5-Star Residential Roofing & Exterior Contractor, 15-Year Northeast Ohio Business

$2.2M

Revenue

$753K

SDE

3.9x

Multiple

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Full Editorial Writeup

This is a residential roofing and exterior contractor founded in 2011 serving Northeast Ohio. The company started with roofing and expanded into complementary exterior services including siding, gutters, windows, and doors, giving it a full-scope offering for homeowners protecting their most valuable asset. Over 15 years it has completed more than 1,000 roofing projects and holds an all 5-star Google rating, which drives a heavily referral-based customer pipeline in a fragmented local market.

The business runs on a lean footprint: 9 people total (3 full-time employees and 6 contractors) out of a leased 2,000 square foot space. It generates roughly $2.2M in revenue and $753K in reported EBITDA, implying an unusually high 33% margin for a residential roofing operation. That margin is the single most important number to interrogate, because roofing this profitable at this revenue level is either exceptionally well-run or reflects add-backs and owner labor that will not carry to a new operator.

At $2.9M against $753K of EBITDA, the deal is priced at 3.85x, which is toward the top of the range for a sub-$1M contractor with heavy owner and referral dependence. The reason for sale is a planned relocation with a full handover offered, not distress or retirement. For a buyer who can systematize sales, add crews, and layer in insurance/storm work, the local brand and review moat are real assets, but the price assumes those margins are durable and the referral engine survives owner departure.

Why we like it

Earnings quality is anchored by a project-driven contractor doing $2.2M at a claimed 33% margin, which is well above typical roofing gross-to-EBITDA conversion. If the $753K holds up under scrutiny of add-backs and owner labor, the cash flow profile is genuinely attractive for a business this size.
The moat is a spotless all 5-star Google rating across 1,000-plus completed projects, which in a fragmented, trust-driven category is the primary lead source. Referral-driven demand lowers customer acquisition cost and gives a disciplined operator real pricing power on premium exterior work.
Roofing and exterior repair is genuinely non-discretionary: a failing roof gets fixed in any economy, and storm damage creates demand independent of the credit cycle. That essential nature, plus expansion already made into siding, gutters, windows, and doors, gives revenue multiple entry points into the same home.
The operation is lean at 9 people (3 full-time, 6 contractors) in a leased 2,000 square foot space, so overhead is low and the model scales by adding crews rather than fixed cost. A buyer inherits systems, brand, and market presence without carrying real estate or heavy fixed infrastructure.

How to improve it

Formalize a repeatable sales and estimating process so leads convert without the owner personally closing deals. Roofing at this margin usually runs through the founder, so building a commission-based sales function protects revenue through the transition and is the first 90-day priority.
Layer in a proactive insurance and storm-restoration channel to capture higher-ticket, insurer-funded jobs. Northeast Ohio sees regular hail and wind events, and a dedicated supplement/claims process meaningfully lifts average job value and volume.
Add a maintenance and inspection membership offering to create the recurring revenue this business currently lacks. Annual roof/gutter inspection plans smooth cash flow, generate warm re-sell opportunities for siding and window work, and increase enterprise value at exit.
Convert more of the 6 contractors into managed, branded crews with quality controls to protect the 5-star reputation as volume grows. Scaling headcount without protecting review quality is the fastest way to erode the single biggest asset here.
Invest in a proper CRM and digital lead engine (paid search, local service ads) to reduce dependence on organic referrals. The review moat is strong but a second, controllable acquisition channel de-risks growth and supports geographic expansion.
Cross-sell the full exterior portfolio systematically at each roofing job. Every roof replacement is a warm lead for gutters, siding, and windows, and a structured attach process raises revenue per customer with no new marketing spend.

Diligence notes

Interrogate the 33% EBITDA margin line by line, because it is high for a residential roofing shop at $2.2M revenue. Confirm what add-backs produced the $753K, whether owner compensation and selling labor are fully expensed, and whether margins are inflated by a strong storm year.
Quantify owner dependence in lead generation and sales closing. A referral-driven business with a founder relocating carries real transition risk, so map exactly how leads originate, who owns customer relationships, and what happens to volume when the visionary founder leaves.
Scrutinize the contractor-heavy labor model (6 of 9 workers are contractors) for worker-classification and availability risk. Verify these crews stay post-close, review any 1099 versus W-2 exposure, and assess whether crew capacity constrains growth.
Pull revenue and job history by year to validate the year-over-year growth claim and the mix between roofing and the newer siding/gutter/window/door lines. Confirm backlog, seasonality of Ohio winters, and how concentrated revenue is in a few large jobs or referral sources.
Verify the industry credentials and warranty obligations referenced in the listing. Manufacturer certifications often transfer conditionally, and outstanding workmanship warranties on 1,000-plus completed projects are a liability a buyer inherits.

Source

Originally listed on BizBuySell. View original listing →