Established NW Arizona Roofing Contractor, Since 1998, Mohave County

$2.9M

Revenue

$580K

SDE

3.4x

Multiple

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Full Editorial Writeup

This is a full-service roofing contractor operating in Northwestern Arizona since 1998, serving both residential and commercial customers across Mohave County. The company installs a broad mix of roofing systems including concrete and clay tile, single-ply PVC, and TPO, which gives it exposure to both the high-volume residential re-roof market and higher-ticket commercial flat-roof work. A distinctive feature is its in-house tile-loading service, which stages and loads roofing tile ahead of installation, a labor-intensive step most competitors outsource. Keeping that step in-house gives the business direct control over crew scheduling and protects margin.

The numbers are steady rather than flashy: roughly $2.9 million in annual revenue and about $580,000 in SDE, implying a ~20 percent owner-earnings margin, which is healthy for a trades business at this size. The asking price of $1,995,000 puts the deal at 3.44x cash flow, on the higher end for a sub-$1M SDE roofing shop, though the asset base ($350k FF&E plus a substantial truck and equipment fleet) and the founder's willingness to stay on as estimator explain part of the premium.

What makes this notable is the owner's offer to remain indefinitely as a contract employee handling estimating. In a roofing business, estimating is where the margin is won or lost, and losing that expertise on day one is the single biggest post-close risk. Retaining the founder in that seat de-risks the transition materially, but it also signals how central he is to the operation, which is itself something a buyer must plan around.

Why we like it

Earnings quality is solid for the trade: ~$580k SDE on $2.9M revenue is a ~20 percent margin, and the listing claims multiple consecutive profitable years. Roofing cash flow is real, invoice-backed, and tied to a mix of insurance-driven and elective replacement demand rather than one big contract.
The moat is the boring kind that compounds: 27 years of operating history, licensing, established crews, and supplier relationships that a new entrant cannot replicate quickly. The in-house tile-loading capability is a genuine margin and scheduling edge in a tile-heavy Arizona market where most competitors outsource that step.
Roofing is durable through downturns because roofs fail on their own schedule and insurance plus building code force the work regardless of the economy. Storm damage, sun degradation, and mandatory replacements insulate demand far better than discretionary home improvement.
The operator advantage here is unusual: the founder will stay on indefinitely as a contract estimator, preserving the pricing knowledge that actually drives margin in roofing. That converts the biggest transition risk (losing the person who knows how to bid) into a retained asset, letting a buyer focus on sales and crew scaling.

How to improve it

Build a systematized, software-driven estimating process alongside the founder in the first 90 days so his pricing logic is documented, not just resident in his head. Roofing valuations collapse when the estimator leaves, so codifying this into a repeatable playbook protects both margin and eventual resale value.
Push commercial TPO and PVC re-roof work harder, since those jobs carry larger tickets and recurring maintenance relationships with property managers and HOAs. A dedicated commercial account rep could layer predictable, higher-margin revenue on top of the residential base.
Add or formalize an insurance-claims pipeline focused on storm and sun damage, training crews to spot claimable damage and partnering with local adjusters. Insurance-funded jobs shorten the sales cycle and reduce price sensitivity versus cash-pay homeowners.
Layer in a roof maintenance and inspection subscription for commercial clients to create recurring revenue and smooth the seasonal swings inherent in Arizona roofing. Even a modest annual inspection program builds a book of stickier, higher-multiple revenue.
Invest in digital lead generation (local SEO, Google LSA, review generation) since most legacy roofers under-market online. In a growing Mohave County population, capturing more inbound residential replacement leads is low-hanging fruit against competitors who rely on referral only.
Cross-train a second estimator under the founder within year one to remove key-person dependency before the owner's contract role eventually ends. This is the single most important continuity move and directly de-risks the enterprise value.
Tighten fleet and equipment utilization tracking given the substantial truck and equipment base conveyed. Better routing, maintenance scheduling, and crew-per-truck productivity metrics can lift throughput without adding headcount.

Diligence notes

Quantify the founder's actual role in estimating and quoting: what percent of jobs he personally bids, his win rate, and how portable his pricing knowledge is. His willingness to stay is a strength, but you need to confirm the business can eventually run without him and structure his contract compensation and duration accordingly.
Verify the SDE build-up and confirm the ~$580k is normalized and defensible across multiple years, not a single strong year. Request tax returns, job-level P&L, and add-back detail, and understand how much of profit depends on the founder-loaded tile operation versus outsourced labor.
Scrutinize the related-party lease: the seller owns the facility and will lease it to the buyer at $3,500 per month. Confirm lease term, renewal options, rent escalation, and whether that rate is at or below market, since a controlling landlord who is also the retained estimator creates leverage worth negotiating around.
Assess licensing and bonding transfer, since Arizona roofing requires a qualifying party on the contractor license. Determine whether the founder is the license qualifier and what it takes to keep the license valid post-close, because a lapse would halt operations.
Examine crew stability and labor supply: 11 full-time employees in a skilled trade with a tight labor market. Understand tenure, wage rates, foreman dependency, and whether crews are W-2 or subcontracted, as crew loss post-sale would directly cap revenue.
Confirm the true value and condition of the conveyed fleet and $350k FF&E, including age, maintenance history, and any deferred capex. Asset-rich listings can hide near-term replacement costs that erode the effective purchase multiple.

Source

Originally listed on BizBuySell. View original listing →