How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How to Sell a Roofing Business

Roofing is one of the most consolidated sectors in home services M&A. Private equity has been rolling up regional roofing companies for over a decade. Here is what the market looks like today and how to position your business for a strong exit.

What Roofing Businesses Sell For

Roofing business valuations vary significantly based on revenue mix, geography, and operational maturity. Storm-restoration-heavy businesses often trade at a discount because revenue is less predictable. Companies with a strong commercial inspection and maintenance book, or diversified residential replacement revenue, command higher multiples.

Roofing Valuation Ranges (2025–2026)

Storm-driven only

2–3.5× EBITDA

Unpredictable revenue, hard to finance

Mixed residential

3–5× EBITDA

Replacement + repair, some commercial

Commercial + inspection

4.5–6.5× EBITDA

Recurring commercial relationships, maintenance

Platform quality ($3M+ EBITDA)

6–9× EBITDA

PE acquisition target, multiple locations

The Roofing M&A Landscape

Several major PE-backed roofing platforms have been active acquirers for years — Tecta America, Bone Dry Roofing, Weather Tight Corporation, and others. These platforms are looking for regional market leaders with established crews, strong local reputations, and financials that can support debt financing.

Beyond the PE roll-ups, there is strong appetite from individual buyers — former roofing executives, contractors looking to expand, and SBA-funded entrepreneurial buyers. This creates a genuine competitive bidding environment when your business is marketed properly.

Preparing Your Roofing Business for Sale

Diversify revenue away from storm work

Storm restoration revenue is the lowest-quality revenue type in roofing. Buyers and lenders discount it heavily because it's weather-dependent and unpredictable. Before going to market, document what percentage of your revenue is replacement, repair, and commercial maintenance vs. insurance storm work.

Build your commercial maintenance book

Commercial roofing maintenance contracts are the highest-value revenue in the sector — predictable, recurring, and relationship-based. If you do any commercial work, formalize maintenance agreements wherever possible in the 12–18 months before sale.

Document your crew and subcontractor structure

Buyers pay close attention to how your roofing crews are structured. W-2 employees vs. 1099 subcontractors has significant implications for acquirers — both operationally and legally. Be clear on your labor model and make sure it's defensible.

Clean up insurance and safety records

Roofing has elevated workers' comp and liability exposure. Buyers will ask for 3 years of claims history and your current EMR (experience modification rate). A high EMR or pattern of claims will raise red flags and compress your multiple.

Separate the business from the owner

Many roofing businesses run entirely through the owner's relationships — with adjusters, commercial property managers, repeat customers. Document these relationships, introduce key contacts to a second-in-command, and demonstrate the business can operate without you.

The Role of a Roofing-Specialist Broker

A broker who has sold roofing companies before will have direct relationships with the PE platforms and strategic buyers who are actively acquiring. They know how to present storm restoration revenue in a way that doesn't destroy your multiple. They understand how to structure the deal around a crew transition and what buyers will focus on during due diligence.

Generalist brokers — who primarily sell restaurants, retail, and service businesses — won't have these relationships. They'll market your roofing company the same way they'd market a sandwich shop, which means you'll see fewer qualified buyers and lower offers.

Roofing-Specific Due Diligence Issues

Every roofing deal will hit these issues in due diligence. The sellers who come through cleanly are the ones who addressed them proactively.

Warranty liability exposure

Document all outstanding manufacturer and workmanship warranties. Buyers want to understand the tail risk. Having a clear warranty management process is a positive signal.

Licensing and insurance transfer

Roofing licenses are state and sometimes county-specific. Make sure your license is in the company's name, not yours personally. Confirm that it can be transferred or that the buyer can obtain one quickly.

Subcontractor classification

If you use 1099 subcontractors, buyers will ask hard questions about worker classification compliance. Review this with your attorney before going to market.

Backlog quality

Buyers will want to see your signed contracts and backlog. Storm work LOIs are worth less than signed replacement contracts. Document and organize your backlog before due diligence starts.