Core Growth Group has released a guide exploring the potential risks of selling an HVAC or plumbing business to a private equity firm. The resource is intended to help owners understand how private equity transactions work, what questions to ask during negotiations, and how different buyer structures can influence the future of a business after a sale.
More information is available at https://coregrowthgroup.com/what-is-the-failure-rate-of-private-equity
The resource comes as private equity activity continues to influence the home services sector. According to S&P Global Market Intelligence, private equity-backed companies accounted for a record 110 bankruptcy filings in 2024, a 15% increase from the previous year. While many private equity investments are successful, the trend highlights why business owners increasingly want to understand the risks.
The guide explains that private equity buyers often operate under investment timelines that differ from those of strategic buyers or owner-operators. These firms may focus on growth initiatives, operational changes, acquisitions, or future resale opportunities to increase company value over a defined holding period.
The resource also examines several factors owners may wish to discuss before signing an agreement. Debt structures, investment horizons, transition expectations, management involvement, and future plans for employees and operations can all affect how a business evolves after a transaction. Understanding these areas early can help owners make more informed decisions and avoid surprises during the sale process.
Core Growth Group developed the guide to help HVAC and plumbing owners evaluate potential buyers more critically and understand the trade-offs behind different acquisition offers. By understanding how private equity firms, strategic buyers, and operator-buyers approach transactions, owners can make more informed decisions about valuation, deal structure, transition expectations, and the future direction of the business after a sale.
The guide also reinforces a broader idea discussed throughout Core Growth Group's educational resources: the strongest exits often begin long before a business goes to market. Owners who spend time improving operations, strengthening financial performance, and reducing owner dependence typically have more options when evaluating future growth opportunities, succession plans, or potential buyers.
Business owners interested in learning more can access the guide and additional resources at https://coregrowthgroup.com/