https://www.forbes.com/sites/jackkelly/2024/10/17/private-equity-taking-on-skilled-trades/ Private equity firms have been increasingly targeting skilled trades companies like heating, ventilation and air conditioning (HVAC), plumbing and electrical businesses for acquisition and consolidation in recent years. PE investors have acquired nearly 800 companies in these industries since 2022, reported the Wall Street Journal, citing data from PitchBook. Redwood has acquired 35 companies in the past four years. They range from smaller outfits (such as Rice’s), which Redwood says it buys outright for an average of $1 million, to more sizable companies (such as Rite Way), with an average valuation around $20 million, in which it takes majority stakes.
Private equity firms have been increasingly targeting skilled trades companies like heating, ventilation and air conditioning (HVAC), plumbing and electrical businesses for acquisition and consolidation in recent years. PE investors have acquired nearly 800 companies in these industries since 2022, reported the Wall Street Journal, citing data from PitchBook.
Redwood has acquired 35 companies in the past four years. They range from smaller outfits (such as Rice’s), which Redwood says it buys outright for an average of $1 million, to more sizable companies (such as Rite Way), with an average valuation around $20 million, in which it takes majority stakes.