Happy Friday and thanks to the 51 new subscribers who joined this last week. We’re the only news source tracking lower middle market M&A. Our goal is to keep you up to date on the latest information/transactions in the market and highlight market participants that are doing interesting things in the space.
This Week’s Feature
Last week we featured a technology and software-focused, sell-side advisory group. This week we’re staying on the sell-side but jumping to the opposite end of the industry spectrum. SF&P Advisors (SF&P) is a full-service investment bank for residential, HVAC, and plumbing M&A. With over 20 years of specialized experience in the HVAC, plumbing, and mechanical/commercial contractor industry, SF&P knows the space as well as any group in the market. The firm is led by President, Fred Silberstein who has performed more than 150 transactions, 90% of which have been in the air conditioning and plumbing industry.
Historically, the M&A market in the HVAC and contracting industry was dominated by larger strategics with smaller deals being driven by local competitors. However, over the last five to seven years, there’s been an increased amount of interest from private equity as the firms look to go further down market. With a lot of fragmentation, the ability to scale, current market dynamics, and the fact that HVAC and home services aren’t going anywhere anytime soon, multiples for contractors keep going up and up. Of course, not all HVAC companies are created the same, but in this current environment, it’s not unheard of for an HVAC company to sell at a 7-9x multiple.
With transactions picking up, SF&P’s expertise is in high demand, but you’ll still receive a professional and personal experience when partnering with SF&P. In fact, SF&P’s size makes it unique among the sell-side advisory world. When working with most investment banks on a sub $75MM deal, a junior associate would often run point on the transaction. However, with SF&P, you’ll always work directly with a principal. And these principals have over $1.6 billion transactions from 300+ companies under their belt.
SF&P Advisors is based in Boca Raton, Florida. In addition to offering M&A advisory services, the firm also specializes in business valuation, accounting, research, due diligence, and financial analysis. You can find additional information by visiting the links below
SF&P website link
Featured transactions link
How to Sell Your Service Business Podcast link
Home Services Podcast link
This Week’s LMM Activity
ScaleCo-backed bollard cover and traffic safety products manufacturer, Innoplast, acquires American Sign Products Link
ICV Partners portco Cherry Tree acquires dental practice in Illinois Link
Clarion Capital Partners invests in DTC auto finance co., OpenRoad Lending Link
Tower Arch Capital-backed Creedence Energy Services, invests in Magna Energy Services Link
Grey Mountain Partners sells Dimex to Westlake Chemical Corporation Link
May River Capital completes sale of mission-critical valve and electromechanical actuator manufacturer to Arcline Investment Management Link
Latticework Capital invests in healthcare project management company, Healthcare Building Solutions Link
Align Capital Partners sells pool and spa water filtration manufacturer to Pentair Link
Platinum Equity acquires Petmate Link
Boyne Capital makes new platform investment in Sonic Systems, a leading provider of mission-critical support to the nuclear power industry Link
Boyne Capital also invests in A&A Global Imports, a supplier of packaging materials to the medical and recreational cannabis industry Link
Kinderhook Industries sells clinical trial recruitment and retention co., to Syneos Health Link
Silver Oak Services Partners invests in franchisor of automotive repair shops Link
Fulcrum Capital Partners completes first close of Fund VI Link
Diversis Capital completes $675mm Fund II Link
The future of logistics Link
LMM-focused firm, P10, readies for NYSE listings Link
New evergreen investment firm, Endurance Partners, plans to own portco’s for at least a decade and use less leverage Link
Bridgepoint’s radiology M&A quarterly update Link