We’re in the midst of what some in the HVAC industry are calling “The Great Consolidation,” as large companies are buying up smaller companies at a pace not seen since the 1990s. The industry is a prime target for consolidation; there are over 50,000 enterprises in the U.S. alone, most of them smaller companies. The HVAC industry is seeing consolidators invest billions, and many plumbing and electric companies are bringing in HVAC to add to their service offerings.
Deal activity in the HVAC industry is on the rise, driven by increased investment from private equity. According to a September 2021 article in The ACHR NEWS, only approximately 20 M&A transactions were completed in 2011, but in 2019, more than 120 are being done every year. The industry has a proven growth record and appears to be bullet-proof. Sales didn’t shrink during the pandemic — climate control is more important than ever when you’re at home 24/7.