10/18/2024
... this shift by private equity firms is fundamentally altering the ownership landscape of these businesses. Traditionally, these companies were often passed down through family lines or to long-term employees. However, the current trend sees many owners choosing to sell to private equity firms instead. These sales frequently result in substantial payouts, often reaching into the millions of dollars, providing a lucrative exit strategy that wasn't available to previous generations of trade business owners ... one major concern is the potential loss of local ownership and control, as decision-making shifts to distant investors primarily focused on financial returns. This can lead to a more profit-driven approach that may prioritize cost-cutting over long-term sustainability or quality of service. Employees may face increased job insecurity, reduced benefits or more demanding work conditions as the new owners seek to maximize efficiency and profitability. The traditional career path of apprenticing and eventually buying into or taking over a small business becomes less attainable, limiting opportunities for skilled workers to become owners themselves ...
Private equity firms are targeting HVAC, plumbing, and electrical companies for consolidation, reshaping the skilled trades landscape. Here's how it's impacting the industry.
