Page 4 - Climate Control News magazine Dec-Jan 2023

Editorial
Betting on HVACR in 2023
Climate Control News
EDITOR
Sandra Rossi Ph: (02) 9213 8277 sandrarossi@yaffa.com.au
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THE HIGH NUMBER
OF MERGERS AND ACQUISITIONS THAT HAVE TAKEN PLACE
IN THE HVACR INDUSTRY THIS YEAR
IS WITHOUT PRECEDENT.
Sandra Rossi – Editor
ACCORDING TO INVESTMENT advisory firm, Capstone Partners, this high level of activity is set to continue in 2023.
Capstone said the HVACR marketplace is highly fragmented presenting plenty of consolida- tion opportunities.
It’s a ripe market for ‘acquirers’ on the hunt for targets to enhance scale and geographic reach.
With more private equity firms expected to bid in this space, we could see HVACR join the cool kids and finally get some of the attention the industry deserves.
The big players in our industry are already working to create one stop shops by adding products and services across the HVACR platform.
It isn’t unusual today to have a single supplier combining mechanical, plumbing, electrical and fire services to increase the product mix and gen- erate more recurring revenue.
According to M&A advisory firm, the Dak Group, transactions in the HVACR market aver- aged about 50 a year in 2019 and 2020.
This figure doubled in 2021 and continued to climb in 2022.
Moreover, the Dak Group said about 70 per cent of transactions involved private equity firms seek- ing to invest in the growing HVACR market.
The remaining 30 per cent were strategic pur- chases by HVACR-related companies.
This is an interesting trend considering the cur- rent economic environment. Global banks are avoiding risk at all costs but HVACR is clearly an attractive bet.
Let’s hope that HVACR continues to attract all the right attention in the new year.✺
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