Emery Ellinger was recently interviewed for an article, “Investors Continue to Target HVAC, Plumbing Firms,” published by Business Observer. The article discusses the interest investors have taken in the home services industry, recognizing the value of consolidating multiple firms and creating a diverse portfolio under one corporate entity.
“Here’s what private equity really likes — they like the ‘stickiness’ of the recurring revenue, particularly on the residential side,” says Emery Ellinger, CEO of Aberdeen Advisors Inc., a St. Petersburg-based M&A advisory firm that has handled around 10 acquisitions in the home services industry in recent years. “They like the diverse customer base that HVAC has, and then they can buy all these other companies and come into your house and say, ‘Hey, we do pest control, we do HVAC, we can do your plumbing.’ And they really professionalize, automate and scale these businesses up.”
However, mergers and acquisitions in the space can be frustrating for sellers and buyers who aren’t on the same page about valuation and profitability. Read more about Emery’s insight into M&A deals in the home services industry, and reach out to the Aberdeen team to learn how preparing and working with an Advisor can help sellers reach their goals.