Commercial Roofing Contractor, 17-Year DFW Texas

$20.7M

Revenue

$2.5M

SDE

6.3x

Multiple

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Full Editorial Writeup

This is a commercial roofing contractor serving the Dallas-Fort Worth metroplex since 2009. The company handles repair, full replacement, new-construction roofing systems and coatings across TPO, PVC, metal, modified bitumen and both low- and steep-slope assemblies, and rounds that out with siding, gutters, architectural metal and exterior rehabilitation. End markets are genuinely diversified across multi-family, retail, office and medical, industrial and warehouse, and institutional and municipal work, originated through general contractor relationships, property-manager referrals and direct-to-owner replacement.

The numbers show a business in a steep ramp. Trailing-twelve-month revenue is $20.68M at a 24.8% gross margin, up from $7.54M in FY2024, producing $2.46M of core adjusted EBITDA. Notably, that EBITDA is stated after deducting a $300,000 all-in cost to replace the owner in the executive seat, so a buyer is not underwriting an unfunded management gap. There is roughly $13.4M of contracted backlog across 24 projects with about $6.8M of revenue still to recognize, and top-five concentration sits near 46% of scheduled contract value.

The operation runs lean with about 10 employees covering project management, estimating, field supervision and administration, plus an established subcontractor network handling installation. Written SOPs and established project-management and accounting platforms are in place. The stated upside is that this entire book of work was built on relationships with no formal sales program, which is either a red flag on durability or a real lever depending on how you read it.

Why we like it

Earnings quality is anchored by a $13.4M contracted backlog with $6.8M of revenue still to recognize, and the $2.46M EBITDA is already burdened with a $300k executive-replacement cost. That means a buyer inherits visible near-term work and does not have to fund a management hole out of pocket. The 24.8% TTM gross margin has held in a 19% to 25% band since FY2023, which suggests disciplined job costing rather than a one-off good year.
Durability comes from 17 years of operating history and genuine end-market diversification across multi-family, retail, office, medical, industrial and institutional work. Roofs fail on their own schedule regardless of the economy, and commercial repair and replacement is non-discretionary spend for property owners. The subcontractor-driven install model keeps fixed overhead low and lets the company flex capacity up and down with backlog.
The market tailwind is location: DFW is one of the largest and fastest-growing commercial construction markets in the country, with continuous new inventory that eventually needs re-roofing and maintenance. That gives a buyer a deep, self-replenishing pipeline without geographic risk. Extending into adjacent Texas metros is a natural, capital-light expansion path.
The operator advantage is a book of work built entirely on relationships with zero formal sales program. A buyer who installs even basic outbound BD, digital lead gen and a preventative-maintenance offering is layering a growth engine onto proven demand. The lean 10-person team and written SOPs mean the platform can absorb more volume without proportional headcount growth.

How to improve it

Formalize preventative-maintenance contracts with the existing property-manager base within the first 90 days. Converting episodic repair calls into annual inspection-and-maintenance agreements creates the recurring, contracted revenue this business currently lacks and materially raises the exit multiple. Price it as an annual per-roof retainer tied to warranty preservation.
Build an actual sales function on top of the referral book. The listing openly states there is no institutional sales program behind $20M of revenue, so hiring one or two commercial estimators-slash-BD reps with a CRM and defined pipeline discipline should lift close rates and reduce reliance on inbound relationships. This is the single highest-ROI move available.
Diversify the top five projects, which represent 46% of scheduled contract value. That concentration is workable in a rapidly growing book but dangerous if a single GC relationship sours, so deliberately widening the base of smaller recurring jobs protects cash flow. Target property-manager portfolios where one relationship spawns many small roofs.
Pursue municipal, healthcare and education facility contracts with dedicated business development. These accounts carry longer sales cycles but produce sticky, budget-backed, repeatable work with high renewal odds. Winning a handful of institutional master agreements would smooth the lumpiness inherent in project-based construction revenue.
Extend the DFW footprint into adjacent Texas metros such as Austin, San Antonio and Houston using the same subcontractor-network playbook. Because installation is outsourced, geographic expansion requires adding estimating and PM capacity rather than heavy fixed infrastructure. Prove the model in one adjacent metro before scaling to a third.
Scale the coatings and exterior rehabilitation lines, which are higher-margin and shorter-cycle than full replacements. Selling coatings as a life-extension alternative to re-roofing captures budget-constrained owners and creates a natural entry point that later converts to full replacement. Bundle it with the maintenance program for maximum stickiness.
Tighten working capital and WIP management given the near-tripling of revenue from $7.54M to $20.68M in a single year. Rapid growth in a project business strains cash as receivables and retainage balloon, so instituting disciplined progress billing and retainage collection protects liquidity. Model the cash conversion cycle carefully before closing.

Diligence notes

Interrogate the revenue jump from $7.54M in FY2024 to $20.68M TTM, because a 2.7x increase in one year is either a durable step-change or a handful of large jobs that will not repeat. Pull the multi-year revenue-by-project detail and confirm how much of the growth is recurring capacity versus one-time large contracts. If the growth was driven by a few outsized projects, normalized run-rate EBITDA is lower than stated.
Verify the $13.4M backlog and $6.8M of remaining revenue against signed contracts and the WIP schedule with job-cost detail. Confirm these are executed agreements, not pipeline or letters of intent, and check estimated versus actual margin on in-progress jobs. Backlog quality is the core of this deal's value, so this schedule must reconcile line by line.
Stress-test the $300k owner-replacement adjustment and the true role the owner plays in winning work. Since the entire book was built on relationships with no formal sales program, the risk is that customer, GC and property-manager relationships walk out with the seller. Quantify how much revenue is tethered to the owner personally and require a meaningful transition and non-compete.
Examine the 46% top-five project concentration and the underlying GC and property-manager relationships. Understand whether these are recurring accounts or one-time builds, and what the renewal or repeat history looks like. Concentration in a project business is normal but must be paired with a clear picture of relationship stickiness.
Clarify the real estate and rolling-equipment treatment, which the listing defers to NDA. Confirm whether the leased facility carries a market-rate lease or an owner-favorable arrangement that will reset post-close, and whether vehicles and A/R are included or negotiated separately. These items directly affect the true purchase price and go-forward cost structure.
Confirm the reason for selling, which is truncated in the listing, and validate margin stability by pulling job-cost detail across the 19% to 25% gross-margin band. Understand whether margins compress at scale given subcontractor pricing and material cost swings. A commercial roofer's economics live and die on estimating accuracy, so audit historical bid-to-actual variance.

Source

Originally listed on BizBuySell. View original listing →