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00:00:01
PE is coming for us all!
10 Plays2 days ago
Whatcha gonna do??
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Transcript
Rise of Private Equity in HVAC and Plumbing
00:00:00
Baker Plbg
Listen, it's true. Private equity is taking ah shot at the trades, specifically the HVAC plumbing trades. And from what I can tell, here's a list of the people that are companies that are actually backed or owned by private equity. There are a couple of big firms. There's Griffin Investors, Birch Hill Capital, Alfie Capital, Lynx,
00:00:27
Baker Plbg
Equity link Limited. Those are sort of the big ones that are making plays here and in in Canada.
Major Players and Their Investments
00:00:35
Baker Plbg
Bellya Brothers out of Toronto, Ontario is backed by private equity. Knight Plumbing and Heating in Calgary, which is surprising to me. Romanek Heating and Air Conditioning in Edmonton. Comfort Masters in Ontario.
00:00:51
Baker Plbg
couple more here. Service Experts, as I talked about the other day, is actually owned by... Brookfield, which is A1 Chesney's, McKinley Heating, Rob's, Albertan.
00:01:03
Baker Plbg
Tell me that's not done on purpose. Winnipeg Supply. One that I was surprised about that we sort of bump heads with quite a bit is GDI Integrated Facility Services, was which is basically Ainsworth in indicate Incorporated and Airtron Canada have entered into an agreement with to be taken by private equity by Birch Hill equity, which is surprising to me.
00:01:28
Baker Plbg
The Right Time group of companies, which is ah so like it's many levels deep. So if you find Right Time, it's actually owned by Griffin. If you find Enercare, it's actually owned by ah Brookfield. Service Experts, which they break out, is actually owned by Brookfield as well.
Shift to Subscription-Based Models
00:01:45
Baker Plbg
And one of the things that going to put right here somewhere is that there's a shift.
00:01:51
Baker Plbg
Part of the reason that they're doing this is they're shifting towards a subscription-based model for heating and cooling, which is emerging in 2026, where customers pay a monthly fee for equipment, installation, and ongoing maintenance.
00:02:06
Baker Plbg
Listen, you you will own nothing and be happy about it.
Advisory on Choosing Providers
00:02:11
Baker Plbg
You, us all need to be aware of who we are buying our products and services from and if it's actually in our best interests or we're working against ourselves. I don't know what the answer to that is. i i get a call five or six times a year from private equity wondering if I would be interested in selling baker plumbing to them.
00:02:33
Baker Plbg
The general... framework is of that because I've had those discussions is I would retain 10 to 20% of my company, retain the company name and they would just take it over and I would be there for a couple of years and then I'm out the back door.
00:02:49
Baker Plbg
That is not my plan. That may be the boys plan. I don't know. It's up to them. My thoughts, not yours. Buyer beware.