Established Custom Guttering, Sheet Metal & Roofing Installer, 30-Year Indiana Contractor

$2.0M

Revenue

$583K

SDE

3.6x

Multiple

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Full Editorial Writeup

Backed by a skilled management team and process, this 30 plus year old established specialty guttering sheet-metal, and roofing installer delivers custom fabrication and installation services to custom homebuilders, residential clients, and roofing contractors throughout central Indiana. Approximately 80% of revenue flows through long-standing builder relationships built entirely on referral and reputation for over three decades The business has operated on brand equity built without a formal marketing program or sales force.The firm's differentiated model spans custom guttering, specialized sheet-metal and flashing fabrication, and select roofing across all major material types — a full-service scope that competitors in the market routinely refer out. The business operates with zero debt, all equipment and vehicles fully owned and unencumbered.Investment Highlights• Experienced management team and field leadership in place, providing full operational continuity post-acquisition.• Proprietary in-house fabrication capability that competitors in the market routinely refer out, creating a meaningful and hard-to-replicate competitive advantage.• Multi-decade operating history with the majority of revenue driven by long-standing relationships with the premier residential builders.• Debt-free operation with all assets fully owned; clean balance sheet with minimal liabilities at time of sale.

Why we like it

Earnings quality is strong for the category, with $583K of cash flow on $2.0M of revenue, a 29% margin that beats most commodity roofing and gutter installers. The zero-debt, fully-owned-asset balance sheet means the buyer inherits clean cash flow without capex catch-up or lease overhangs eating into returns.
The moat is real and specific: in-house custom sheet-metal and flashing fabrication that competitors routinely refer out. That vertical capability lets the business win full-scope jobs from premier builders and capture margin that pure installers give away, and it is genuinely hard to replicate without trained fabricators and years of builder trust.
Demand here is non-discretionary and durable. Guttering, flashing, and roofing are protect-the-envelope work that gets done in good times and bad, and 80% of revenue comes from repeat builder relationships rather than one-off retail jobs, which smooths the revenue base through cycles.
The operator advantage is unusual for a $2M trade business: an experienced management team and field leadership are already in place, providing continuity post-close. That means the deal can be run semi-absentee or as a platform for add-ons rather than requiring the buyer to swing a hammer or personally hold the customer relationships.

How to improve it

Install even a modest sales function. The business has grown for 30 years on referral alone with no marketing or sales force, which means there is likely uncaptured demand from builders they have never called on. Adding one commercial rep working the central Indiana builder list could lift revenue meaningfully at high incremental margin.
Formalize and price the fabrication moat. Since competitors refer sheet-metal and flashing work out, the business could open a wholesale fabrication line selling custom pieces to those very competitors, monetizing the capability beyond the installs it already books.
Build a maintenance and service annuity. Layer in seasonal gutter cleaning, inspection, and repair contracts with the existing residential and builder base to convert one-time installs into recurring revenue that supports a higher exit multiple.
Systematize pricing and job costing. A referral-driven shop often leaves margin on the table on bids. Implement estimating software and per-crew profitability tracking within the first 90 days to identify which job types and builders actually drive the 29% margin.
Deepen builder wallet share. With 80% of revenue concentrated in a handful of long-standing builders, map each account and pursue attach opportunities (additional material types, more roofing scope) to grow revenue per relationship before chasing new logos.
Codify the fabrication knowledge. Document processes and cross-train fabricators so the moat does not walk out the door with a key employee. This also de-risks the semi-absentee thesis and protects the exit narrative.

Diligence notes

Verify the $583K cash flow definition and add-backs. Confirm whether owner compensation, personal expenses, and any one-time items are included, and normalize for the cost of a manager or the owner's replaced labor to get a true operating EBITDA the buyer will actually run on.
Stress-test customer concentration. With 80% of revenue through long-standing builders, identify the top five accounts by revenue, how long each has been a customer, and whether any single builder represents a dangerous share. Referral-based relationships can be sticky but can also follow a departing owner.
Assess key-person and management-team risk. The thesis relies on the existing management and field leadership staying. Confirm who holds the builder relationships, whether they are employees or the owner, and what retention or non-compete terms are in place post-close.
Inspect the equipment and vehicle fleet condition. Assets are owned free and clear, which is good, but confirm their age, condition, and remaining useful life so you know the real near-term capex requirement rather than assuming zero.
Confirm licensing, insurance, warranty, and workmanship liability. Roofing and installation carry callback and warranty exposure. Review outstanding warranty obligations, litigation history, workers comp experience rating, and whether required contractor licenses transfer cleanly.

Source

Originally listed on BusinessBroker.net. View original listing →