Northeast South Dakota Roofing Contractor, Non-Storm-Chasing Operator

Full Editorial Writeup

This is an established roofing contractor serving the northeast region of South Dakota, doing roughly $4.8M in trailing-twelve-month revenue with a clean 13.2% net margin, which pencils out to $892K of owner cash flow. The business has grown consistently over the past three years, runs a crew of 12 full-time employees, and leans on established subcontractor relationships plus a trailer for field operations. There is no real estate in the deal, the facility is leased, and the physical asset base is light.

What separates this operation from a lot of roofing comps is the stated non-storm-chasing model. Storm-cycle roofers live and die by hail and wind events, which makes revenue lumpy and multiples volatile. A contractor generating consistent double-digit growth off replacement and re-roofing demand rather than chasing insurance claims across state lines is a more durable, more financeable cash flow, and it is the kind of boring, essential-service business that holds up when the economy softens.

The seller is retiring and willing to structure a handover, which matters in a trade business where relationships with subs, suppliers, and repeat referral sources carry real value. At a 2.13x multiple on $892K of cash flow, this is priced below the 2.5x to 3.5x range the listing itself cites for comparable non-storm-chasing roofers, which is either a genuine value gap or a signal that owner dependence and durability need a hard look in diligence.