Midwest Roofing & Exterior Platform - Asset-Light Re-Roofing

$15.6M

Revenue

$5.0M

SDE

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Full Editorial Writeup

This is a residential roofing and exterior contractor operating in an Illinois Midwest corridor, founded in 2011 and generating roughly $15.6M in 2025 revenue with approximately $5M in EBITDA. That is a 32 percent EBITDA margin, which is genuinely exceptional for a roofing business and immediately worth verifying. The model is asset-light and built on subcontracted labor, meaning the company carries low fixed headcount and avoids the heavy equipment, fleet, and crew overhead that drags margins at most roofing operations.

The business serves both re-roofing and maintenance demand as well as new construction, with the seller framing re-roofing as a data-driven, recurring revenue stream. Roofing is one of the more durable home-services niches because storm damage, age, and insurance-driven replacement cycles create demand regardless of the economy. A roof that is leaking gets fixed in any market.

The seller is retiring and has positioned this as a platform for private equity buy-and-build or institutional consolidation. With only $500K in FF&E included and seller financing available, the value here is in the brand, the subcontractor network, and the demand-generation engine rather than hard assets. The lack of disclosed asking price and years-of-detail means the headline margin needs heavy scrutiny before any of this thesis holds.

Why we like it

Earnings quality looks outstanding on paper at $4.99M EBITDA on $15.6M revenue, a 32 percent margin that is roughly double a typical roofing contractor. If real and sustainable, that margin reflects either premium pricing power, a lean subcontractor model that strips out crew overhead, or strong insurance-claim economics, all of which are worth paying up for.
The asset-light subcontracting structure means low fixed cost and high incremental margins on each incremental job. This is the kind of capital-efficient model Wilkinson loves because you compound cash without sinking it into fleets, depots, and W-2 crews that get expensive in a downturn.
Roofing demand is genuinely recession-resistant since replacement is driven by storm damage, age, and insurance claims rather than discretionary spending. The re-roofing and maintenance mix gives a recurring, non-deferrable revenue base that holds up when consumer wallets tighten.
Seller financing is on the table and the owner is retiring, which signals motivation and a clean exit narrative. A retiring seller plus paper means you can structure downside protection into the deal and align the seller through a transition.

How to improve it

Build a proprietary insurance-claim and storm-tracking pipeline within the first 90 days to systematize lead capture after weather events. The listing hints at a data-driven re-roofing approach, so doubling down on storm-response marketing and adjuster relationships can drive predictable demand spikes.
Tighten and diversify the subcontractor network so the business is not exposed to a handful of crews. Sign volume commitments and quality SLAs with multiple sub teams to protect margin and capacity as you scale job volume.
Add commercial and multi-family re-roofing alongside the residential base to smooth seasonality and increase average ticket size. Commercial flat-roof and maintenance contracts create recurring revenue that residential storm work does not.
Implement a financing-at-point-of-sale offering for homeowners to lift close rates and average job value. Roofing is a high-ticket distress purchase, and consumer financing partners can meaningfully expand the addressable buyer pool.
Use this as a roll-up platform by acquiring smaller owner-operated roofers in adjacent Midwest corridors. The asset-light model and strong margin make it a natural buy-and-build hub where you can consolidate overhead and back-office functions.
Professionalize the management layer so the business is not dependent on the retiring owner's relationships. Document the demand engine, pricing playbook, and sub-management processes to make the company transferable and institutionally fundable.

Diligence notes

Scrutinize the 32 percent EBITDA margin relentlessly, because it is roughly double the roofing norm and is the single biggest risk in this deal. Confirm whether the EBITDA add-backs are aggressive, whether owner labor is fully accounted for, and whether subcontractor costs are properly captured rather than netted out.
Verify revenue concentration and the storm-driven nature of sales, since a single big hail season can inflate a year. Pull three to five years of monthly revenue to separate recurring re-roofing demand from one-time weather windfalls that will not repeat.
Examine the subcontractor model for legal and operational fragility, including worker-classification risk, warranty liability, and lien exposure. An asset-light roofer lives and dies by its sub network, so confirm crews are reliable, insured, and not concentrated.
Investigate the insurance-claim dependency and reimbursement dynamics that may be propping up margins. If a large share of jobs are insurance-funded, understand how claim rates, deductible practices, and any regulatory scrutiny could affect future volume.
Confirm the actual owner role and how much of the business runs on the seller's relationships and reputation. The listing claims a turnkey structure, but a retiring founder often is the rainmaker, so test how revenue holds without them.
Get the undisclosed asking price and validate the implied multiple against the verified, normalized EBITDA. Without a price the deal cannot be underwritten, and the headline margin should drive a conservative multiple until proven durable.

Source

Originally listed on BizBuySell. View original listing →