likes to consolidate. Unlike pest control, where a company like Orkin has a lion’s share of the business, there is not an HVAC company that has a similar market share. The thought process of private equity is to bundle contractors together, strip cost by combining resources, and improve capability, which leads to more value.”

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