M&A: Snapping up the deals private equity groups ignore

摘要

The influx of private equity groups into the heating and airconditioning space has resulted in inflated transaction prices based onexcessive multiples, Patrick Lange of Business Modification Group, toldattendees of the Eastern Energy Expo on Tuesday during a session ongrowing a heating and air business through acquisitions.Lange said small to medium marketers who compete with PE groupsfor acquisitions “will overpay for deals.” Private equity investors goafter larger companies with management in place. “They pay (EBITDA)multiples that an operator wouldn’t pay,” he said.