Private Equity Leads Residential Services Acquisitions in 2026
USA: Private equity firms accounted for 60.5% of US residential services acquisitions announced or completed through 27 July 2026, according to Capstone Partners. The market recorded 223 transactions, down from 257 during the same period in 2025.
HVAC, plumbing and electrical businesses represented 19.3% of deal activity. Private equity-backed buyers completed 27 of the segment’s 43 transactions. Investor interest was supported by recurring service revenue, demand for essential services and membership-based business models.
However, technician shortages remain a constraint. HVAC labour supply met 63.8% of demand in 2024 and is projected to cover 62.9% by 2029. Labour shortages are increasing wage and retention costs while limiting service capacity. Buyers are therefore placing greater emphasis on workforce training, employee retention, recurring customer relationships and internal operating systems when assessing acquisition targets.
Source: Contracting Business
