Industry: Commercial & High-End Residential Roofing and Restoration company.
Location: Texas
EBITDA: $1.212M
EBITDA Multiple: No List Price Offered
Transaction Amount: $6.325M
M&A Advisor: Doug Batts

In this episode of the M&A Deal Team Podcast, we explore the intricacies of a successful M&A transaction in the Commercial & High-End Residential Roofing and Restoration industry. The transaction involved a recapitalization and investment to drive continued growth or an outright sale of the company. Our guest expert, Doug Batts, guided the deal, which eventually closed with a strategic buyer as an asset sale.

The M&A transaction faced various challenges and considerations at each stage, starting from deep planning and valuation to due diligence and closing. Despite challenges in reconciling financials and deal structure changes, the deal was salvaged through effective negotiation and alignment between the parties.

Valuation was approached with peer comparisons, but the deal faced initial hurdles due to overstated financials and a change of mind regarding the deal structure. The negotiation points centered around the seller’s down payment and the partner’s earnout, ultimately leading to agreeable terms for both parties.

Throughout the process, clear communication and ongoing dialogue ensured alignment between stakeholders, managing conflicts and concerns. Efficient communication through emails facilitated coordination among management teams, legal and financial advisors, and other relevant parties.

Post-transaction integration was smooth due to the motivation of both parties to complete the deal successfully. The episode also delves into lessons learned, highlighting the importance of relying on experienced M&A advisors and having accurate financial data.

In the current M&A landscape, companies with EBITDAs ranging from $750K to $2M remain strong, despite economic uncertainties. However, there appears to be a shortage of companies within this range, creating a favorable seller’s market.

For sellers involved in similar M&A transactions, the advice is to engage a strong M&A advisor to navigate the process and enable sellers to focus on running the company and planning their retirement or next venture.

The M&A Deal Team Podcast delivers valuable insights into the complexities of M&A transactions in the Roofing & Restoration Services industry, making it a must-listen for businesses seeking successful deals in this vertical market.