Roofing co.'s for sale ~3x EBITDA – I am interested in funding the pref...

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April 03, 2024

by an investor from Ivey Business School at Western University in Boca Raton, FL, USA

For those of you self-funded searchers who are considering purchasing a roofing company, please review the below third-party deals trading ~3x EBITDA (figures based solely on the public listings). I would fund ‘zero-rate’ preferred equity at a 2.0x step-up if I like the deal. See below summaries and links to the listings at the bottom:

Nebraska – $4.9M at 0.4x revenue and 1.8x EBITDA of $2.7M Hawaii – $4.9M at 0.9x revenue and 3.2x EBITDA or $1.6M Indiana – $3M at 0.4x revenue and 3.0x EBITDA of $1M Ohio – $2.4M at 0.6x revenue and 2.7x EBITDA of $900k

Nebraska – https://www.bizbuysell.com/Business-Opportunity/lucrative-roofing-business-with-an-80-year-legacy-of-success/###-###-####

Hawaii – https://www.bizbuysell.com/Business-Opportunity/high-profit-roofing-company-with-expansion-opportunities/###-###-####

Indiana – https://www.bizbuysell.com/Business-Opportunity/northern-indiana-union-roofing-company-for-sale/###-###-####

Ohio – https://www.bizbuysell.com/Business-Opportunity/highly-profitable-roofing-business-with-expansion-potential/###-###-####

You can reach me below or at redacted if you review the broker packages and want to discuss the possibility of my funding the preferred equity needs, or if you're otherwise interested in the property services space and want to have an introductory call. I can offer zero-rate preferred equity i.e. no hurdle rate if I'm the sole outside equity. Best, Jeff

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Reply by a professional
from Oregon State University in Kuna, ID, USA
Your numbers look almost identical with what I can pull in DealStats. https://www.searchfunder.com/bvr/sector/473
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Reply by a searcher
from Stanford University in Dallas, TX, USA
Larger transactions would support substantially higher multiples than what is being discussed here. Mix is an important valuation driver as well, so higher repair and maintenance revenue will merit a higher multiple.
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