3d • General discussion
Just reviewed a quiet but very solid deal in home services.
Not flashy. Not tech. But strong cash flow + real upside.
• The market: Residential roofing
• The target: High-end homeowners in the Bay Area
Let me break it down 👇
This business has been operating for 20+ years and built its reputation almost entirely on trust and referrals.
No ads.
No social.
Mostly word of mouth.
That alone tells you something.
What do they actually do?
Residential re-roofing, inspections, repairs, gutters, emergency work.
~50% of revenue comes from real estate inspections and repair jobs tied to home sales. That keeps work steady even when big projects slow.
Client profile matters here.
Homes are typically $1M–$15M+.
Customers care more about quality than price.
This supports margins and repeat work.
Now the numbers (this is where it gets interesting):
• Avg revenue (last 3 yrs): ~$2.1M
• Avg adjusted EBITDA: ~$400K+
• Asking price: ~$1.5M
• Multiple: ~3.6x
• Projects/year: ~200
• Avg ticket: $20K–$100K
This is not a volume game.
It’s a premium service business.
Team is another big plus:
~13 W2 employees Experienced roofers, long tenure No contractor chaos Payroll is clean, systems are simple
Financially, the business is healthy:
• No supplier debt
• Net 0 terms with main vendors
• Customers pay 50% upfront, 50% on completion
Cash flow discipline is strong.
Why is the owner selling? Retirement.
Owner is willing to stay 1–2 years for transition, help with licensing, relationships, and handover.
That lowers execution risk a lot.
What I like as an analyst:
• Referral-driven demand
• Strong real estate agent relationships
• Premium customer base
• Survived 2008 + COVID
• No legal issues
• Clean books
Where can it improve?
• Very old-school tech (Excel, PDFs, QuickBooks)
• No CRM, no estimating software
• No digital marketing at all
• Limited geography by choice
• No weekends (agents are active then)
These are not problems — they’re levers.
With a motivated operator, you could:
• Expand service area
• Add light commercial work
• Improve pricing + job costing
• Add basic marketing + systems
• Reduce owner dependency
Owner even believes revenue could be doubled with same base.
I wouldn’t model crazy growth, but 1.5–2x over time feels realistic.
Risks to note:
• Some earnings dip in recent years (market-related)
• Owner still important today
• Licensing transition must be handled correctly
Nothing scary — but needs an operator, not absentee owner.
Who this deal fits best:
• Searcher / SBA buyer
• Operator who knows home services
• Someone who wants stable cash flow + upside
• Roll-up platform looking for a premium anchor asset
This is not a hype deal.
It’s a boring, honest, cash-producing business — and those are usually the best ones.
Want the full IM and my deeper notes?
Comment “roof” and I’ll DM you the details
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Just reviewed a quiet but very solid deal in home services.
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