We are on a mission to dominate the utilities services sector in The Dallas-Fort Worth Metropolitan Area
...by growing, acquiring, and partnering.
We are on a mission to dominate the utilities services sector in The Dallas-Fort Worth Metropolitan Area
...by growing, acquiring, and partnering.
Why Utility Companies?
High Returns on Invested Capital
Utility companies require less capital to run than other types of businesses, like car manufacturers, for example. This is because plumbing and HVAC only require an office, a modest shop to store tools and equipment (very minimal), and outfitted work vans. Because utility companies need less capital to run, they can more easily grow revenues and profitably. This offers investors a great opportunity to receive a high return on invested capital.
Complexity Competitive Advantage
There are many reasons why plumbing and HVAC businesses are less crowded than most other businesses. For one, these licensed trades are more technically complex, and have a higher barrier to entry because of licensing. Plumbing and HVAC businesses must endure a rigorous licensing process simply to legally operate in a given state. Then, to perform optimally and provide customers with superior quality at competitive pricing, a plumbing or HVAC company needs to have sufficient purchasing power in order to (a) buy materials at the most competitive rates, and (b) secure the best technicians by providing a top-tier benefits package.
Low P/E Ratio & Less Competition from Investors
There are few entities on the demand side of the M&A equation relative to the large supply of baby boomers looking to exit. This leaves us with an opportunity. We know this is the case because smaller private equity firms have just started to invest in utility service companies. We understand the importance of price when deciding to invest. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.
Fragmented
Baby boomers are retiring at an estimated rate of 10,000 per day. This means that there are a lot of motivated sellers out there, and we're negotiating with some of them right now. Our strategy is to cherry-pick the utility service companies with great track records and sound growth prospects (if the price is right).
Recession Resistant
Plumbing and HVAC are historically recession resistant. Plumbing, heating, and cooling will be the last thing Americans will give up before food in a deep recession. Moreover, part of our strategy is to diversify our revenue as much as possible to prepare for recessions (for ex., with ongoing commercial maintenance and residential contracts that are less elastic than new commercial projects).
Leverage
We can leverage transactions by using the SBA or commercial debt to prudently increase investor ROI. The cost of debt is cheaper than equity, so by using debt financing we can reduce costs and increase returns for our investors. We have been able to secure more low-cost debt financing as we continue to prove ourselves as experienced operators. Banks are looking for good operators that they can trust with low-cost debt.
Portfolio
Acquisition #1
Commercial Plumbing
Closed Dec 2023
Acquisition #2
Coming in 2024
Acquisition #3
To Be Announced
Acquisition #4
To Be Announced
Acquisition #5
To Be Announced
Acquisition #1
Commercial Plumbing
Closed Dec 2023
Acquisition #2
Coming in 2024
Acquisition #3
To Be Announced
Criteria For Investment
Industry Focus
Our primary interest lies in companies within the utilities sectors, such as plumbing, HVAC, concrete, electrical, mechanical, fixtures, etc. These industries align with our strategic goals and expertise.
Commercial Orientation
We are specifically interested in companies with a primary focus on the commercial sector. This focus is crucial as it aligns with our portfolio's growth trajectory and market demand.
EBITDA
We seek businesses with a minimum EBITDA of $500,000+, indicating strong profitability and operational efficiency.
Location
Preference is given to businesses based in the Dallas-Fort Worth (DFW) area.
Looking to sell?
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Leadership
Carlos Courtney
A former microbiologist turned marketing agency owner. Carlos has owned multiple 6-figure businesses over the last half decade in the business-to-business service space and has worked with a variety of top-tier clients, including Allergan, Keller Williams, and The Game Changers, a Netflix documentary produced by James Cameron, Arnold Schwarzenegger, and Jackie Chan. BS in Microbiology from Arizona State University. Carlos has managed $5M in ad spend across Facebook (Meta) and Google Ads with an average of 3X return on ad spend (ROAS) to generate tens of thousands of qualified leads for financial services, health and medical, and home-based services such as HVAC, roofing, window washing, and pest control.
Mary Gendron
A savvy former Human Resources Director with experience in recruiting, onboarding, training, payroll, policy implementation, acquisitions, M&A, culture creation, grant funding and more on a national level. 12+ years of experience in leadership, coaching, as well as team and workforce development. Previous M&A experience with roll-ups in the residential solar installation sector across the South, Northeast and Midwest with a large focus on HR, people, growth strategies and operations. Mary is passionate about people along with operations and finding the best balance between the two to optimize growth. SHRM certified, BA & MA in Sociology from Arizona State University.
Jim Berry
Visionary leader and revenue enhancer leveraging 30+ years of progressive, senior-level management experience of developing profitable strategies and organizational effectiveness on a national scope. Takes responsibility for company’s bottom line, developing solution-oriented tactics and rolling out cost control practices for optimal efficiency. Drives performance enhancement of cross-functional teams. Currently a management consultant, 14 years as an owner and regional manager in the pest control industry, 8 years as a COO, VP of Operations and general manager in the HVAC and plumbing industry. Has managed the P&L for multiple million-dollar companies, with the largest being $60 million annual revenue.
Kyle Kidd
Currently a Partner at Leo Berwick specializing in M&A Tax Advisory for Renewables, Infrastructure, and Private Equity, brings a wealth of experience and expertise to our team. A Certified Public Accountant, Kyle's impressive career includes over a decade at KPMG US as Managing Director in Mergers & Acquisitions Tax. His academic credentials from the University of Oklahoma - Price College of Business, with a MACC and BBA in Accounting, further solidify his role as a trusted advisor in deal advisory. Kyle's deep understanding of tax, auditing, and partnership taxation is pivotal in navigating the complexities of the renewable energy sector.
Travis Dover
Travis Dover is a top-performing executive with an impressive 25-year career marked by pivotal roles at industry giants like Lonza and Pfizer Pharmaceuticals. His expertise in finance and strategic planning is highlighted by his leadership in Lonza's acquisition of Capsugel, catalyzing sustainable growth and profitability. With a proven track record in managing P&L ranging from $30M to $600M, Travis has orchestrated significant operational improvements and robust financial performance across the board. Recognized as an "Under-40 Star" by the Chamber of Commerce, Travis' exceptional leadership and M&A experience make him a powerhouse addition to our board. His skill set makes him perfectly suited to focus on due diligence, financials, operations and growth within the L&W Capital team.
Leadership
Carlos Courtney
A former microbiologist turned marketing agency owner. Carlos has owned multiple 6-figure businesses over the last half decade in the business-to-business service space and has worked with a variety of top-tier clients, including Allergan, Keller Williams, and The Game Changers, a Netflix documentary produced by James Cameron, Arnold Schwarzenegger, and Jackie Chan. BS in Microbiology from Arizona State University. Carlos has managed $5M in ad spend across Facebook (Meta) and Google Ads with an average of 3X return on ad spend (ROAS) to generate tens of thousands of qualified leads for financial services, health and medical, and home-based services such as HVAC, roofing, window washing, and pest control.
Mary Gendron
A savvy former Human Resources Director with experience in recruiting, onboarding, training, payroll, policy implementation, acquisitions, M&A, culture creation, grant funding and more on a national level. 12+ years of experience in leadership, coaching, as well as team and workforce development. Previous M&A experience with roll-ups in the residential solar installation sector across the South, Northeast and Midwest with a large focus on HR, people, growth strategies and operations. Mary is passionate about people along with operations and finding the best balance between the two to optimize growth. SHRM certified, BA & MA in Sociology from Arizona State University.
Jim Berry
Visionary leader and revenue enhancer leveraging 30+ years of progressive, senior-level management experience of developing profitable strategies and organizational effectiveness on a national scope. Takes responsibility for company’s bottom line, developing solution-oriented tactics and rolling out cost control practices for optimal efficiency. Drives performance enhancement of cross-functional teams. Currently a management consultant, 14 years as an owner and regional manager in the pest control industry, 8 years as a COO, VP of Operations and general manager in the HVAC and plumbing industry. Has managed the P&L for multiple million-dollar companies, with the largest being $60 million annual revenue.
Kyle Kidd
Currently a Partner at Leo Berwick specializing in M&A Tax Advisory for Renewables, Infrastructure, and Private Equity, brings a wealth of experience and expertise to our team. A Certified Public Accountant, Kyle's impressive career includes over a decade at KPMG US as Managing Director in Mergers & Acquisitions Tax. His academic credentials from the University of Oklahoma - Price College of Business, with a MACC and BBA in Accounting, further solidify his role as a trusted advisor in deal advisory. Kyle's deep understanding of tax, auditing, and partnership taxation is pivotal in navigating the complexities of the renewable energy sector.
Travis Dover
Travis Dover is a top-performing executive with an impressive 25-year career marked by pivotal roles at industry giants like Lonza and Pfizer Pharmaceuticals. His expertise in finance and strategic planning is highlighted by his leadership in Lonza's acquisition of Capsugel, catalyzing sustainable growth and profitability. With a proven track record in managing P&L ranging from $30M to $600M, Travis has orchestrated significant operational improvements and robust financial performance across the board. Recognized as an "Under-40 Star" by the Chamber of Commerce, Travis' exceptional leadership and M&A experience make him a powerhouse addition to our board. His skill set makes him perfectly suited to focus on due diligence, financials, operations and growth within the L&W Capital team.
Contact Us
We'd love to hear from you with questions, comments, and inquiries! Whether you're looking to sell your business, invest with us, or join our team. Message us below.
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Disclaimer:
Our videos and other presentations on investment opportunities (our “Presentations”) are neither an offer to sell nor the solicitation of an offer to buy any security. Only the offering materials can make such an offer. Therefore, a copy of the offering materials must be made available to you in connection with the offering. The Presentations must be considered in conjunction with the offering materials in order to understand fully all of the implications and risks of the offering of securities to which it relates.
To understand a private offering fully, you should read the entirety of the offering materials carefully, including the “Risk Factors” sections, before making a decision to invest. Some of the more significant risks include the following: the referenced investments are risky speculative investments; there will not be any market for such investments; there is no assurance that the companies underlying the investment may ever be sold; and you will not have the benefit of an independent review of the final terms of such investments.
If the investment sponsor loses or is unable to retain key personnel, such sponsor may be delayed or unable to implement the business plan. The relevant operating team has a limited operating history and limited experience operating in the relevant industry and our business is not diversified.
It is important to note that private offerings are complex anFooterd best intended for sophisticated investors, and may have high costs of ownership. Private Investments carry certain unique risks which should be carefully considered and fully understood by individual investors before investing.
The referenced securities will be offered via offering materials. You can request these documents by sending an email to [email protected].
Carefully review these documents prior to making an investment decision.
Risks may include loss of principal or the possibility that the investor will own the referenced assets at a depressed price. Securities discussed in this video are not registered with the SEC but are issued pursuant to an exemption from registration. Before Investors make any investment, they should read the offering materials for complete information about such issuer and the securities being offered. Investors should understand the characteristics, risks, and rewards of each investment before making a decision to invest in the security. Investors should contact their own accounting, tax or legal advisors to review the suitability of any investment. Investment are issued as non-registered securities. Non-registered securities are exempt from SEC registration and are issued under the JOBS ACT, Regulation D, Section 506(c).
L&W Capital, is not a broker/dealer, does not give legal or accounting advise, and does not sell securities or give any investment advice.