If you are a roofing business owner, you know that sometimes there can be problems that are difficult to handle, and whether you have specialized in new roofing or in roofing repairing, you might find some difficulties regarding your business administration.
You have to keep that in mind when you decide to sell your roofing business. You must also take into account specific techniques that can make your business worth more.
Check out the next topics and find out how to sell your roofing business for the best price.
What is your Roofing business worth?
If you are interested on selling in your roofing business, first you have to make the proper valuation. Gather finance information from the past years and compile it into a report to provide your potential buyers.
Then, highlight the investments you have done and how they contribute to your business value.
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Roofing business worth more?
However, there are some differentials that must be considered before you set your asking price. These aspects must be taken into account because your business valuation can be even better if you know exactly what makes your roofing business valuable.
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Roofing business sell for?
There has been 49 roofing businesses sales in the past ten years, and despite the average multiple being not that great (smaller than 2), average sales price is huge: over $644k.
It happens because roof repairing or building new roofs, for example, are very expensive services and takes a lot of investment.
What is the most frequent deal size?
Despite the huge average sales price, most frequent deal size — the price you will probably take from your business sale — is only $200k, more than three times smaller.
Most of roofing business sales are small, but there are a few companies that worth millions, as you can see in the chart. That explains why the difference between the average sales price and most frequent deal size is so big.
Is the Roofing market getting bigger?
The years of 2015 and 2014 were not as good as 2013, 2011 or 2009, so it’s correct to say that roofing market is getting bigger. Despite the drop, it is still a very good moment to sell your roofing business.
Are bigger businesses worth more?
Yes! The bigger the business the higher the average multiple, so the higher will also be the profit the roofing business owner will get from the sale.
Usually, bigger businesses invest more in infrastructure and other aspects, so when it comes to selling it, they worth more than those companies which have not invested that much.
What states have the most Roofing business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in Connecticut or Florida, you may get a lot more offers than if you are in Wisconsin or Montana. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer!
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Roofing business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your Roofing business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Roofing, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the roofing industry it may likely be a person who already had a store in the field.
Roofing businesses sales are living an excellent moment, but it has been better in the past. The average sales price is huge, but the price you will probably get from your company sale is expected to be three times smaller.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts.