What Buyers Actually Care About When Looking at Roofing Companies
Most roofing company owners think the magic number is somewhere between $10-$20 million in revenue. Hit that mark, and suddenly your phone starts ringing with private equity firms, strategic buyers, and brokers. But here’s the truth: revenue is just a headline. It gets attention, but it doesn’t close deals.
What buyers actually care about is what’s under the hood.
Whether you’re thinking about selling now or just want to build a more valuable business, here’s what serious buyers (like IHS) are really looking for.
1. Consistent EBITDA, Not Just a Big Year
We’re not impressed by one massive storm season or a killer commercial contract that won’t repeat. What matters is stable, healthy EBITDA over a 3-year period. Think of it like a batting average, not a home run highlight.
We’re looking for:
Consistency over spikes
Profit margins that show operational discipline
Clear financials that hold up under scrutiny
2. A Team That Can Run Without You
If the whole business falls apart when the owner goes on vacation, it’s not a business. It’s a job.
Buyers want to see:
A strong GM or ops leader in place
Defined roles beyond the owner
Systems and processes that support scale
The less the business depends on you, the more valuable it becomes.
3. A Healthy Mix of Work
Too much insurance work? Too much storm work? Too much of anything can be a red flag. Diversified revenue streams show resilience.
We pay close attention to:
Retail vs. insurance breakdown
Commercial vs. residential balance
New construction exposure (usually a negative)
A balanced mix reduces risk, and risk directly impacts valuation.
4. Backlog and Momentum
We want to buy into a business that’s trending in the right direction, not one that peaked last year. A strong backlog means revenue visibility and smoother transitions post-close.
If you’re growing, we can grow with you. If you're flat or shrinking, we’ll ask a lot more questions.
5. Clean Books and Clear Reporting
Nobody’s perfect, but messy books are one of the fastest ways to kill a deal or reduce your valuation.
What helps:
A real accounting system (QuickBooks is fine if it’s clean)
Monthly P&Ls, balance sheets, and job costing reports
Clear distinction between personal expenses and business expenses
If we have to untangle everything during diligence, it slows the process and erodes trust.
Final Thoughts
You don’t have to be perfect to build a business someone wants to buy. But if you’re intentional about the right things; profitability, team, balance, systems, you’ll have options when the time comes.
And even if you never sell, building a business that someone would want to buy gives you more freedom, more control, and less stress.
If you’re thinking about selling, I can help you understand your company’s value and see if now’s the right time to consider a partnership or exit. Take advantage of our free business valuation tool to get a better idea of what your business is worth and discuss your options.
