Private equity (PE) money is pouring into the building products industry. The recent announcement of Ply Gem and Atrium being purchased by a PE firm is an indicator there will be even more PE companies coming into the building products space. Private equity has been around the industry but in my opinion, these companies never really have “cracked the code” with our unique business model.

However, the more I see and hear, the more I believe there are going to be more private equity companies competing for companies in the building products space. The key questions that arise are “Will this be good for our industry?”  “Will this be good for customers?”  “How will employees be affected?”

I have always loved the entrepreneurial spirit of our industry. This spirit separated the window business in particular from other traditional business models. I always felt and still feel that we are more innovative than other, more conservative industries. I am afraid that we could lose some of this risk/reward mentality. But I do have a strong belief that many of these equity firms coming into our space have learned from other previous attempts to break into our industry. These PE firms also have different operating models. Many sit back and let the success continue while others want to put their own stamp on the companies they purchase.

In the end, customers, through their actions, will determine the success of these private equity business philosophies and business models. It is an exciting time in our industry and having more money coming into our industry should supercharge our growth and our technology. Time will tell who becomes most successful.

Great selling!

1 Comment

  1. Excellent thoughts Tyson. I don’t think anyone really knows. Some private equity groups have just destroyed the companies acquired, and some seem to be doing well. I do notice that all had or are in process of some kind of change in their culture. #unchartedterritory

Leave a Reply

Your email address will not be published. Required fields are marked *