As residential home services has matured, many acquirers have turned their attention to commercial mechanical, electrical and plumbing contractors. The thesis is simple: commercial buildings need constant maintenance, and facility owners prefer partners who can handle multiple systems.
Service over construction
As with residential trades, buyers pay the most for service-heavy MEP businesses. Planned maintenance agreements, repair work and retrofit projects with existing customers are valued far more highly than bid-based new construction.
Key value drivers
- Service and maintenance contracts with recurring commercial customers.
- Customer diversification across property types such as healthcare, education, industrial and retail.
- Self-performed capabilities across mechanical, electrical and controls.
- Project management systems and dependable estimating.
- Workforce depth, including licensed journeymen and service technicians.
Transaction experience
Companies such as GE Mechanical and Top Notch reflect the kind of skilled trade businesses that acquirers want to build around. Commercial-focused buyers are actively seeking platforms and add-ons in growing metro markets.
What to expect
Commercial MEP processes typically involve more diligence on contracts, backlog and project margins than residential deals. Owners who prepare by separating service and project revenue and documenting their customer relationships tend to see stronger offers.
ALLPRO works on the buy side for some of the best acquirers in the industry, with $1.4B+ in transaction value to date. Sellers never pay a fee. Our job is to match your company with the buyer who values it most.