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This well-established company specializes in seamless gutter installation, gutter covers, and downspouts, with additional services including roofing installation and ice dam removal. Known for its quality workmanship and reliability, the business serves both residential and commercial clients, with growing opportunities in commercial projects and out-of-state contracts.Business Highlights:- Steady year-over-year growth with strong market demand- $650K–$700K EBITDA business with upside to $900K pending verification- 8 fully equipped vans, each with machinery and tools for on-site work- In-house manufacturing of downspouts for efficiency and higher margins- Experienced team of 10 installers plus sales staff- Services both residential and commercial clients, expanding into larger commercial projects- Additional services include roofing installation and ice dam removal- Well-outfitted shop with equipment, tools, and furniture included- Shop property is owner-held — available for purchase or lease with the businessThis is a rare opportunity to acquire a thriving, scalable business in a high-demand industry, complete with strong staff, equipment, and an excellent reputation.
Why we like it
- Earnings quality is anchored in non-discretionary exterior repair work: gutters, downspouts, and ice dam removal are need-to-fix items in a snow-heavy Wisconsin climate, not deferrable cosmetic upgrades. The $650K cash flow on $3.5M revenue implies an 18-19% owner margin, which is healthy for a services contractor. In-house downspout manufacturing adds a structural margin advantage over install-only competitors.
- The moat is operational rather than contractual: an installed crew of 10 installers, dedicated sales staff, 8 fully equipped vans, and in-house manufacturing create a delivery capacity that is hard for a lone competitor to replicate quickly. Reputation for quality workmanship in a referral-driven local trade compounds over time. Vertical control of downspout production removes supplier dependency on that key input.
- Market tailwinds favor the exterior trades: aging housing stock, harsh Midwest weather that forces repeat gutter and roof repair, and steady demand regardless of the broader economy. Roofing and ice dam removal give the business multiple products to sell into the same customer base. The stated push into commercial and out-of-state contracts widens the addressable market.
- Operator advantage is real for a buyer who can systematize sales and scheduling: the business already has crews, equipment, and a manufacturing edge in place, so the growth lever is demand generation rather than building infrastructure. A hands-on owner replacing the current seller's role can protect margin while expanding the commercial and roofing lines. The equipped fleet and shop mean day-one operating capability.
How to improve it
- Pin down and de-seasonalize the revenue calendar in the first 90 days by mapping monthly cash flow, then building a winter-heavy ice dam and gutter guard sales push to fill the slow months. Weather-driven contractors leave money on the table when crews sit idle. Structured off-season offers smooth utilization of the 10 installers.
- Push the higher-margin roofing and gutter cover attach rate on every gutter install visit, since the crew is already on-site and acquisition cost is effectively zero. Track attach rate as a core KPI and tie sales staff comp to it. This is the fastest path toward the claimed $900K EBITDA without new customer acquisition.
- Formalize the commercial pipeline that the listing calls a growth opportunity: commercial gutter and roofing work carries larger ticket sizes and recurring facility relationships. Build a small outbound effort targeting property managers and general contractors. Recurring commercial accounts also smooth the seasonality inherent in residential work.
- Install a modern CRM and job-costing system to measure gross margin by job type (gutters vs roofing vs ice dam removal), because a buyer paying 8x needs to know exactly where the profit comes from. Many contractors this size run on spreadsheets and gut feel. Clean job-level data enables pricing discipline and protects margin as volume grows.
- Lock in the installer crew and sales staff with retention agreements and a defined comp structure before close, since the entire enterprise value rests on labor that can walk. In a tight trades labor market, losing two or three installers post-close would cripple capacity. Consider a stay bonus funded from the transaction.
- Evaluate expanding the in-house manufacturing edge into selling downspout and gutter components wholesale to smaller regional installers. The equipment and shop are already sunk costs. A modest wholesale line could add margin dollars with minimal incremental overhead.
Diligence notes
- Scrutinize the $650K-$700K cash flow figure and the claimed upside to $900K EBITDA, which the listing explicitly flags as pending verification. Get three years of tax returns and reconcile reported cash flow to the P&L, because an 8x multiple on unverified earnings is aggressive. Understand exactly what add-backs and future projections underpin the $900K number.
- Clarify the real estate structure carefully: the shop property is owner-held and available for purchase or lease separately from the asking price. Confirm whether $5.25M is operations-only and what the lease terms or additional purchase price for the building would be. A market-rate lease is a real ongoing expense that must be modeled into cash flow.
- Quantify the seasonality and weather dependence of revenue by month over multiple years, since Wisconsin winters drive both demand spikes (ice dams) and installation slowdowns. Understand how the business covers fixed labor and overhead during slow periods. A single mild winter could materially dent the ice dam and gutter repair revenue line.
- Assess key-person and labor concentration risk: identify how much of sales and customer relationships run through the current owner, and how stable the 10-installer crew is. Verify licensing, workers comp history, and any pending liability from roofing or ice dam work. Get customer concentration data to confirm no single commercial account dominates revenue.
- Inspect the condition and ownership of the 8 vans and manufacturing equipment, confirming they are owned free and clear and included in the price versus leased or financed. Estimate near-term capex for fleet replacement, since aging vans could be a hidden cost. Verify the in-house manufacturing equipment is fully functional and not near end of life.
Source
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