Building Materials & Services - Labor Services

Companies in the Labor Services sub-sector provide inspection, installation, maintenance, repair and retrofit functions for commercial, industrial, institutional and residential customers. This includes companies engaged in the following:

• Facilities Services
  • Electrical / Mechanical
  • Elevators / Escalators
  • Fire & Life Safety
  • Landscaping
• Specialty Contracting
  • Demolition / Excavation
  • Wall / Ceiling / Flooring
  • Roofing / Siding
  • Utility / Infrastructure

Merger and acquisition activity within the "Labor" services sub-sector has been mixed. Areas of high interest include companies that: (i) negotiate their contracts, (ii) have a high percentage of recurring revenues, (iii) have a large number of repeat customers, and (iv) operate in niches with high barriers to entry. Areas of limited interest include companies that are: (i) hard-bid driven, (ii) new construction oriented, (iii) residential market focused, and (iv) have large bonding requirements. One common misconception about the Labor Services sub-sector is that it does not attract financial buyers. Over the last ten years, financial buyers have been the most active acquirers in this sub-sector, particularly in niches conducive to consolidation and / or buy-and-build strategies.

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