Author: PGP Advisory Marketing Director

Navigating the Evolving Landscape of Private Equity: Insights from the 12th Annual Private Equity Two-Step Conference

At the 12th Annual Private Equity Two-Step Conference held on May 21, 2025, in San Antonio, Jason Brown, Managing Partner of PGP Advisory, moderated a panel discussion focused on one of the most dynamic sectors in the market: specialty subcontractors. This $879 billion industry is foundational to commercial and residential construction, and its evolution offers unique opportunities and challenges for investors.

The Panel Lineup

Jason was joined by two industry experts: Jason Hartman, Principal at PGIM Private Capital and Brandon Upp, Vice President at Main Street Capital Corporation.

Together, they offered deep insights into the key value drivers, credit considerations, and operational factors shaping performance in this highly fragmented and essential sector.

Key Takeaways from the Discussion

1. Value Drivers in the Subcontractor Space
   The panelists explored how recurring revenue, specialization, geographic reach, and strong relationships with general contractors and developers significantly increase a company’s attractiveness to investors. Businesses that operate with operational discipline and have well-documented safety and compliance protocols were seen as especially valuable.

2. Credit Considerations and Risk Assessment
   Subcontractor businesses often deal with extended payment cycles and rising input costs, both of which present risks from a lender’s perspective. Hartman and Upp emphasized the importance of assessing working capital needs and balance sheet flexibility when evaluating creditworthiness in this industry.

3. Macroeconomic Pressures and Margin Management
   The discussion turned to how inflation, labor shortages, and supply chain disruptions are impacting margins. Despite these challenges, many firms are adapting through automation, better cost forecasting, and diversification of suppliers and services.

4. Exit Strategies and M&A Trends
   With strong interest from private equity and strategic buyers, subcontractors are seeing increased M&A activity. The panelists pointed out that the sector’s fragmentation makes it ripe for consolidation, with regional roll-ups and platform plays becoming more common.

5. Operational Excellence as a Value Creator
   All three panelists agreed that operational excellence—including investment in people, technology, and process—continues to separate top-performing subcontractors from the rest. This focus on execution enhances scalability and long-term value.

PGP Advisory’s Perspective

Jason Brown brought his extensive transaction experience and strategic advisory insight to the conversation, guiding the panel through real-world scenarios and asking pointed questions about risk, timing, and opportunity in the lower middle market. As Managing Partner of PGP Advisory, a San Antonio-based M&A advisory firm, Jason specializes in helping business owners and investors maximize value throughout the business lifecycle.

Conclusion

The Specialty Subcontractor panel offered attendees a deep dive into a critical and often overlooked segment of the private equity market. As this $879B industry continues to grow and evolve, staying ahead of trends in valuation, credit, and operations will be essential for both investors and business owners.

Click here to view the full panel discussion.

For additional insights or to explore opportunities in the lower middle market, contact PGP Advisory.

PGP Advisory’s Business Beat – May 2025

Exclusive Business Opportunity: High-Growth Multi-site Med Spa for Sale

PGP Advisory is pleased to present an exciting new listing — a leading multi-site Med Spa franchise operating in the San Antonio Metro area, with over $3.1M in revenue and $890K in 2024 SDE. Total 2025 Q1 Revenue is up 13% year-over-year.

This established business offers:

• Two thriving locations with room to expand into a third territory
• Proven market demand and strong patient retention (1,500+ patients in 2024)
• High-margin services including injectables, hormone therapy, and IV vitamin therapy
• Extensive franchise support with training, marketing, and operational systems
• Fully trained team and favorable lease terms

With a strong foundation, loyal customer base, and scalable infrastructure, this med spa is primed for continued success — ideal for multi-unit operators or investors seeking a high-growth opportunity in the health and wellness space.

Location: San Antonio Metro (leased locations)

If you’re looking to expand your portfolio or step into a booming industry, contact us today to request the full Confidential Business Review (CBR).

Click here to learn more.

Join PGP Advisory at ACG ASA’s 12th Annual Private Equity Two-Step Conference May 21 in San Antonio

PGP Advisory’s very own, Jason Brown, is proud to support and participate as a panel moderator (M&A in the Specialty Subcontractor space) in this year’s Private Equity Two-Step Conference in San Antonio, a premier event bringing together key players in the Central Texas lower-middle market ecosystem. This is a must-attend event for business owners, founders, and growth-minded executives who are exploring what’s next—whether you’re preparing for growth, evaluating exit opportunities, or simply looking to engage directly with active buyers and private equity firms.

The conference is a powerful platform to:

• Learn what your customers—and investors—are really looking for
• Network with buyers and dealmakers from across the lower-middle market
• Discover how PGP Advisory helps business owners like you navigate the private equity landscape
• Gain insights into how to position your business for future success or sale

If you’re based in Central Texas or the broader region and are curious about what private equity means for you or your business, this is your opportunity to make meaningful connections and gather actionable knowledge.

We look forward to seeing you there!

Click here to register and learn more. 

PGP Advisory Celebrates Appointment to Community House Advisory Committee

We are thrilled to announce that Jason Brown, Managing Partner of PGP Advisory, along with Stephen Dyer of Brown and Dyer, have been appointed as Strategic Advisors on the Advisory Board for Community House Advisory Committee (CHAC), a nonprofit subsidiary of VelocityTX. This collaboration underscores PGP Advisory’s commitment to fostering economic growth and innovation within our community.

Community House helps to preserve the legacy of regional family-owned businesses by acquiring organizations in generational transition. Community House’s portfolio companies—Allen & Allen and Quality Fence & Welding—return a portion of their profits to the community as funding for VelocityTX’s bioscience research campus on the East side of San Antonio.

By joining forces with VelocityTX, PGP Advisory aims to contribute to the advancement of San Antonio’s life sciences industry, promoting sustainable economic and community growth. This partnership highlights PGP Advisory’s role as a leader in supporting initiatives that keep our economy healthy, strong, and growing.

We look forward to the positive impact this collaboration will have on our community and the continued success it will bring to both organizations.

Click here to learn more.

The Impact of Tariffs and Interest Rates on Business Acquisitions

When evaluating a business acquisition, buyers and investors often focus on financials, growth potential, and market positioning. But two critical macroeconomic factors—tariffs and interest rates—can significantly shape the deal landscape.

Tariffs: Raising Costs, Shifting Strategy

Tariffs, especially on imported goods and raw materials, directly affect a target company’s cost structure. For manufacturers or import-heavy businesses, increased tariffs can compress margins, reduce competitiveness, and alter supply chains. As a result, buyers may lower valuations or walk away from deals with uncertain exposure. In some cases, however, distressed pricing due to tariff pressure may present opportunistic buys—particularly for firms with domestic production or tariff workarounds.

Interest Rates: Financing the Deal

Interest rates play a central role in acquisition financing. Higher rates increase the cost of debt, reducing the affordability of leveraged buyouts and shifting preference toward cash-rich buyers or strategic acquirers. Conversely, lower rates fuel deal activity by making capital cheaper and expanding return potential. In a rising rate environment, acquirers often become more selective, focusing on stable cash flow and shorter payback periods.

Combined Effect

When tariffs and interest rates rise simultaneously—as seen in some inflation-fighting policy cycles—the deal environment tightens. Cross-border transactions decline, due diligence intensifies, and sellers may need to temper price expectations.

In short, tariffs and interest rates don’t just move markets—they move M&A strategies. Savvy acquirers adjust accordingly, blending financial discipline with macroeconomic awareness.

The Power of Collaboration – Celebrating the Successful Closing of an M&A Deal

At PGP Advisory, we believe that the cornerstone of any successful M&A transaction is collaboration. It’s not just about putting the pieces of a deal together—it’s about fostering partnerships that maximize value and drive mutual success. Today, we’re thrilled to celebrate the successful closing of a landmark transaction of a recent deal that underscores the transformative power of teamwork.

The Provisors Network was instrumental in crafting the right team. Know, Like, Trust are pillars of the Provisors network. One of the unique strengths of this group is connection to high quality advisors working with small and medium sized businesses across the country. Provisors was our first stop when selecting a transaction attorney for a sell-side client on this deal.

In this case, our strategic partnership with, Zach Evangelista, and the team at SER & Associates, played a pivotal role. Their unmatched expertise, combined with a proactive and solution-oriented approach, ensured that this complex deal progressed smoothly, from initial negotiations to final agreements.

The Role of Collaboration in M&A Success

In every deal we undertake, our approach is built on the foundation of collaboration—not just internally, but across all stakeholders. Whether it’s partnering with legal experts, financial advisors, or the leadership teams of the businesses involved, we understand that a transaction’s success depends on cohesive and aligned efforts.

In this recent transaction, Zach provided critical legal insights that helped navigate regulatory challenges, protect client interests, and streamline the closing process. His dedication to understanding the broader business objectives aligned perfectly with our commitment to delivering value-driven outcomes for our clients. Together, we turned potential hurdles into opportunities for growth.

Why Collaboration Matters More Than Ever

In today’s fast-paced and complex business environment, no single entity can master every aspect of a deal. The most successful transactions result from a network of professionals who bring unique perspectives and specialized expertise to the table. At PGP Advisory, we prioritize building strong, trust-based relationships with all stakeholders, ensuring that each deal we facilitate is greater than the sum of its parts.

Our process involves not only acting as advisors but also as integrators—bridging gaps between parties, fostering communication, and maintaining focus on the shared vision. This collaborative ethos extends beyond individual deals, forming the core of how we conduct business and how we continue to build enduring success for our clients.

Looking Forward

As we reflect on the success of this recent transaction, we’re inspired by the power of partnership and the possibilities it unlocks. We are grateful for the trust our clients place in us and for the exceptional professionals, like Zach and his team, who share our commitment to excellence.

At PGP Advisory, we remain dedicated to leveraging collaboration as the key to delivering outstanding results. Every deal tells a story, and every partnership adds another chapter to our success. We look forward to continuing this journey, forging new alliances, and helping our clients achieve their most ambitious goals.

PGP Advisory Announces Sale of San Antonio Adult Day Care Center

San Antonio, TX (December 2023) – PGP Advisory is delighted to announce the sale of an established San Antonio Adult Day Care Center to a private buyer with ties to the local community. This transaction marks not only a successful business transfer but also an opportunity to build upon the exceptional care and support for adult populations and their families in the San Antonio community.

This well-established adult day care center has been an integral part of the San Antonio community, providing exceptional care and services to its patrons. The acquiring team brings complimentary experience in education, business, and a strong their local presence with a shared commitment to the center’s values and mission. The buyers intend to build upon the facility’s rich legacy, expand its reach, and continue to positively impact lives.

Thank you to all parties involved in completing this sale.

For more information on how PGP Advisory can assist you in buying or selling a business, please contact us at (210) 580-4178. We look forward to helping you achieve your business objectives.

About PGP Advisory:

PGP Advisory is a leading business brokerage and M&A Advisory firm dedicated to helping entrepreneurs buy and sell businesses across various industries. With a team of experienced professionals and a commitment to exceptional service, we partner with business owners to navigate the complexities of the sale process to achieve their desired outcomes.

Disclaimer: This announcement is for informational purposes only. Any information regarding the sale of the adult day care center business is subject to the terms and conditions agreed upon by the parties involved.