Big PE is thinking small. No, really.
According to WSJ, large private equity firms are turning to bite-size deals—trades businesses, small manufacturers, and regional service firms—because they’re stable, profitable, and wildly under-optimized. ????
What’s fueling this shift?
– ???? Rising interest rates = less appetite for big, risky bets
– ???? Small deals = faster to close, easier to scale
– ???? Recurring revenue = reliable cash flow
The average trade business with $2M–$10M in revenue is now prime real estate for private equity. If you’re in HVAC, plumbing, electrical, or a related field—you’re not just a small business. You’re a small business with serious leverage.
Moral of the story? You don’t need to be huge to get bought. You just need to be solid, stable, and sellable.