Multi-State Residential Roofing Company, 8 Locations Across Mid-Atlantic & Northeast

$33.0M

Revenue

$4.3M

SDE

5.8x

Multiple

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Full Editorial Writeup

This is a scaled residential roofing operation running across 8 locations in the Mid-Atlantic and Northeast, built on an asset-light model. Instead of carrying a heavy payroll of installers, the company runs with just 9 W-2 employees, 59 commission-based sales reps, and subcontracted installation crews. Each regional market is led by a Vice President accountable for local sales and performance, while ownership sits above the field managing strategy and VPs rather than day-to-day operations.

The financials reflect a business with real scale: approximately $33M in projected 2026 revenue (about $22M YTD at the time of listing) and $4.3M to $4.4M in projected adjusted EBITDA. Management notes that 2026 margins improved meaningfully after operational streamlining, which is worth probing since it means the current earnings run-rate is young. The lean structure plus a repeatable market-entry playbook is the real asset here, positioning this as a platform rather than a single-market contractor.

The seller is explicitly targeting a strategic roofing or home-services acquirer, a private equity group, or a well-capitalized buyer who wants an established multi-market footprint with finance, HR, and operations infrastructure already built. At a 5.75x cash flow multiple on roughly $4.3M, the ask of $24.7M prices this as a platform acquisition, not a bolt-on bargain.

Why we like it

Earnings quality sits at roughly $4.3M to $4.4M adjusted EBITDA on $33M revenue, a healthy 13% margin for a residential roofing shop. The commission-based sales and subcontracted install model keeps fixed cost low, with only 9 W-2 employees carrying the overhead, which protects downside when storm cycles slow.
Roofing is a need-not-want category: when a roof fails, homeowners replace it regardless of the macro environment, and insurance claims drive a meaningful share of demand. This makes the core service genuinely recession-resistant versus discretionary home-improvement spend that gets deferred in a downturn.
The 8-location, VP-led structure with a documented market-entry playbook is the real prize. A strategic or PE buyer gets a replicable expansion engine with finance, HR, and ops infrastructure already in place, meaning the next few markets cost far less to stand up than building from scratch.
Ownership already operates above the field, overseeing VPs and strategy rather than running crews. For a well-capitalized operator this is close to a plug-and-play platform where the acquirer can focus on capital allocation, M&A, and margin discipline rather than learning to hang shingles.

How to improve it

Add recurring revenue through roof maintenance plans, gutter and inspection subscriptions, and warranty-backed service contracts. Converting even a fraction of completed-job customers into an annual recurring relationship would smooth the lumpy project-based revenue and raise the exit multiple materially.
Tighten the subcontractor supply chain by locking in preferred crews with volume commitments and standardized quality SLAs. Subcontracted installation is efficient but introduces execution and warranty risk, so formalizing the labor base protects margin and brand reputation as volume grows.
Lean harder into insurance-driven storm restoration work, which carries strong margins and non-discretionary demand. Building a dedicated claims and adjuster-liaison function across all 8 markets can capture more of this high-value segment that homeowners rarely defer.
Validate and then systematize the 2026 margin improvement so it is durable, not a one-time cleanup. Codify the operational changes into SOPs across every region so new markets inherit the improved cost structure rather than re-learning it.
Invest in CRM, lead attribution, and sales analytics across the 59-rep commission force to lift close rates and cost-per-acquisition. Small gains in rep productivity across a large sales team flow straight to EBITDA given the lean fixed-cost base.
Build a disciplined bolt-on acquisition pipeline to roll up single-market roofers into the existing infrastructure. The company already has the finance and HR backbone to absorb tuck-ins, and buying smaller shops below 5.75x creates immediate multiple arbitrage.
Diversify beyond primarily residential into light commercial and multifamily roofing where contract sizes are larger and relationships are stickier. This hedges single-family storm dependency and opens repeat institutional buyers.

Diligence notes

The entire valuation rests on PROJECTED 2026 numbers, with only $22M YTD actual revenue and EBITDA described as projected adjusted. Insist on trailing twelve-month audited or bookkeeper-prepared financials and a reconciliation of every EBITDA adjustment before accepting the $4.3M figure.
Scrutinize the 2026 margin jump attributed to operational streamlining. A sudden profitability improvement right before sale is a classic flag, so confirm the gains are structural and repeatable rather than deferred maintenance, under-investment, or one-time cost cuts that will reverse post-close.
Stress-test the subcontractor and 1099 sales-rep model for worker-classification risk across multiple states. With 59 commission reps and subcontracted crews but only 9 W-2 employees, misclassification exposure, licensing, and bonding compliance per state could create real liabilities.
Assess customer concentration, storm-cycle dependency, and the mix of insurance versus retail revenue. Roofing demand can be heavily tied to weather events in specific markets, so understand how much of the projected $33M depends on favorable storm activity.
Evaluate key-person and VP retention risk since each market lives or dies by its local Vice President. Lock in employment agreements, non-competes, and incentive structures for the VPs as a closing condition, because their departure would gut regional performance.
Confirm what hard assets, licenses, and warranties actually transfer and whether outstanding workmanship warranties create a long-tail liability. Pull a list of open warranty claims and litigation across all 8 locations to size potential post-close exposure.

Source

Originally listed on BizBuySell. View original listing →