Q1 2025 Construction & Home Services M&A Trends in the Southwest & Las Vegas

Soo, as promised…

We’re back with the data, the deals, and the real talk.

Because let’s face it—anyone can share headlines. But in this market, you don’t need noise. 

You need to know what deals actually closed, where valuations are trending, and how the smart money is moving.

Especially if you’re trying to grow, sell, or just not get left behind.

In this breakdown, we’re unpacking:

• What closed in Q1 across construction and home services

• Where deal valuations are holding (or slipping)

• Why family offices are edging out PE in certain plays

• And why cities like Reno are becoming a magnet for strategic investment

  
  

Because if you’re in the business of exits or expansion, you should be watching what the real players are watching.

Let’s zoom out for a second.

Southwest Deal Activity Remains Strong

According to Builder Online, 2024 saw an uptick in strategic M&A across residential and commercial construction—and that momentum hasn’t slowed in Q1 2025. We're seeing sustained consolidation driven by:

• Margin pressure from inflation and labor shortages

• Owners nearing retirement with no succession

• A shift toward full-service platforms and bolt-on plays

Southwest Activity by the Numbers:

• 18 announced transactions in 2024 (vs. 14 in 2023)

• Average P/TBV ratio in 2024: 142%, a slight dip from 145% in 2023 (Forvis Mazars)

• Expectation for M&A to grow in 2025—especially across HVAC, plumbing, and specialty trade services.

  
  

Notable Q1 2025 Transactions

Sunland Expands Across Texas & New Mexico: Sunland acquired Big Bend Services in Midland, adding directional drilling and utility infrastructure to its toolkit across five states.

This is a horizontal integration move that increases service range while locking in regional dominance.

Drees Homes Enters San Antonio via Monticello Homes Acquisition: Over 2,000 homes built. Luxury niche.

This wasn’t just a land grab—it’s a brand equity acquisition by a Kentucky-based builder entering a booming Texas market.

Your takeaway? Cross-state consolidation isn’t slowing—it’s targeting relationship-rich, reputation-heavy markets. If you’ve built trust locally, you're on someone’s radar.

What’s Really Happening in Vegas and Reno?

While the headlines haven’t dropped many splashy M&A deals in Las Vegas or Reno for Q1, the momentum is building—and insiders are already positioning for a busy back half of 2025.

In Vegas, consolidation is starting to pick up.

Toll Brothers acquired StoryBook Homes, expanding their footprint into the first-time and move-up buyer markets . That’s not just a land grab—it’s a strategic move to cover more of the demand curve as interest rates fluctuate and affordability stays tight.

Meanwhile, all signs from the NAHB International Builders’ Show (IBS) and Kitchen & Bath Industry Show (KBIS)—both hosted in Las Vegas—point to one thing: acquisition appetite is alive and well. On-the-ground conversations indicated that more consolidation is expected, especially as aging ownership looks to exit while multiples remain steady .

Reno continues to punch above its weight.

Metcalf Builders recently completed The Kallan Apartments, a $63M riverfront development. While it’s not a direct M&A transaction, it signals strong investor confidence in Reno’s potential as a scalable, mid-sized market .

Zooming out, the trends align: M&A activity in building products rose 31% YoY, with more than 230 deals closed or announced in 2024.

HVAC services remain one of the fastest-consolidating segments, driven by recurring revenue and low customer churn.

If you're in construction, trades, or home services in the Southwest, the deals may not all be public—but the smart money is circling.

Valuations: Stable but Selective

While some sectors are seeing volatility in valuations, construction and trades are holding strong—if you’re positioned well.

• Average deal size in lower-to-core middle market (EBITDA $1M–$5M): 5.8–7.2x, with higher multiples for firms with:

  • Recurring revenue

  • Government/commercial contracts

  • Owner-agnostic ops structure

• Larger strategic acquirers are willing to stretch into 7.5x+ territory for companies with multiple locations and strong leadership pipelines.

  
  

Sellers: Want top dollar? Focus on operational independence and pipeline predictability.

Why Family Offices Are Winning Right Now

Here’s what’s happening under the radar: Family offices are quietly outpacing traditional private equity in direct deals—especially in trades and essential services.

From bfinance and BNY Mellon:

• 22% of portfolios are now in private equity—the highest among alternative investments

• 71% of family offices plan to do six or more direct investments in 2025

• 50% are increasing allocations to private equity

  
  

Why?

They don’t need a three-to-five year flip—they’re thinking ten, fifteen, twenty years.

They’re not chasing unicorns.

They’re buying cash flow, consistency, and community-rooted businesses.

Translation: If your business is profitable, well-run, and doesn’t need a 70-page pitch deck to explain itself? You’re their type.

What Smart Money Is Watching

Let’s zoom in on Las Vegas—because while the headlines are hyping Sunbelt growth in broad strokes, the real story is in the numbers... and Vegas is making moves worth watching.

Q1 2025 kicked off with major infrastructure momentum: the Vegas Loop expanded to include the Westgate Resort Station, reinforcing the city's long-term play on connectivity and convention traffic.

(screams in orange cones)

Add in continued investment in residential development—with builders still betting on affordability despite high rates—and you’ve got a metro that’s not just surviving… it's strategically positioning itself for long-term upside.

But let’s talk brass tacks.

Because when it comes to M&A in home services and construction, one of the most telling metrics for buyers is the Price-to-Tangible Book Value (P/TBV) ratio.

P/TBV (Price-to-Tangible Book Value)

• What it is: A valuation multiple comparing the purchase price of a company to its tangible net book value (assets minus liabilities, excluding intangibles like goodwill, trademarks, etc.).

• Why it matters:

  • It tells buyers how much they’re paying relative to the hard asset value of a business.

  • A P/TBV ratio of 1.42 (or 142%) means a buyer is paying 42% more than the net tangible assets—often justified by cash flow, growth potential, or strategic fit.

✅ Used in:

• Financial services, construction, and asset-heavy businesses.

• M&A evaluations, especially when intangibles or goodwill are excluded.

Which is not quite...

🔻 Liquidation Value

• What it is: The estimated amount that would be received if a company's assets were sold off quickly, often at a discount, typically under distressed conditions.

• Why it matters:

  • It’s a floor valuation—used when a business is shutting down or being sold off in parts.

  • Usually much lower than book value or market value, because assets are sold under pressure.

✅ Used in:

• Bankruptcy proceedings, asset-based lending, distressed sales.

  
  

TL;DR:

Metric	What It Reflects	Context
P/TBV	How much a buyer is paying relative to the company’s tangible assets	Healthy M&A, strategic valuation
Liquidation Value	What assets are worth in a fire sale	Distressed or exit-at-any-cost scenarios

So if you're negotiating or evaluating a deal, here’s the simplest way to think about it:

P/TBV = What you’re paying vs. what you’d get if the company shut down tomorrow and sold off everything it physically owns.

Tangible book value strips out the fluff—no goodwill, no patents, no brand value.

Just the hard assets: real estate, equipment, inventory.

In construction and trades businesses, where physical assets are king, this ratio helps investors spot whether they’re getting a deal or overpaying for a story.

In the Southwest, including Nevada, 2024’s average P/TBV ratio hovered around 142%, slightly down from 145% the year prior (Forvis Mazars).

That’s a healthy signal.

Buyers are still paying a premium—because the sector is strong—but not irrational multiples.

This is where family offices and long-term players are leaning in.

And if you’re in Vegas? That multiple gets even more context.

Builders are navigating sticky labor markets, tightening materials supply, and regulatory constraints—but they’re still closing deals.

Vegas has quietly become one of the most stable P/TBV markets in the West, especially for operators with clean books, recurring revenue, and owner-independent systems.

The Bottom Line

In a world where capital is more cautious and deals are getting sharper, understanding how Vegas stacks up—both on the ground and on the balance sheet—is key.

Whether you're an owner considering a sale or a buyer eyeing long-term platform potential, the P/TBV ratio isn't just a finance term.

It's your pulse check on real value.

Smart Money Loves Reno

Las Vegas is growing. But Reno? It’s exploding quietly.

• Ranked sixth nationally in industrial construction volume (Meridian IB)

• Surge in advanced manufacturing, logistics, and construction demand

• Proximity to Northern California plus a tax-friendly climate makes it a prime investment target

• Increased permitting for build-to-rent and light industrial projects

  
  

Add in a steady influx of skilled labor from California (minus California bureaucracy), and it’s no wonder Reno is pulling both institutional and entrepreneurial attention.

Q1 gave us signals. Q2 is when the separation starts.

• If you’re looking to sell, make this the quarter you clean up your systems (aka get your sh*t together).

• If you’re looking to grow, align yourself with capital that understands how trades and construction actually work.

• If you’re not sure what your next move is—start watching where the capital is going, not just where the noise is.

Success leaves clues.

Because 2025 isn’t about playing bigger. It’s about playing smarter.

If you’re in the trenches of construction, trades, or home services—I see you.

I’m in it too. And I’m here to help you build something that lasts.