Plumbing & HVAC Distributor in Eastern North Carolina Sells to Private Equity Group
Plumbing & HVAC Distributor in Eastern North Carolina Sells to Private Equity Group
After more than six decades of growth, leadership, and service, a respected plumbing and HVAC distributor with 10 locations in Eastern North Carolina has been sold to a private equity group (PEG). This milestone marks a new chapter for the 61-year-old company and highlights the power of preparation, strategy, and the right M&A advisory team when it’s time to sell a business.
A Legacy Built on Leadership and Loyalty
Founded as a family business over 60 years ago, the company grew into one of the region’s most trusted distributors with 17 employee-shareholders who carried forward the company’s commitment to excellence and teamwork.
Ready to plan your retirement? Learn more → Exit Planning North Carolina
With a goal to reach $100 million in revenue by 2032, the President and CEO recognized that significant capital was needed for expansion and acquisitions. After exploring traditional financing, leadership realized that selling the business to a well-capitalized partner with similar values and operational style would best position the company for long-term success.
Crafting a Competitive Sale Process
To achieve the best outcome, the owners partnered with Tony Khoury and Tom Morse of Transworld Business Advisors of Eastern NC.
Reflecting the President’s focus on fair value, culture, and opportunity, Tony and Tom ran an off-market, controlled bid process, targeting top private equity and strategic buyers whose values, culture, operational approach and vision aligned with the company’s.
Tony and Tom evaluated multiple offers and conducted interviews with the strongest candidate’s management teams, and the seller’s team. This enabled the seller to select a a private equity group, with an established platform company, that stood out for its operational expertise and shared values. The deal provided immediate liquidity while allowing shareholders to roll over equity for future upside.
Overcoming Challenges and Closing the Deal
As with any major transaction, the deal had its challenges. During due diligence, the buyer raised concerns about the company’s LIFO (Last In, First Out) inventory valuation, resulting in a proposed balance sheet adjustment.
Rather than letting the deal stall, Tony and Tom recommended and coordinated with expert consultants in their extensive professional network to clarify the issue and renegotiated a structure and terms that satisfied both sides.
Maintaining confidentiality was also critical. With 17 shareholders involved, the President kept news of the sale private until it was nearly finalized. Final details, including equity rollover and employment agreements, were completed just days before closing.
The entire process was completed in eight months.
Learn more → How to Market Your Business Confidentially to the Right Buyers
A Strong Future Ahead
The sellers were delighted with the results. The partnership generated significant synergies, expanding market reach, reducing costs, and increasing professional opportunities. Sixteen of the seventeen shareholders remain active, with one retiring as planned.
Insights for Other Business Owners
This sale underscores the importance of preparation and trusted advisory support when selling a business. From valuation to negotiation, having an experienced M&A advisory team makes all the difference.
Learn more → How to Build the Right Team When Selling Your Business
As Transworld Business Advisors of Eastern NC shared:
“Great advisors provide guidance from start to finish - helping business owners navigate complex decisions, assemble a strong deal team, and protect their best interests through closing.”
Thinking About Selling Your Business? Partner with Experts Who Understand Your Goals
Behind every successful sale is the right strategy and the right team. Transworld Business Advisors of Eastern North Carolina bring decades of experience, proven results, and a nationwide buyer network to help business owners navigate their next chapter with confidence.
Here is why North Carolina business owners prefer our services:
- With Transworld Business Advisors of Eastern NC, you gain 45 years of expertise from the world’s largest business brokerage firm. We have sold more than 15,000 businesses — and we're ready to help you sell yours.
- Our experience covers all industries, including manufacturing, distribution, construction, transportation, engineering, and beyond.
- Our nationwide network of buyers and advanced buyer match program helps connect sellers with the right buyer efficiently and quickly.
Contact Transworld Business Advisors of Eastern North Carolina today to discuss your business goals or learn more about preparing your business for sale.
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