Sponsors that do union deals
Does anyone have any color on shops that are comfortable with union workforce deals? I know names like Blue Wolf do a lot, but curious about others. Especially in multi-trade specialty contractors/industrial service. Does anyone know of some consolidators?
Blue Wolf was the first name I thought of reading the title haha. KPS, but for manufacturing and not services. One Rock and 26North are two others based on a recent deal in the electrical space.
AE Industrial closed one yesterday
Thanks guys. Very helpful so far.
As a sidebar - if you can deal with it, there is a real value play for these union shops imo. You can buy a $9m EBITDA electrical contractor for like 6x
Fully agree. Problem becomes the exit buyer pool. Multiple arbitrage becomes much more difficult when you only have a handful of sponsors on the way out.
Very true. But I am sure at one point someone was rolling up resi HVAC deals and everyone was asking 'so what sponsor is gonna buy this?"!
The biggest bottleneck to scaling a multi-trade platform is labor availability. The hall solves a lot of those constraints if you're willing to be a good partner
@finchbomb69 meant to respond to this directly!
I agree with this. In certain markets there are a lot of benefits related to skilled labor through unions. Certain macro trends are not going anywhere even with the new administration and best to believe unions will continue to expand across the country as income disparity trends continue and employee / employer relationships strain further. Better to get comfortable now than be a shop late to the game in the next 5-10 years. Obviously this becomes easier if you can underwrite longer investment horizons.
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