There have been a lot more than eight AV mergers and acquisitions (M&A) in the AV installation industry over the past year. Staying on top of which companies have acquired which is a challenge. Use this quiz to rate your AV installation M&A knowledge.
As hard as it is to stay abreast of the fast-moving acquisitions news, it’s not likely to slow down.
One reason for the surge in AV installation firms buying other AV installation firms is the infusion of private equity capital into the industry.
Even AVI-SPL, the industry’s highest-revenue integration firm, was purchased by an affiliate of H.I.G. Capital, a global private equity firm that manages more than $19 billion in equity capital.
AVI-SPL CEO John Zettel has been clear that support from H.I.G. has empowered his firm to pursue more growth opportunities.
“H.I.G. has brought a strong amount of enthusiasm and support for our vision for the company, and they have brought the resources as well,” he said after AVI-SPL announced expansion to a new office in Frankfurt, Germany.
Indeed, AV mergers and acquisitions activity has been driven by the vast amounts of cash sitting on the sidelines, according to Ari Fuchs, director of The DAK Group, an investment banking firm specializing in middle-market, privately held businesses.
Fuchs has been offering insight on the AV installation industry’s M&A trend with a series of Commercial Integrator columns.
Corporate balance sheets sit on $1.9 trillion of cash just waiting to be deployed in a way which generates shareholder growth.
The private equity industry has over $800 billion of capital for quality investment opportunities, aimed at investor returns. Private equity buyers and corporate purchasers continue to drive M&A activity to new heights.
The effect has been a new dynamic to the AV integration market. Three years ago, the typical integration firm that was a member of NSCA had 28 employees. In 2017, that average number of employees ballooned to 45, according to NSCA executive director Chuck Wilson.
So the industry is changing. If you’re part of this industry, your competitors are changing. Take this quiz to see how well you’re keeping up with the changes.