Trades M&A Advisory | Sell-Side M&A Services for Canada’s Skilled Trades Businesses

Strategic M&A Advisory for Skilled Trades Companies in Canada

Windsor Drake is a Canadian M&A advisory firm offering institutional-grade sell-side representation to skilled trades businesses across the country. Our process is tailored for founder-led companies operating in the residential, commercial, and industrial trades sectors—including HVAC, electrical, plumbing, mechanical, fire protection, and related building systems services.

We work exclusively on behalf of business owners, helping them prepare for and execute successful exits, recapitalizations, or generational transitions. Every engagement is led by senior advisors and guided by the professional standards and execution principles used at elite global investment banks.

Whether you are considering retirement, responding to buyer interest, or looking to take chips off the table while continuing to scale your company, Windsor Drake provides the process, precision, and buyer access needed to maximize outcomes.

Why Trades Businesses Are Highly Attractive to Acquirers

Skilled trades businesses are among the most sought-after acquisition targets in Canada’s lower middle market. Consolidation in the trades is being driven by:

  • Private equity firms building multi-service platform companies

  • Strategic buyers seeking geographic expansion or vertical integration

  • Aging ownership and succession challenges across independent contractors

  • Labor shortages increasing the value of organized field teams

  • Growing demand for residential and institutional retrofits, ESG upgrades, and energy-efficient building systems

Trades businesses with loyal customers, recurring service work, and well-documented safety and compliance protocols are in particularly high demand.

According to Statistics Canada (https://www.statcan.gc.ca/) and industry reports from the Canadian Mechanical Contracting Association and Canadian Electrical Contractors Association, skilled trades employment and contractor activity are both forecasted to rise steadily over the next decade.

What Is Trades M&A?

Trades M&A refers to the acquisition, sale, or recapitalization of skilled trades service companies, including:

  • HVAC installation, maintenance, and repair

  • Electrical contractors (residential, commercial, and industrial)

  • Plumbing, hydronics, and drain cleaning

  • Fire protection (sprinkler, alarm, inspection)

  • Building automation and energy systems

  • Mechanical contractors serving new construction and retrofits

Transactions vary in form:

  • Full sale to a strategic or financial buyer

  • Partial recapitalization with equity rollover

  • Divestiture of a service division or regional branch

  • Succession or buyout of inactive shareholders

M&A in this sector requires a deep understanding of:

  • Project- vs. service-based revenue

  • Crew scheduling and seasonal staffing dynamics

  • Union vs. non-union structures

  • Licensing, safety certifications, and compliance audits

  • Municipal permitting, tendering, and job costing

Who We Advise

Our clients are typically:

  • $5M–$150M in annual revenue

  • $1M–$20M in normalized EBITDA

  • Operating across one or multiple trades

  • Backed by experienced managers or field leads

  • Contracting with general contractors, property managers, or direct-to-owner clients

We advise:

  • HVAC, plumbing, and electrical contractors

  • Building systems maintenance providers

  • Multi-trade companies offering turnkey solutions

  • Union and non-union operators

  • Family-run businesses preparing for a generational handoff

Windsor Drake’s Sell-Side M&A Process for Trades Firms

1. Strategy & Market Readiness Assessment

We begin with a confidential strategy session to understand your goals, evaluate operational readiness, and benchmark your business against market comps.

Includes:

  • Review of historical and projected financials

  • Normalization of EBITDA and owner compensation

  • Evaluation of customer diversity and contract terms

  • Assessment of backlog, bid activity, and workforce utilization

We provide a valuation range and outline your strategic options.

2. Preparation & Positioning

We prepare a professional-grade go-to-market package tailored to your business. This includes:

  • CIM (Confidential Information Memorandum) outlining services, geographies, safety, and financials

  • Financial model with job costing, margin by service, and WIP adjustments

  • Dataroom prep with contracts, employee files, fleet records, and compliance documentation

We position your business to highlight:

  • Safety culture and compliance history

  • Field crew training, retention, and scalability

  • Relationships with property managers, GCs, and institutions

  • Cross-trade synergies and margin diversity

3. Confidential Buyer Outreach

We run a discreet, NDA-protected outreach campaign targeting:

  • Private equity firms with active trades roll-up strategies

  • Strategic acquirers seeking service or geographic expansion

  • Infrastructure and ESG funds focused on building systems

  • Family offices and regional consolidators

Buyers are vetted for fit, track record, and post-close alignment. You retain full control over who sees your information and when.

4. Negotiation & Term Sheet Structuring

We manage a competitive term sheet process, negotiating across:

  • Purchase price (cash, earnout, seller notes)

  • Tax and legal structure (asset vs. share sale)

  • Working capital peg and close mechanics

  • Equity rollover and employment/consulting terms

Our team ensures buyers compete on more than just price—we evaluate reputation, integration strategy, and alignment with your goals.

5. Diligence & Closing

We quarterback all diligence efforts and work with your advisors to:

  • Organize safety logs, WSIB claims, and certifications

  • Review fleet, tool inventory, and vendor/supplier agreements

  • Validate licensing and subcontractor relationships

  • Coordinate customer transition plans

We remain involved until the day of close—and beyond—to ensure a smooth ownership transition.

Valuation Drivers in Trades M&A

Buyers assess value based on:

  • Adjusted EBITDA and free cash flow trends

  • Mix of project vs. recurring service revenue

  • Crew stability and technician retention

  • Safety record and regulatory compliance

  • Backlog visibility and renewal rates

  • Gross margin consistency and change order management

Typical multiples:

  • 4.5x–6x EBITDA for single-trade, project-based businesses

  • 6x–8x EBITDA for companies with service contracts and multiple trades

  • 7x–9x+ EBITDA for firms with scalable ops, recurring revenue, and institutional clients

Premiums are paid for:

  • Strong second-level management team

  • Institutional contract relationships (hospitals, airports, schools)

  • Certifications like COR, TSSA, and LEED

  • Software-enabled dispatching and mobile field service tech

Trends Shaping Trades M&A in Canada

  • PE-backed platforms rapidly acquiring HVAC, fire protection, and electrical firms

  • Demand for integrated building systems and energy upgrades driving M&A

  • Skilled labor shortages giving value to structured, scalable crews

  • Emphasis on ESG retrofits increasing investment in building mechanical systems

  • Tech adoption (dispatch, quoting, project tracking) separating premium operators

Windsor Drake continuously tracks trades M&A activity, sector-specific valuation trends, and buyer mandates.

Why Windsor Drake

  • Trades Expertise: We understand seasonal workforce models, field productivity, and how buyers underwrite labor-based margin

  • Buyer Access: We maintain direct relationships with the most active trades acquirers in North America

  • Institutional Execution: Our CIMs, models, and diligence processes are built to investment banking standards

  • Discretion & Alignment: We only represent sellers—never both sides. We never list businesses or run public auctions

Legal & Tax Considerations

Selling a trades business involves:

  • Asset vs. share transaction structuring

  • Tax planning (LCGE, capital gains deferral, rollover equity)

  • WSIB, CRA, and provincial licensing reviews

  • Employee vs. subcontractor classification

  • Vehicle and equipment transfer logistics

We collaborate with your accountant, lawyer, and estate planner—or refer trusted M&A professionals—as needed. See CRA’s guidance: https://www.canada.ca/en/revenue-agency/services/tax/businesses.html

FAQs

Will buyers require union approvals?
If you are unionized, buyer diligence will include labor agreement reviews. We help you prepare.

Can I sell my business and still stay involved?
Yes. Many owners remain for 1–2 years post-close in executive or consulting roles.

Can I sell part of my company?
Yes. Partial recapitalizations with a majority sale and minority equity retention are common.

How do I protect confidentiality from employees or competitors?
All buyers are under NDA. No disclosures are made without your consent.

How long does the process take?
Typical sell-side M&A processes run 6–9 months from engagement to closing.

Begin the Conversation

If you own or operate a skilled trades business in Canada and are considering a sale or transition, Windsor Drake offers the institutional experience, buyer access, and disciplined execution to help you succeed.

We help:

  • Maximize valuation through competitive, confidential processes

  • Position your business to stand out in a crowded market

  • Structure deals that reflect your goals and protect your legacy

Windsor Drake | M&A Advisory for Canada’s Trades Sector

Book a Confidential Strategy Call