Full-Service Roofing, Solar & Energy Contractor, Western US

$20.4M

Revenue

$2.7M

SDE

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Full Editorial Writeup

This is an integrated roofing and energy contractor operating across a large Western US market, delivering roofing, solar, battery storage, and electrical work under a single licensed entity. The business serves residential, multifamily, and B2B clients, running two channels: direct-to-homeowner jobs and subcontracted work for national roofing and energy companies under master service agreements. The anchor relationship is an MSA with Sunrun, one of the largest solar installers in the country, backed by certified Owens Corning roofing status. The majority of revenue comes from multifamily residential roofing and solar projects.

The company self-performs project management across multiple trades that most contractors handle one at a time. That integrated scope is a real structural edge in a fragmented market where the typical competitor is a single-trade operator. The entity holds all state contractor licenses and professional certifications across general, roofing, electrical, solar, and HVAC scopes, and those licenses are transferable to a buyer, which removes a common deal-killer in the trades.

At roughly $20.4M in revenue and $2.72M in EBITDA, this is a sizable, profitable contractor with a 33.7% average gross margin from 2023 to 2025. The business operates from a 10,188 sq ft leased facility with an assumable lease. The owner wants to stay on post-sale, which is a signal of continued belief but also a dependency to underwrite carefully.

Why we like it

Earnings quality is solid for a contractor at this scale: $2.72M EBITDA on $20.4M revenue is a 13.3% EBITDA margin, with a consistent 33.7% gross margin held across 2023 to 2025. Multi-year margin stability through a period of rate volatility suggests disciplined project selection rather than one lucky year.
The moat is the integrated license stack and the Sunrun MSA. Carrying general, roofing, electrical, solar, and HVAC licenses under one transferable entity lets the company self-perform combined scopes that single-trade competitors cannot bid on, and the Owens Corning certification plus national relationships create switching friction for the subcontracted channel.
Market tailwinds are genuine here: roofing is replacement-driven and non-discretionary, aging multifamily building stock forces reroofs on a schedule, and the Western US is one of the largest solar and storage markets in the country. Battery storage and virtual power plant programs add a structural growth leg on top of the core roofing demand.
The operator advantage is a clean platform for a roll-up or add-on. A buyer gets a licensed multi-trade base with national accounts already in place, which is far cheaper to acquire than to build, and the fragmented single-trade competitive landscape offers obvious tuck-in targets.

How to improve it

Build out a dedicated maintenance and O&M line across the installed base of roofs, solar arrays, and storage systems. This converts one-time project clients into contracted recurring revenue, smooths the project-driven revenue cycle, and lifts the exit multiple by adding predictability that pure installation work lacks.
Diversify beyond the Sunrun MSA by signing additional national energy and roofing partners within the first 90 days of outreach. Single-partner concentration is the biggest risk to this cash flow, and broadening the partner base both reduces that exposure and expands the addressable pipeline.
Lock in multifamily operators and larger developers on multi-property roofing agreements rather than bidding job by job. Aging multifamily stock creates a predictable reroof cadence, so a preferred-vendor relationship across a portfolio turns sporadic projects into a steady, high-visibility backlog.
Lean harder into battery storage and VPP enrollment, which carry higher margins than straight roofing and ride a growing resilience demand wave. Package storage as an attach to every solar and reroof job to raise average ticket size with minimal incremental acquisition cost.
Reduce owner dependency by documenting project management workflows and promoting or hiring a general manager before close. The seller wants to stay, but the business should be able to run without him, and formalizing the org protects the buyer and preserves value.
Deploy AI-assisted estimating, reporting, and scheduling tools to tighten project execution and labor productivity. In a 33.7% gross margin trade business, even a couple of points of efficiency on project management drops straight to EBITDA.

Diligence notes

Quantify Sunrun MSA concentration as a percentage of revenue and gross profit, and review the actual contract terms including termination clauses, exclusivity, pricing, and renewal history. Given the MSA is described as the anchor relationship, this is the single most important item: a revenue-concentrated subcontractor to one national account is a different risk profile than a diversified contractor.
Verify that all entity-level licenses across general, roofing, electrical, solar, and HVAC are genuinely transferable without requiring a qualifying individual to remain. If licenses are tied to the owner personally rather than the entity, the owner's stated preference to stay becomes a dependency, not a choice, and could complicate a clean handoff.
Scrutinize working capital and backlog quality: contractors at this scale can show strong EBITDA while being cash-hungry due to retainage, progress billing, and job WIP. Review the backlog pipeline, change-order history, warranty reserves, and any outstanding liens or disputed jobs to confirm the earnings are real and collectible.
Separate the economics of the subcontracted channel versus direct-to-homeowner work, since margins and customer acquisition costs differ sharply. Understand which channel drives the 33.7% gross margin and whether the growth opportunities assume a mix shift that changes profitability.
Confirm the absence of real estate in the deal and review the assumable facility lease terms, remaining term, rent escalators, and whether the 10,188 sq ft space is adequate for the growth plan. Also validate solar incentive and tax-credit exposure given recent federal policy changes that affect residential and multifamily solar demand.

Source

Originally listed on BizBuySell. View original listing →