Equity Funding for HVAC/Plumbing Rollup in Texas (Deals Under LOI)

December 27, 2024

by a searcher from The University of Chicago - Booth School of Business in San Francisco, CA, USA

Hi everyone,

I am advising a tech-enabled residential services rollup with a strategic focus on Texas and the Southwest.

The platform has built a strong foundation by completing and integrating nine acquisitions in Texas over the past 18 months. These acquisitions consist of companies with strong customer loyalty and well-established brand presence in their respective markets.

The services portfolio focuses on HVAC and plumbing, including installation and maintenance, and caters to a diverse customer base that is over 90% residential and 10% light commercial. The Company’s operations are supported by a team of over 60 employees and a fleet of 40+ service vehicles strategically deployed across Texas.

The Company is now at an inflection point in its journey, with a robust and actionable pipeline of acquisitions representing up to an additional $40+ million in revenue and approximately $7 million in EBITDA.

The next three deals will require an equity infusion of around $4m. Does anyone know of any equity investors who like home services rollups? I'd love to connect

Reply by an investor
from University of Pennsylvania in New York, NY, USA

Hi Carlos, I would be interested in learning more. We are a growth equity firm (investing from our 4th fund) / SBIC that has backed founder-led and bootstrapped business services companies at the lower end of the middle market (i.e. generating $5M to $50M in revenues) for over 35 years - especially those pursuing buy-and-build strategies. We primarily invest $5M to $15M for minority ownership stakes, and play an active role in helping our portcos originate and execute acquisitions, so I'd welcome the chance to explore whether we could be helpful.

Reply by a searcher
from Texas A&M University in Grapevine, TX, USA

^redacted‌ I may be a resource for you. I have multiple relationships with equity investors (90% are in Texas). Would love to have you schedule a call with me. My calendar is accessible at www.calendly.com/k5consulting and my email is redacted I look forward to talking with you.

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