What the buyer is paying for
Buyers value a roofing company on the cash left after one working owner is paid, then apply a multiple. Most Main Street companies sell at about two to three times that cash flow.
A hail season can double revenue for twelve months. A careful buyer looks back three to five years and prices the average, not the peak.
Storm work versus repeat work
Insurance claim jobs come and go with the weather. Repair contracts, property manager accounts and maintenance agreements repeat, and buyers pay more for revenue that returns on its own.
Show the split between storm jobs and steady accounts in your financials. It is one of the first questions a lender asks.
Crews, licenses and warranties
Buyers ask who runs the crews and whether the foremen would stay. They also check how workers are paid, since off the books labor is a major red flag in diligence.
Open warranty claims are a liability the buyer inherits in an asset sale. Keep a clean list of past jobs and any callbacks.
How a deal is built
Most roofing companies sell as asset deals. The buyer takes trucks, tools, the brand and the customer list, and the seller usually keeps cash and receivables for finished jobs.
Expect the buyer to want a transition period. Offer a few weeks of training and trade extra time for price if they ask for more.
Questions on broker fees and how long a sale runs are common at this stage.
Getting ready
If every estimate flows through you, buyers discount the price. Train an estimator and move customer calls to the office staff before you list.
Read how a broker handles confidentiality and check your UCC liens on trucks and equipment. When you are ready, request a price range.
Who Writes the Check
- Larger roofing or exterior contractorWants more crews, more territory and a name homeowners already trust.
- Private equity backed home services platformLooks for steady earnings it can combine with other trades under one banner.
- Experienced estimator or project managerKnows the work and wants a company that does not depend on the owner for every bid.