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This is an Omaha-based roofing contractor established in 2015, built around higher-end, technically complex residential work with select commercial jobs. Its bread and butter is insurance and storm restoration volume, complemented by shake roofing, specialty materials, and custom metalwork. The business also captures adjacent exterior services that often ride along inside the same insurance claim, which lets it monetize a single storm event across multiple line items.
The company runs lean: five full-time employees plus seven contractors, a 7-12 person core crew, and an on-site field manager. It carries manufacturer certifications from leading brands and leans on referral and review-driven demand rather than paid marketing. Facilities are minimal, roughly 1,300 square feet of leased office and storage, which keeps overhead low and margins healthy.
The positioning matters. Nebraska is one of the worst hail states in the country (roughly 70,000 homes hit in 2024, second only to Texas), and the state carries the highest average all-peril loss cost over the last seven years. That means recurring, weather-driven replacement demand. What stands out is that the business held earnings through a softer 2026 storm season, suggesting a reputation-based base of work that is not purely storm dependent.
Why we like it
- Earnings quality is strong for the size: $632,829 of cash flow on $2.5M revenue is a 25% owner-earnings margin, well above typical roofing comps. The $512,829 EBITDA figure shows meaningful profitability even after normalizing owner add-backs, and the asset-light footprint (1,300 sq ft leased) means little capital is trapped in the operation.
- The moat is reputation plus certification in a premium niche. The business specializes in shake, specialty materials, and custom metalwork that storm-chasers and volume shops cannot execute, and it holds manufacturer certifications with leading brands. Referral and review-driven demand with minimal paid marketing means customer acquisition cost is near zero and hard for competitors to replicate.
- Market tailwinds are structural, not cyclical. Nebraska ranks second nationally in hail-damaged homes and carries the highest all-peril loss cost of any state over seven years, creating a recurring replacement cycle that resets every storm season. RCV-to-ACV schedule step-downs at 10-15 years add urgency for homeowners to replace before coverage erodes, pulling demand forward.
- The operator advantage is clean scalability. Lead flow is inbound and referral-based, so adding one or two dedicated sales reps and additional crews converts existing demand into revenue without reinventing acquisition. Insurance agent and carrier channel development, plus commercial and custom-builder diversification, are logical bolt-ons a capable operator can execute.
- Downside is partially protected by evidence of a non-storm base. The listing notes the business sustained earnings through a soft 2026 regional storm season, which is the single most reassuring data point here. It suggests the referral engine and premium clientele generate work even when hail is quiet, reducing pure weather dependence.
How to improve it
- Hire one to two dedicated sales professionals in the first 90 days to work the existing inbound and referral lead flow. The owner has clearly been the bottleneck on sales conversion, and adding closers lets you monetize demand that is already walking in the door without new marketing spend.
- Build a formal insurance-agent and carrier referral program. Storm restoration lives and dies on being the contractor an adjuster or agent recommends, so a structured relationship program with local agents turns one-time claims into a repeatable channel and smooths storm-cycle volatility.
- Lean into Class 4 impact-resistant roofing as a retail upgrade sell. Carriers discount premiums 10-25% for Class 4 roofs, which is a compelling homeowner pitch that aligns directly with the company's specialty capabilities and creates demand independent of active storm claims.
- Systematize claim documentation and scope defense. With aerial and AI-assisted underwriting reducing approvals per storm, the contractors who document and defend scope win more approved dollars per job. Standardizing this process protects revenue per claim as carriers tighten.
- Diversify into commercial and custom builder work to reduce residential storm dependence. The listing flags this as a growth lane, and adding a steadier commercial book counterbalances the lumpy nature of residential storm restoration and improves revenue predictability.
- Reduce contractor reliance by converting key subs to core crew where the math works. Seven of twelve workers are contractors, which introduces execution and quality risk in a reputation-driven business; bringing the best performers in-house protects the warranty and referral engine that drives demand.
- Formalize the referral and review flywheel with a structured post-job ask and reputation management. Demand is already review-driven, so a disciplined process to capture reviews and referrals at project completion compounds the lowest-cost acquisition channel the business has.
Diligence notes
- Scrutinize storm-year revenue seasonality across the last five years. Roofing restoration is inherently lumpy, so pull annual revenue and cash flow by year to confirm the claim that earnings held through the soft 2026 season and to understand how much of $2.5M is baseline versus storm-driven windfall.
- Verify the $632,829 cash flow add-backs and the gap to $512,829 EBITDA. Understand exactly what the owner is adding back, how much of that is true owner compensation versus discretionary, and what a replacement sales and production leader would cost if the owner has been driving revenue personally.
- Assess concentration and durability of the insurance channel. Storm and insurance work is the largest volume source, so confirm how relationships with agents and adjusters are held, whether they follow the owner personally, and how tightening underwriting (aerial, AI, cosmetic exclusions) is trending on approvals per storm.
- Test the contractor labor model and crew stability. With seven of twelve workers as contractors and a single on-site field manager, confirm crew retention, worker classification compliance, and whether the field manager stays post-sale, since execution quality directly feeds the referral moat.
- Confirm manufacturer certifications transfer to a new owner. The premium positioning depends on certifications with leading brands, so verify these are held at the entity level and survive a change of control rather than being tied to the departing owner personally.
- Review the seller financing terms and the reason for selling. The owner wants to pursue other opportunities rather than retire, so understand the note structure, personal guarantees, and whether the seller's continued goodwill (introductions to agents and referral sources) can be tied to the earnout or transition.
Source
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