A podcast-style YouTube video (by Jim Johnson) discussing the pros and cons of selling roofing businesses to private equity firms. The speaker warns that PE buyers are sales-focused, that poorly run acquired companies can scare capital and depress valuation multiples (example given from the HVAC sector), and advises sellers to consult multiple buyers/experts before proceeding.
When some of these companies, these PE firms are now that are acquiring businesses don't do well, and they start realizing that these 2 million EBITDA businesses aren't the most sophisticated roofing companies or companies in the world, there'll be some losers. And losers scare capital. And so when there's losers, people might get afraid. And then, and then the multiples start dipping down. We're seeing that in the H Vac space right now. So, so look, there's pros and cons at both. But what I would say, what I would say is this, if you are considering it, certainly talk to more than one, you know, one or two people. And these are sales guys. These PE guys are salespeople. No, no doubt about it. Okay. They're going to tell you all, hey, look, what I, this is I, I like to say.
