Bridger Pennington warns HVAC business buyers that investment funds can buy competitors and undercut prices to dominate the market. He advises thinking bigger to avoid being outcompeted by well-capitalized rivals.
They're asking, hey, I want to go buy an HVAC business, or I want to go buy— I'm going to buy a couple HVACs and pull them together and grow. And I said, what if someone with a fund comes to your town, buys up all the other HVAC companies, drops their prices for the next year below yours so they suck in your market share and bleed you dry? What are you going to do? And they're like, I don't know, that sounds blah blah blah. I'm like, might be right or wrong, you might be mad about that, but that totally can happen in this marketplace. You need to think and play bigger or else you might be subject to someone who did think and play bigger.