How Private Equity Is Buying Up HVAC and Plumbing Companies

Episode 35 of Private Equity Conversations digs into the roll-up play in HVAC and plumbing — a fragmented $200 billion industry where private equity has acquired over 600 companies in the last five years. Lucas and Luna examine the model: why aggregators like ServiceTitan's backers are buying mom-and-pop shops, how multiple compression works when you consolidate at 8x EBITDA and exit at 12x, and what happens when the local plumber you've called for a decade gets bought by a fund. Specific example: the acquisition of ARS/Rescue Rooter by Berkshire Partners and the Ontario Teachers' Pension Plan in 2022 for $2.2 billion. Also: how the post-COVID housing boom and aging housing stock (over 60% of US homes built before 1980) fuel the thesis. A critical look at whether these deals actually improve service or just consolidate market share. #PrivateEquity #HVAC #Plumbing #RollUp #ServiceTitan #BerkshirePartners #OntarioTeachers #ARSRescueRooter #HomeServices #Buyouts #Consolidation #Business #Finance #MergersAndAcquisitions #FexingoBusiness #BusinessPodcast #PrivateEquityConversations #Episode35 Keep every episode free: buymeacoffee.com/fexingo