Sector: B2B Trade Services (HVAC & Asset Maintenance)
Transaction Type: Add-on acquisition for private equity portfolio company
Location: Australia (national search)

Client Profile

A mid-market private equity firm was seeking a bolt-on acquisition to expand a national HVAC services platform. The ideal target needed to deliver geographic reach, recurring commercial contracts, and post-deal integration potential.

Challenge

Despite having dry powder available, the PE firm had been unable to identify or engage credible targets for six months. Key challenges included:

  • Poor visibility of privately held, sub-$10 million businesses
  • Fragmented data on ownership and financials
  • Inconsistent responsiveness from founders
  • Lack of internal resources to run structured outreach and diligence

Cavari’s Role

Cavari was retained to execute a full buy-side origination and execution program. Responsibilities included:

  • AI-driven market mapping and outreach
  • Strategic qualification of targets
  • Financial and operational due diligence
  • Synergy analysis and transaction structuring
  • Founder engagement and deal negotiation

Strategic Approach

Our AI-native sourcing engine scanned over 4,000 Australian B2B services firms, filtering based on contract revenue, compliance indicators, online presence, and leadership structures. Within three weeks, we identified 74 qualified targets and prioritised four for active pursuit.

The final selected target was based in WA, with strong maintenance contract exposure but limited digital systems. This offered a compelling integration and uplift case. Cavari conducted diligence, designed a transaction structure with staged earn-out and vendor rollover, and supported integration planning.

Outcome

  • Closed at 6.2x trailing EBITDA
  • Identified $1.8 million in post-deal synergy value
  • Deal closed within 10 weeks of initial founder contact
  • Cultural fit secured through structured onboarding and retention strategy
  • PE firm reduced time-to-deploy capital by more than 50%

Strategic Insight

Private equity buy-side success in the sub-$15 million EV segment demands precision sourcing, founder sensitivity, and speed. Cavari’s platform combines AI, commercial logic, and human engagement to deliver outcomes that traditional origination teams cannot match.