Why They Are So Attractive Today?

Investors and private equity firms are attracted to the MEP (Mechanical, Electric and Plumbing) industries because of its rapidly growing sector, recurring revenues and opportunity to multiply their investment. New technologies are emerging revolutionizing the industry, making it even more attractive to investors.

As part of the construction services sector, it’s an essential service with growing demand. Many of these businesses are locally-owned and operated and are able to shift customer segments as the economy shifts. When residential services slow, non-residential services ramp up closely followed by commercial and industrial services. Somebody has to keep the lights on, water flowing and air moving.

It continues to be a seller’s market as they’re benefiting from increasing margins and growing backlogs, and the financial and strategic buyers have access to capital and a strong desire to grow through acquisitions.

MEP services regardless of the channels served will continue to be in demand. They’re essential to homes and businesses, new technologies will drive additional growth and there are too many small-medium contractors in every major market that could immediately benefit from consolidation.