The HVAC acquisition trend continues

October 2, 2023

The HVAC acquisition trend continues

Getty Images

Southern Home Services announced the acquisition of Presidential Heating & Air Conditioning (MD), and Tucker Hill Air, Plumbing, & Electric revealed that their 2024 strategy revolves around acquisitions.

  • Southern, now operating in 11 states, targets residential-focused companies with revenues from $3m to $50m.
  • Tucker Hill, based in AZ, will target companies with revenues from $1m to $20m.

Interestingly, both companies are steering clear of businesses with over 10% exposure to new construction.

What’s happening: It’s fair to assume that acquisitions will continue. Scaled players, including private equity groups, recognize the structural advantages of HVAC — recession resilience, an aging housing stock, recurring maintenance revenue — and are moving fast to capitalize on them.

Insight: As these companies make acquisitions, they gain scale. And with scale, comes advantages:

  • Purchasing power increases, making it easier to negotiate better prices from suppliers.
  • Shared infrastructure across portfolio companies — accounting, operations, payroll systems — saves back office time and money.
  • Large datasets allow them to optimize sales and marketing, and adjust spending in real time to the best-performing channels.
  • Hefty balance sheets enable investments in employee retention, including superior benefits packages and technology so technicians can focus on their craft, not follow-ups.

Keep reading

Home services startup Avoca lands investment, officially launches

Home services startup Avoca lands investment, officially launches

The company has struck partnerships with ServiceTitan, Nexstar, and Home Service Freedom, and has customers across the U.S.

Merger forms major Midwest HVAC distributor

Merger forms major Midwest HVAC distributor

Two distributors last week announced a merger, forming the Midwest's largest independent wholesaler of Johnson Controls equipment

Haller Enterprises president on shifting technicians across divisions

Haller Enterprises president on shifting technicians across divisions

A conversation about shifting technicians across residential and commercial divisions, the org chart that supports the model, and more