Established Florida Roofing Contractor, Residential & HOA/Condo Specialist

$20.9M

Revenue

$4.3M

SDE

3.1x

Multiple

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Full Editorial Writeup

This is a Florida-based roofing contractor doing roughly $20.9M in revenue and $4.3M in cash flow, a 20.6% margin that is strong for the trade. The business serves both residential homeowners and commercial-adjacent clients like HOAs and condominium associations, which in a state defined by hurricanes, hail, and aging condo stock is about as durable a demand base as roofing gets. The listing emphasizes a trusted brand name and a stellar reputation, which in a fragmented, referral-driven trade is the closest thing to a moat you will find.

Roofing in Florida sits at the intersection of two powerful tailwinds: constant weather-driven replacement demand and post-Surfside regulatory pressure forcing condo associations to fund and complete deferred structural and roof work. That HOA and condo channel is a repeatable, high-ticket revenue stream that is less cyclical than one-off residential jobs because associations must reserve for and execute major repairs on a schedule.

At $13.5M asking against $4.3M cash flow, the deal prices at 3.13x, which is reasonable to slightly rich for a roofing services business depending on how owner-dependent the revenue is and how much of it is recurring versus storm-chasing. The business is already under LOI, so this is a benchmark read more than a live opportunity, but the shape of it, essential service, strong margin, sticky institutional customers, is exactly what a durable cash-flow buyer wants.

Why we like it

Earnings quality is genuinely strong: $4.3M cash flow on $20.9M revenue is a 20.6% margin, well above the mid-teens that many roofers run. That kind of margin usually signals real pricing power, disciplined job costing, or a favorable mix toward higher-value HOA and condo work rather than commodity residential bids.
The moat here is reputation plus channel. Roofing is a trust-and-referral business, and a trusted name with HOAs and condominium associations creates repeat, specified work that competitors cannot easily undercut. Associations tend to re-hire contractors they know, especially in Florida where warranty performance and permitting knowledge matter.
The market tailwinds are structural, not speculative. Florida roofing is fed by relentless storm and sun damage plus post-Surfside condo reserve mandates forcing associations to actually fund and complete roof and structural work. Demand does not disappear in a recession because a failing roof is not a discretionary purchase.
This is a recession-resistant essential service with scalable characteristics. Roof replacement and repair get deferred at most, not cancelled, and insurance frequently funds the work. An operator who can add crews and geographic coverage can grow the top line without reinventing the model.

How to improve it

Audit and formalize the HOA and condo pipeline within the first 90 days. Build a rolling list of associations with roofs approaching end of life and reserve studies coming due, then get on their bid lists early. This converts reactive storm work into a predictable, backlog-driven revenue stream.
Layer in a maintenance and inspection recurring revenue program. Offer annual roof inspection and minor-repair contracts to existing residential and association clients, which smooths cash flow between large jobs and keeps the brand in front of decision-makers before the next replacement cycle.
Tighten job-costing and crew productivity tracking. With a 20.6% margin already, small gains in material waste, callbacks, and labor utilization drop straight to the bottom line. Install per-job P&L reporting so you can see which job types and crews actually make money.
Build a systematic insurance-claims and financing capability. Homeowners and associations increasingly fund roofs through insurance and financing, and a contractor that helps clients navigate claims and offers financing at the point of sale closes more jobs at higher tickets.
Reduce owner dependence by documenting estimating and sales processes. If the current revenue leans on the owner's relationships and bidding judgment, codify that into playbooks and hire or promote a sales/estimating lead. This de-risks the business and is essential before any add-on acquisitions.
Explore a tuck-in acquisition of a smaller local roofer to add crews and coverage. In a fragmented trade, buying a competitor's book and installers is often cheaper than organic hiring, and consolidating overhead and buying power lifts margins across the combined entity.
Invest in digital lead generation and reviews to complement referrals. A structured review-generation and paid-search program in target Florida markets diversifies the pipeline beyond word of mouth and supports higher-margin residential replacement volume.

Diligence notes

Interrogate the revenue mix and how much is storm or catastrophe driven. A big spike from a recent hurricane season could inflate the trailing $20.9M and $4.3M, so normalize earnings across at least three years to understand the sustainable run rate versus one-time event revenue.
Quantify owner dependence and the source of the trusted name. Determine whether the relationships, estimating, and key HOA accounts sit with the owner personally or with an institutionalized team, because that dictates transition risk and the real multiple you should pay.
Scrutinize warranty exposure, callbacks, and open litigation. Florida roofing carries real warranty and workmanship liability, especially on condo and HOA jobs, so review warranty reserves, historical callback costs, and any pending claims or disputes tied to prior work.
Verify licensing, insurance, and labor structure. Confirm the contractor licenses transfer cleanly, review workers comp and general liability history and mods, and determine whether crews are W-2 or subcontracted, since misclassification and insurance gaps can create hidden liabilities.
Assess customer and job concentration. Understand how much revenue comes from the largest HOA and condo accounts and whether any single client or referral source represents an outsized share, since concentration would justify a lower price and more earnout structuring.
Confirm working capital and backlog at closing. Roofing ties up cash in materials and progress billings, so pin down the normalized working capital peg and verify the signed backlog and deposit obligations transferring with the business.

Source

Originally listed on Sunbelt Business Brokers. View original listing →