Warning: $2M roofing co with 15% profit, but is it licensed right?
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CanvasKid
·3d·66 replies·65 participants
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CanvasKid⭐ ExpertOP3d
190
Hey all, eyeing a buyout on this roofing outfit pulling $2-3M a year, mostly from a couple big HOA and commercial shingle jobs using GAF materials. Seller's bragging 15% profit but I gotta make sure their licenses and certs are solid - don't wanna get burned on OSHA roofing certs or state contractor licenses that lapsed. Anyone got red flags to watch for in due diligence?
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ChillMasterHV👑 Legend3d
42
Nailed a similar deal last year, 18% margins after we cleaned up the books.
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DustBunnyBoss2⭐ Expert3d
85
same here man, buying that company changed everything for the better.
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DirtBagLandscaper3🏆 Master3d
84
felt that, been in your shoes with the uncertainty.
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CanvasCrusader👑 Legend3d
38
Check their workers comp history on roofing crews, I had one that hid claims and it bit me.
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BoxHauler4⭐ Expert3d
40
Verify the roofing contractor license renewal dates with the state board.
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TenYearVet6👑 Legend3d
46
Ask for proof of NRCA certification too, makes a big difference in bids.
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WireWizard12⭐ Expert3d
36
Look at their bond amounts, should be at least 10k for roofing ops.
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BenderBuddy🏆 Master3d
47
Pull insurance certificates going back 5 years, no gaps.
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WrenchWarrior👑 Legend3d
25
Yeah, and cross check with DOT for any vehicle violations on roof hauls.
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LockPickLarry3🏆 Master3d
46
Labor market sucks right now, takes 2-3 months to line up reliable shingle crews.
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RoachRidder🏆 Master3d
33
Market's hot for large HOA roofs, but subs flake in winter.
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NotAnElectrician23⭐ Expert3d
46
For snow areas, they push sales in summer for fall installs, winter is estimating season.
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EaveEater2⭐ Expert2d
41
Large projects book 6-9 months out, don't let them take long breaks.
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CoolantKing⭐ Expert2d
29
Subs come back if you pay on time, otherwise ghost.
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SlateSlinger5⭐ Expert2d
24
Everyone bitches about seasonality in roofing.
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TintTitan⭐ Expert2d
36
Insurance companies are screwing us with higher premiums every year.
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RollerRogue4⭐ Expert2d
19
PE firms buying up roofing cos left and right, killing the little guys.
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WireWhiz2⭐ Expert2d
36
Just laughed at a crew trying to slate a roof drunk, total crap-show.
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DirtBagLandscaper⭐ Expert2d
44
Man, that acquisition stress is real, hang in there.
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DrainDiver7⭐ Expert2d
81
Been there, the what-ifs keep you up at night.
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SparkPlugSue4🏆 Master2d
32
Sub labor is a nightmare, hard to find guys who show for flat roof jobs.
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LiftMaster⭐ Expert2d
23
Took me 4 months last time, and half bailed mid-project.
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GarageGuruGus⭐ Expert2d
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These big revenue roofers with few clients? Risky as hell if one walks.
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FlangeFanatic⭐ Expert2d
54
Yeah, 30% from two customers is a red flag, diversify or die.
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RoofRat887🏆 Master2d
36
Sorry dude, sounds like a headache waiting to happen.
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SodSoldier⭐ Expert2d
26
Empathize, my last buy was a mess too.
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WireWizardWalt👑 Legend2d
57
Ask about their safety record, roofing falls are no joke.
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NewbieNailBanger⭐ Expert2d
8
What kinda margins are you aiming for post-buy?
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VentMaster5⭐ Expert2d
26
Check for any liens on past shingle supply accounts.
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LockPickLarry3🏆 Master2d
47
And audit the payroll for off-book laborers.
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SpraySquad2🏆 Master2d
26
We hit 20% after streamlining cert renewals.
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WattTheHeck16⭐ Expert2d
28
Don't do the deal without a full audit, saved my ass once.
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FrostBiteFred🏆 Master1d
29
State boards are the worst, dragging their feet on roofing licenses.
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RollerRanger8🏆 Master1d
22
Question their sub contracts, make sure they have hold-harmless clauses.
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BugBlaster4🏆 Master1d
44
Verify GAF master elite status, it's gold for credibility.
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NailBender🏆 Master1d
9
Ask how they handle winter downtime, do they pivot to gutters?
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RodentRider2⭐ Expert1d
24
Large projects in snow zones get bid in winter for spring start.
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AmpedApprentice2⭐ Expert1d
36
Labor shortage means paying 20% more for skilled roofers now.
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WattTheHeck5🏆 Master1d
46
Seen too many deals tank over hidden OSHA fines.
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KeyMasterKate🏆 Master1d
8
How's the seller financing it? That's key.
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ChillMaster⭐ Expert1d
38
Customer called mid-storm wanting a free roof check, hilarious.
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JackOfAllTrades4🏆 Master1d
27
Don't skip the environmental certs for asphalt shingle waste.
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SpringBreaker2🏆 Master1d
38
Insurance hikes are killing roofing margins this year.
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TenYearVet19⭐ Expert1d
35
Ask for 3 years of tax returns, spot the real profit.
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FridgeFixer⭐ Expert1d
47
Man, acquisitions like this fried my brain last time.
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BrushStrokeBoss7⭐ Expert1d
45
PE roll-ups are gobbling small roofers, watch out.
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ShingleSharkSam⭐ Expert1d
27
Yeah, they lowball and strip the value.
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ShingleShark13⭐ Expert1d
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What questions you got on their crew retention?
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HaulHero2⭐ Expert1d
33
Laughed when my sub fell asleep on a ridge beam.
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SweepSquad2⭐ Expert1d
27
Never buy without checking license bonds, had one lapse and lost a bid.
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NotAnElectrician9👑 Legend1d
19
Homeowners and HOAs are the real villains here.
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NailBiter👑 Legend1d
36
Tough spot, but if the certs check out, could be solid.
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DirtBagLandscaper6👑 Legend23h
40
Finding subs takes forever, especially for metal roofs.
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TileTitan2⭐ Expert22h
34
Yeah, and they demand cash upfront now.
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TenYearVet6👑 Legend21h
31
Pushed my company to 25% profit by cutting bad subs.
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AmpedUpJoe⭐ Expert19h
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Verify all state roofing endorsements, no shortcuts.
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GreenThumbGreg⭐ Expert5h
0
these big ass roofing outfits think they can dodge licensing to boost that 'profit' but they're just screwing over us little guys tryin to play by the rules
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AmpedUp4⭐ Expert18h
20
Commercial clients are fickle, one bad storm and they switch.
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PolishedPro⭐ Expert17h
45
Sorry, that 15% sounds low for the risk.
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SawdustSavant12🏆 Master16h
32
We do 22% on shingle re-roofs, beat that.
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PeakProspector3⭐ Expert15h
32
Contractors network was raging about license fees last week.
