Key Takeaways
- • Private equity firms accounted for 60.5% of US residential services acquisitions announced or completed through 27 July 2026, according to Capstone Partners.
- • The market recorded 223 transactions in the period, down from 257 during the same period in 2025.
- • HVAC, plumbing and electrical businesses represented 19.3% of deal activity, with PE-backed buyers completing 27 of the segment's 43 transactions.
- • Technician shortages constrain the sector: HVAC labour supply met 63.8% of demand in 2024 and is projected to cover 62.9% by 2029.
- • Buyers are increasingly prioritizing workforce training, employee retention, recurring customer relationships and internal operating systems when evaluating targets.
Summary
Private equity firms accounted for 60.5% of US residential services acquisitions announced or completed through 27 July 2026, according to Capstone Partners, as reported by Contracting Business. The market recorded 223 transactions over the period, down from 257 during the same period in 2025, indicating a slowdown in deal count year over year while private equity retained its leading role among buyers.
HVAC, plumbing and electrical businesses represented 19.3% of deal activity in the segment. Within this subsector, private equity-backed buyers completed 27 of 43 transactions. Investor interest has been supported by recurring service revenue, demand for essential services and membership-based business models, which offer predictable cash flows that appeal to institutional capital.
Labour constraints remain the principal operational risk. HVAC labour supply met 63.8% of demand in 2024 and is projected to cover 62.9% by 2029, implying a widening gap. Labour shortages are raising wage and retention costs and limiting service capacity. As a result, buyers are placing greater emphasis on workforce training, employee retention, recurring customer relationships and internal operating systems when assessing acquisition targets, shifting diligence attention toward operational scalability alongside headline growth.
HVAC, plumbing and electrical businesses represented 19.3% of deal activity in the segment. Within this subsector, private equity-backed buyers completed 27 of 43 transactions. Investor interest has been supported by recurring service revenue, demand for essential services and membership-based business models, which offer predictable cash flows that appeal to institutional capital.
Labour constraints remain the principal operational risk. HVAC labour supply met 63.8% of demand in 2024 and is projected to cover 62.9% by 2029, implying a widening gap. Labour shortages are raising wage and retention costs and limiting service capacity. As a result, buyers are placing greater emphasis on workforce training, employee retention, recurring customer relationships and internal operating systems when assessing acquisition targets, shifting diligence attention toward operational scalability alongside headline growth.
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