EBITDA Multiples in the Roofing Contractor Industry

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December 31, 2024

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Palo Alto, CA, USA

Hello Searchfunders,

I’m getting close to submitting an LOI for a ~10M revenue ~1.2 M EBITDA Florida based roofing contractor and am looking for reliable benchmarks for EBITDA multiples within this industry. If you have insights, relevant reports, or personal experience in evaluating businesses in the roofing sector, I’d greatly appreciate your input!


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commentor profile
Reply by a professional
from Columbia University in Charlotte, NC, USA
Paid 2x EBITDA in cash and 1.25x in seller note for North Carolina residential roofing platform.
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Reply by a searcher
from Massachusetts Institute of Technology in Auckland, New Zealand
And let me do a simple calculation for you so you understand: Let's say the rev is 10M and they have###-###-#### roofers, and 5-6 sales/account managers to make the sale. That means each of them only need to do 1-2 deals PER MONTH for roof replacement to make up that 10M rev. If they only have 3-4 account managers, then each of them need to make 2-3 or maybe 4 sales PER MONTH for roof replacement. They must have other services like repair and wash etc to make up rev. By the way, this industry is extremely profitable like at least 40% margin, how the hell do they only have 1.2M EBITA? Simply put: if those sales manager only be able to bring 20K-40K profit per month, someone is extremely bad in the management. Lastly, do you know how I know it? Because I just did 8 months outsourcing contract job in this industry by myself and I am doing 60-80K profit per month just as part time.
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