The Quiet Buyout Boom in the Trades

Over the last five years, private equity (PE) has accelerated its stake in the skilled trades. From HVAC to plumbing and electrical, home service businesses are being rolled up at record pace. If you own or operate a service business, chances are you've already been contacted by an aggregator or PE-backed group.

What's happening isn't a one-off trend. It's a full-blown industry transformation fueled by a unique cocktail: recurring revenue, fragmented ownership, and huge upside from tech modernization.

Why Home Services Are a Prime Target

1. Recurring Revenue Streams

From maintenance memberships to seasonal tune-ups, trades businesses generate predictable, high-margin revenue. This appeals to investors seeking cash flow stability.

2. Fragmented Market = Rollup Opportunity

The U.S. home service market is dominated by independently owned operators. PE firms see an arbitrage play in rolling up dozens of local brands under one unified platform. According to IBISWorld, HVAC services alone account for a $130B+ industry with no dominant national player.

3. Low Tech Adoption = Margin Expansion

Most trades businesses still operate on pen-and-paper or legacy systems. PE sees opportunity in digitizing workflows (CRMs like ServiceTitan or Housecall Pro), which increases productivity and valuation.

Current Landscape (2025): The Big Rollup Players

A handful of major consolidators have emerged:

• Wrench Group – backed by Leonard Green & Partners, operates 20+ brands nationwide

• Apex Service Partners – backed by Alpine Investors, focused on HVAC, plumbing, and electrical

• TurnPoint Services – acquired by OMERS Private Equity, growing aggressively across the Southeast

• Radiant Plumbing & Air – acquired by Aquila Capital Partners, later rolled into larger platforms

Notable M&A Examples:

• In 2023, Wrench Group acquired AB May in Kansas City

• Apex added more than 40 brands between 2022–2024 alone

Sources:
Wrench Group Acquisitions
Apex Service Partners News
PE Hub Coverage

What It Means for Contractors

Valuations have jumped from 3-4x EBITDA to 6-8x (or higher) for well-run service companies. Private equity is willing to pay for operational maturity, customer lists, and strong regional brands. Under PE ownership, companies often face new KPIs, reporting structures, and more centralized decision-making. Some employees thrive with the added structure; others miss the entrepreneurial freedom. As companies grow, some worry that craftsmanship takes a back seat to efficiency. Others argue that scale enables better benefits, training, and tools for techs.

What It Means for Vendors & SaaS Providers

When 20 local shops roll into one PE-backed platform, the new entity negotiates supply contracts differently. This affects everything from HVAC units to uniforms. Software and tools are under scrutiny. Platforms like ServiceTitan, BuildOps, and XOi Technologies are expected to show clear ROI fast. Niche SaaS platforms tailored to HVAC, plumbing, or solar now have larger, tech-savvy customers. Investors are pouring capital into these tools for faster adoption.

Future Outlook: What’s Next?

It hasn’t happened yet, but the race is on. Whoever controls the largest multi-regional platform with tech-enabled service wins access to data, margins, and a dominant brand position. Pest control, insulation, solar roofing, and pool maintenance are starting to see PE interest. Solar + storage is a particularly hot segment due to government incentives and consumer demand. The next wave of PE isn't just about cost cutting. It's about brand-building, employer branding, and customer experience. Think of it as trades meets modern DTC playbook.

Final Thoughts

Whether you're building to sell or staying for the long haul, private equity is changing the rules of the home service industry. It brings capital, structure, and scale—but also demands performance, reporting, and adaptation.

For contractors, it's a wake-up call. For vendors and SaaS, it's the golden era of consolidation. The game is on.