HVAC and Plumbing

searcher profile

December 30, 2019

by a searcher in Branchville, VA 23828, USA

I am looking at industrial and commercial HVAC/plumbing company. Has anyone targeted this industry? What advice would you have for me?

6
23
706
Replies
23
commentor profile
Reply by a searcher
from United States Naval Academy in Fort Worth, TX, USA
Consider geographic location when breaking down the “H” vs the “AC” because inconsistent revenue might be a factor. That will play into obtaining a loan and paying employees during off peak seasons. I’m thinking of Florida and Toronto as examples.
commentor profile
Reply by an investor
from The University of Chicago in Chicago, IL, USA
I don't necessarily disagree with your perspective. My post was attempting to offer insight pertaining to someone soliciting capital to enter the industry from investors not currently involved in the industry. And there is no doubt, raising capital to purchase any business that is predominately linked to new residential construction (production builders, etc.) is very difficult. Concerns relating to the ebb and flow of the residential building cycle alone dramatically reduces the potential investor population. Jason's observation on multiple accretion is spot-on. Professional investors are happy to pay for an opportunity that did not previously exist until others created it or assembled it. For those interested in the strategy (i.e. integrating multiple small acquisitions in to one larger company for exit), I would suggest bringing in a seasoned industry veteran as soon as possible. Don't waste your time reinventing the wheel / somebody else already knows how to do it and their price tag is inexpensive from a broader perspective.
commentor profile
+21 more replies.
Join the discussion