Contractor Seller Scarcity Puts Vendors in the M&A Driver’s Seat

A shortage of buyable contractors and a flood of acquisition interest is giving sellers more power to set terms in deals and keep prices high.

Private equity is raising billions to expand its footprint in the insulated procurement space, and large contractors appear primed to swoop in to buy smaller firms when they hit the market.

“There are fewer assets on the market today, particularly those of quality in terms of scale and market position,” Kate Troendle, KippsDeSanto managing director, said in an interview. “It’s really become a sellers’ market.”

A 2023 report from KPMG found that supply chain disruptions ...