HVAC vs plumbing vs electrical vs roofing?

HVAC is the flagship rollup category (largest average ticket, recurring maintenance, financing attach) — Apex, Wrench, Sila, Redwood core. Plumbing + electrical are HVAC adjacencies (cross-sell to HVAC customer base). Roofing (Legacy, Rising Point) has storm-driven cyclicality + higher ticket but weaker recurring revenue. Pest is a separate thesis (Rollins, Rentokil-Terminix, Anticimex, FieldRoutes-ServiceTitan). Water treatment, garage door, landscaping, pool, restoration are smaller adjacent verticals.

How do you win seller trust?

Roll-forward equity 20-40% of purchase price + 3-5 year earnout tied to same-store growth + brand-retention (keep local name for 12-24 months) + tech investment + membership/marketing lift proven to seller peers. Nexstar Network + Service Nation + Blue Collar Roundtable + CEO Warrior + Power Selling Pros seller networks are the primary sourcing channel.

PE-to-PE recap at 12-18x EBITDA for $50M+ EBITDA platforms (Apex Alpine→Morgan Stanley 2024 precedent, Authority Brands Apax→PSP precedent). Strategic acquisition by HVAC OEM (Carrier, Trane, Lennox, Rheem, Daikin), distribution (Watsco, Ferguson, ABC Supply, Sherwin-Williams), home services aggregator (Rollins, ServiceMaster, Rentokil, Anticimex), or franchisor (Authority Brands, Neighborly Brands-Dwyer Group-KKR, Premium Service Brands). IPO possible for $100M+ EBITDA platforms (ServiceMaster, Rollins, Rentokil precedent).

Home Services Rollup Fundraising Guide (2026)

How HVAC, plumbing, electrical, roofing and pest rollup platforms raise equity and debt in 2026 alongside Apex, Wrench Group, Redwood Services and Sila.

Raising Capital for Home Services Rollup Platforms

Home services rollups are the highest-velocity PE thesis 2022-2026: Apex Service Partners (Alpine Investors → Morgan Stanley), Wrench Group (Leonard Green), Redwood Services (Redwood Capital), Sila Services (Morgan Stanley Capital Partners), Blueprint Home Services (Trilantic), Southern Home Services (Peak Rock Capital), Rising Point Capital, Turnpoint Services (Gryphon), Service Champions (Odyssey), Legacy Service Partners (Gridiron), Best Home Services (Bregal Sagemount), Refined Capital Group, Wilson Companies, Any Hour Services (Sun Capital), Woodmen 20-20-20, Authority Brands (Apax → PSP). Investors want disciplined M&A + integration + technician retention + repeat-service revenue > 40% — not another 'we'll buy 100 HVAC shops' pitch.

Why 2026 is different

ServiceTitan IPO December 2024 validated the underlying tech stack ($9B+ market cap). PE dry powder $2T+ chasing recession-resistant services. Rollup multiples 8-12x entry / 12-18x exit for $50M+ EBITDA platforms. Aging tradesperson demographic + private-equity-friendly seller pool (retiring owners). AI voice + Rilla coaching + ServiceTitan Pro Products drive 200-400 bps EBITDA lift post-integration. Investable thesis: disciplined M&A pace (6-12 tuck-ins/year), same-store organic growth > 8%, membership > 25%, repeat revenue > 40%, MSA density > 3 shops per market.

Realistic capital stack

Platform seed: $10-30M sponsor equity + $30-100M debt. Growth: $100-500M equity + $200M-1.5B unitranche + DDTL. Reference: Apex Service Partners (Alpine $500M+ → Morgan Stanley recap $2B+ 2024), Wrench Group (Leonard Green $1B+), Sila Services (Morgan Stanley $500M+), Redwood Services ($500M+), Southern Home Services (Peak Rock $300M+), Blueprint (Trilantic $250M+), Legacy Service Partners (Gridiron $200M+), Any Hour (Sun Capital), Service Champions (Odyssey), Best Home Services (Bregal Sagemount), Turnpoint (Gryphon), Authority Brands (Apax → PSP $1B+ recap). Category funding at all-time high 2025-2026.

Common failure modes

M&A pace too fast for integration capacity (integration debt = margin erosion). Skipping ServiceTitan/FieldEdge standardization at Day-1. Ignoring technician retention (5-10% attrition destroys platform). Membership penetration < 15% (repeat revenue thesis breaks). Geographic sprawl without MSA density. Owner earnout misalignment (60%+ walk within 24 months if wrong). Credit facility not sized for M&A pipeline (dry powder starved).

Frequently asked questions

HVAC vs plumbing vs electrical vs roofing?: HVAC is the flagship rollup category (largest average ticket, recurring maintenance, financing attach) — Apex, Wrench, Sila, Redwood core. Plumbing + electrical are HVAC adjacencies (cross-sell to HVAC customer base). Roofing (Legacy, Rising Point) has storm-driven cyclicality + higher ticket but weaker recurring revenue. Pest is a separate thesis (Rollins, Rentokil-Terminix, Anticimex, FieldRoutes-ServiceTitan). Water treatment, garage door, landscaping, pool, restoration are smaller adjacent verticals.
How do you win seller trust?: Roll-forward equity 20-40% of purchase price + 3-5 year earnout tied to same-store growth + brand-retention (keep local name for 12-24 months) + tech investment + membership/marketing lift proven to seller peers. Nexstar Network + Service Nation + Blue Collar Roundtable + CEO Warrior + Power Selling Pros seller networks are the primary sourcing channel.
Exit paths?: PE-to-PE recap at 12-18x EBITDA for $50M+ EBITDA platforms (Apex Alpine→Morgan Stanley 2024 precedent, Authority Brands Apax→PSP precedent). Strategic acquisition by HVAC OEM (Carrier, Trane, Lennox, Rheem, Daikin), distribution (Watsco, Ferguson, ABC Supply, Sherwin-Williams), home services aggregator (Rollins, ServiceMaster, Rentokil, Anticimex), or franchisor (Authority Brands, Neighborly Brands-Dwyer Group-KKR, Premium Service Brands). IPO possible for $100M+ EBITDA platforms (ServiceMaster, Rollins, Rentokil precedent).

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