Strategy
Roofing and gutter businesses provide essential services homeowners cannot afford to neglect.
Stable Cash Flows
Sector provides consistent demand, high margins (20-30% EBITDA), and insulation from recession.
Highly Fragmented
Highly fragmented industry, with many small, local operators who lack the resources to scale.
Potential for Consolidation
High fragmentation presents a significant opportunity for consolidation and growth.
Industry Trends
Supply & Demand Gap + Aging Housing Stock
- Current housing shortage of 4.5m homes
- 1.2m homes need to be built annually
- Median age of owner-occupied homes is 40 years old
- Current housing shortage of 4.5m homes
- 1.2m homes need to be built annually
- Median age of owner-occupied homes is 40 years old
Climate Change & Increase in Extreme Weather Events
- Increased rainfall intensity has driven a 25% increase in demand for larger-capacity gutter systems
- 70% of homeowners are willing to invest more in durable and
weather-resistant roofing materials
Growing PE Interest in Roofing & Gutter Services
- Update bullets based on notes
OUR PROCESS
- Establish regional "home base" hubs
- Acquire multiple companies within a hub
- Integrate them into a single, cohesive operation
By uniting these businesses under one umbrella, we will create a more efficient and scalable operation, allowing us to:
- Current housing shortage of 4.5m homes
- 1.2m homes need to be built annually
- Median age of owner-occupied homes is 40 years old
OUR TARGET INVESTMENT CRITERIA
Positive Free Cash Flow
We seek to invest in roofing and gutter businesses with a history of positive free cash flow and 20%+ EBITDA margins with room for operational improvement.
Motivated Sellers
We exclusively consider acquiring businesses where sellers offer sizable seller financing on reasonable terms and purchase multiples we trust we can augment via our consolidation approach.
Established Customer Base
We look for roofing and gutter companies that have built a loyal and diverse customer base, with a strong community focus and reputation for quality work and customer satisfaction.
Strong Market Dynamics
Our investment focus is on roofing and gutter enterprises in markets where we can leverage our hub and-spoke model to secure dominant market share.
Value Add & Growth Strategy
Offer Additional Services
When we buy a gutter company, we start offering roofing services and vice versa. It allows us to generate more revenue per customer. It also allows us to sell the customer multiple services.
Increase Average Tickets
We implement a sophisticated sales process and increase value to the customer that allows us to
increase prices on day one. So even with no increased lead flow we are able to in most cases double average ticket prices per customer.
Specialized Local Marketing Plan
With unique, mostly unknown marketing strategies we are able to increase lead flow both organically and paid leads, significantly increasing total lead flow.
Bolt On Acquisitions
By executing a “hub and spoke” model, we are able to acquire a company in a market then acquire other companies in the area thus eliminating competitors and adding revenue and profit quickly.