# How Private Equity Is Buying Up HVAC Companies

Page: https://stenobird.com/podcast/the-buyout-show-with-fexingo-private-equity-roll-ups-and-business-acquisitions-7871630/how-private-equity-is-buying-up-hvac-companies-2
Text version: https://stenobird.com/podcast/the-buyout-show-with-fexingo-private-equity-roll-ups-and-business-acquisitions-7871630/how-private-equity-is-buying-up-hvac-companies-2.md
Podcast: [The Buyout Show with Fexingo: Private Equity, Roll-Ups, and Business Acquisitions](https://stenobird.com/podcast/the-buyout-show-with-fexingo-private-equity-roll-ups-and-business-acquisitions-7871630)
Published: 2026-07-12T04:41:28+00:00
Episode link: https://audio.fexingo.com/business/the-buyout-show/episode-0109.mp3
Audio file: https://audio.fexingo.com/business/the-buyout-show/episode-0109.mp3
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JSON: https://stenobird.com/v1/public/podcasts/the-buyout-show-with-fexingo-private-equity-roll-ups-and-business-acquisitions-7871630/episodes/how-private-equity-is-buying-up-hvac-companies-2
Duration seconds: 506

## Resource

In this episode of The Buyout Show, Lucas and Luna break down the private equity roll-up wave in the HVAC industry. With over 10,000 small mom-and-pop contractors across the U.S., PE firms are consolidating them into regional platforms like Service Champions and ARS/Rescue Rooter. They discuss the economics of the 'recurring service revenue' model, how multiples have climbed from 4x to 8x EBITDA over the past decade, and why the fragmentation of the trades makes HVAC a perfect target for roll-ups. Lucas explains the two acquisition strategies: 'tuck-in' versus 'platform' deals, and Luna questions whether consolidation actually raises prices for homeowners. They also touch on the role of technology in replacing truck rolls with diagnostics, and whether the 60% gross margin on service contracts is sustainable. A specific look at how your heating bill is now tied to Wall Street. #PrivateEquity #HVAC #RollUps #BusinessAcquisitions #ServiceChampions #ARSRescueRooter #EBITDA #Consolidation #TuckInAcquisitions #PlatformDeals #RecurringRevenue #Trades #Business #Finance #FexingoBusiness #BusinessPodcast #TheBuyoutShow #Investing Keep every episode free: buymeacoffee.com/fexingo

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