In this episode, host Chris breaks down one of private equity’s most defining decisions — when to buy, when to build, and when to walk away. Monroe Family Capital’s portfolio company, Iron Air, has transformed its business since acquisition, driving its multiple from 6.5x to 4.5x through disciplined operations. Now, the team sets its sights on North Shore Climate Services (NCS) — a premier HVAC contractor with a deep talent bench, strong client base, and valuable technical college partnership.The question: Should they pay up for a bolt-on acquisition, or build their presence from scratch?KEY TAKEAWAYS• The Buy-vs-Build Dilemma: Iron Air’s expansion hinges on whether acquiring NCS at a premium 8x–9x EBITDA multiple is worth the immediate market access and workforce advantages.• Operational Excellence Creates Value: NCS’s technical college partnership and focus on technician development highlight how strong workforce systems can drive higher valuations.• Discipline vs. Ambition: Monroe Family Capital’s team debates how far to stretch on price — testing whether strategic fit can justify a top-of-market deal.• Investment Banker’s Role: The episode reveals how a well-run competitive process creates market clarity and maximizes value for sellers — reinforcing why representation matters in middle-market M&A.• Aligned Incentives: Alex, Marla, and Derrick co-invest in the deal, ensuring that management and ownership share both the upside and the risk — a hallmark of professional private equity governance.

• Buy-and-Build Strategy in Action: By bolting on complementary operators like NCS, Iron Air aims to expand route density, market relevance, and blended valuation — showcasing a classic PE roll-up playbook.

Deal Snapshot — Iron Air & Target NCS

Iron Air — 1 year MFC Post-Close

• Trajectory: Steady growth in Western Suburbs; weekly scorecards, dispatch rules, & parts standards embedded.

• Constraint: Integration bandwidth is finite—service windows, technician load, & backlog risk.

• Strategic Goal: Enter Chicago’s North Shore to secure route density & defend the 3–5 year thesis.

Target — NorthShore Climate Services (NCS)

• Type: Bolt-on to Iron Air Services

• Size: ~$6M revenue; service-heavy with sticky municipal & hospitality contracts

• Footprint: Chicago’s North Shore

• Founder: Evan Park — brand-proud, process-wary, respected by facility managers

• Process: Banker-run broad auction; top-of-market ask

• Strategic Fit:

• • Route density → less windshield, more wrench time

  • Sticky renewals if SLAs are protected

  • Brand strength → best-in-region, stronger than Iron Air in the North Shore

• Primary Risks:

• • Overpay if “robust bidding” is real—or lose the market if it isn’t

  • More profitable, but also more technical accounts.

  • Corporate creep post-close is a fast track to earn-out friction.

If Won — Day-30 KPI

Targets: NPS ≥ 62

Backlog ≤ 3.0 days

First-Time Fix ≥ 78%

Truck Rev/day ≥ $1,850

Redo Rate ≤ 2.5%THE OPS PARTNER FOR HIGH-GROWTH OPERATORSThe difference between a good deal & a great one lies in execution. As an operator, you’re under pressure to scale fast — but building the right team takes time, money, and focus away from value creation.That’s why Chris Nolte built Kayana Capital. We partner with PE-backed operators to deliver embedded global talent, performance infrastructure, and operational rigor that accelerate growth.Stop letting hiring bottlenecks slow your portfolio’s momentum. Visit https://www.KayanaCapital.com to learn how we help build the teams that drive returns.