Why Private Equity Is Chasing Plumbers and Lumber Yards

  • Founder-owned firms make up highest share of PE deals in years
  • Atlanta plumber says daily investor pitches are ‘a nuisance’
John LoudSource: John Loud
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Local plumbers and lumber-yard owners across the US are feeling a bit like tech entrepreneurs of late — juggling multiple offers from private equity-backed firms that increasingly are targeting mom-and-pop businesses.

Wall Street has been buying into fragmented Main Street industries for years, with dental and veterinary practices among the favorite targets. It’s known as the roll-up strategy – and it’s catching a tailwind right now, and expanding rapidly in household services and building materials.