Buy and Build Ep 56: Why Fire Protection is Such an Attractive Sector for Consolidation? Luis Reyes (Managing Partner: Iberian Ventures)
Dec 12, 2022
Luis Reyes, Managing Partner at Iberian Ventures, dives into the booming fire protection sector in Spain, explaining why it's ripe for consolidation. He reveals the benefits of rolling up smaller operations and securing acquisitions below private equity standards. The conversation touches on the unique regional dynamics, challenges in scaling, and labor supply issues in this highly specialized field. Luis shares insights on networking opportunities and the crucial role of localized customer engagement in driving success in the market.
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Pivot to Fire Protection
- Iberian Ventures initially planned a diverse holding company.
- Their second acquisition, in fire protection, led them to specialize.
Localized Operations
- Fire protection operations are highly localized due to on-site needs.
- Clients are local, and travel across the country is impractical.
Revenue Streams
- Large fire protection companies often rely on new construction revenue.
- Maintenance contracts are more fragmented and higher margin.