As industrial processes and technologies have become more complex, so the installation and maintenance of facilities has become an increasingly critical service. Ensuring that plants operate safely and efficiently minimises downtime and defects, keeping customers happy and protecting margins.
The desire to avoid substantial capital expenditures and maintain existing assets, as well as changing environmental legislation and other regulations, can also create attractive opportunities for rental and maintenance/retro-fit companies.
All these factors have resulted in an attractive environment for businesses operating in the industrial services sector. In addition, long-term contracts and recurring revenues provide a predictability of earnings that is attractive to both trade acquirers and private equity investors.