Private investment groups that raise money to acquire companies or take a majority stake in businesses, better known as "Private Equity" (PE) firms, have led to a major shift in how HVAC contractors conduct business. "Apex Service Partners," "Wrench Group," and "Hidden Harbor Capital Partners" are investment groups that are actively buying ownership of HVAC businesses in the state of Georgia. It's happening in Metro Atlanta where some of the largest HVAC contractors in the Southeast call home and it's happening in Middle, Georgia where smaller contractors have operated for decades. Some PE firms acquire companies with the intent to create operational efficiencies, increase revenue, decrease costs, then sell them to another buyer, while other PE firms take a longer-term approach of growing the business over time. Some PE firms repackage HVAC companies by adding additional services, like plumbing and electrical. Other PE firms take a more hands-off approach, allowing the company to continue operating similarly to how it was before acquisition. They choose to operate in different ways, but there's one goal they all have in common – profitability.

There are many reasons why an HVAC contractor would decide to sell ownership and allow a PE firm to take control of their business. Increased cash flow for company assets, like service trucks, buildings, and inventory can help a business remain competitive in the market, while a national marketing budget can lead to increased sales opportunities. Sometimes an owner wants to retire and is looking for a succession plan. In other cases, HVAC companies are looking for more buying power related to their equipment or parts costs, which PE firms can offer by negotiating rebates and special price quotations with HVAC distributors. Whatever the case may be, PE firms are becoming increasingly active in the HVAC industry, especially in Middle, Ga. The question is, why?

"It's all about the money." A common phrase that stands the test of time and is relatable to just about any industry, job, venture, good, or service. Remember, PE firms are investment agencies. In order for them to sustain, they must make money, just like any other for-profit business in America. Independently owned HVAC companies in Middle, Ga are a top target for PE firms, mainly due to availability. There are over 1,000 registered HVAC contractors in the greater Warner Robins area. Some of these are small, one person, outfits while others employ upwards of 100 people. Some have been around for over 75 years while others have started within the last five years. PE firms often look for companies with a track record of success and after acquiring them, will leave the original business name in place to maintain a local feel and positive customer sentiment. Changes happening behind the scenes don't always show in public, but other times they do, in both positive and negative ways. Both of which depend on the perspective of the customer.

The customer is the one that gets to choose who they do business with and who they give their business to. Whether it be a residential homeowner, a local small business owner, a non-profit entity, a home builder, or a corporate chain, the customer is the most important aspect of how HVAC contractors sustain business because they get to determine who their hard-earned dollars go to when they need HVAC work done. Customer values range from price to quality, to availability, to convenience, and sometimes, to ownership. Sometimes, maybe more frequently in Middle Ga than in larger North Ga cities, familiarity means more to customers than anything else. After all, there is something to be said for "it's all about who you know." Sometimes those you know are able to do things for you that others simply can't, or won't.

There is value in having a strong, financially backed, business partner and there is value in maintaining an independently owned structure. At Speir Heating & Air we have been independently and family-owned since 1946. We strive to dedicate more effort to the quality of our service than to the quantity of jobs we turn. We operate with integrity and conduct business respectfully because it's our last name on the line. We know change is inevitable, but we also know we didn't reach a fourth generation, sustaining 80 years of independently owned business, without building a community in Middle Georgia. To have community, you must be community. We believe that if we invest in you, you will invest in us, and that's something we can both be proud of.