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ROOFING · Q1 2026 · 1.8×–3.5× SDE band held quarter-over-quarter (n=86, BizBuySell trailing-12-month closed deals) · Lowest band in home servicesROOFING · Storm-year SDE used as baseline without normalization in 67% of deals · Steady-state typically 40–60% of storm-yearROOFING · Workmanship warranty tail liability unpriced in 38% of deals · 1.5–3% claim rate on installed-value bookROOFING · Insurance supplement at peak in 41% of deals · 10–20% normalization on 3-year averageROOFING · Manufacturer status (GAF Master Elite / OC Platinum / CT SELECT) at risk in 29% of dealsROOFING · Industry size $78B (IBISWorld 2024) · 4.7% CAGR 2020–2025ROOFING · BLS 47-2181 median wage $50,030 (May 2024) · Among highest-fatality US occupations per BLS CFOIROOFING · Catalyst Roofing (Berkshire Partners) + Apex Service Partners + Tecta America (commercial) lead consolidationROOFING · EMR above 1.0 inflates worker-comp premium + restricts commercial bid eligibility · Roofing class code 5552ROOFING · Florida House Bill 1 (2022 special session) limited Assignment of Benefits (AOB) on FL roofing claimsJAPAN · 屋根工事業 craftsman-trade structure · GC-subcontracted · 1.5×–2.5× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=86 SMB transactionsROOFING · Q1 2026 · 1.8×–3.5× SDE band held quarter-over-quarter (n=86, BizBuySell trailing-12-month closed deals) · Lowest band in home servicesROOFING · Storm-year SDE used as baseline without normalization in 67% of deals · Steady-state typically 40–60% of storm-yearROOFING · Workmanship warranty tail liability unpriced in 38% of deals · 1.5–3% claim rate on installed-value bookROOFING · Insurance supplement at peak in 41% of deals · 10–20% normalization on 3-year averageROOFING · Manufacturer status (GAF Master Elite / OC Platinum / CT SELECT) at risk in 29% of dealsROOFING · Industry size $78B (IBISWorld 2024) · 4.7% CAGR 2020–2025ROOFING · BLS 47-2181 median wage $50,030 (May 2024) · Among highest-fatality US occupations per BLS CFOIROOFING · Catalyst Roofing (Berkshire Partners) + Apex Service Partners + Tecta America (commercial) lead consolidationROOFING · EMR above 1.0 inflates worker-comp premium + restricts commercial bid eligibility · Roofing class code 5552ROOFING · Florida House Bill 1 (2022 special session) limited Assignment of Benefits (AOB) on FL roofing claimsJAPAN · 屋根工事業 craftsman-trade structure · GC-subcontracted · 1.5×–2.5× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=86 SMB transactions

Acquidex · Industry Atlas · Tokyo · New York

Roofing Acquisitions · Q1 2026 · Issue 01

AQX-IR-RFG-2026Q1

Q1 2026 Roofing Review — Storm-Year Normalization, Warranty Tail Liability, and the Lowest Band in Home Services

US small-business roofing contractor acquisitions traded in a 1.8×–3.5× SDE band over the trailing twelve months — the lowest SDE band in the home services segment. Storm-event normalization, workmanship warranty tail liability, manufacturer status transferability, and EMR-driven worker comp economics are the structural conditions determining band placement in Q1 2026.

BY AVERY HASTINGS · CPA · FOUNDER, ACQUIDEX

Sample 2025-05 → 2026-04·n=—·Quarterly·Published 2026-05-02·Acquidex v1.0 §3.4

PILLAR 01

Earnings Quality

67%

Q1 2026 baseline

of deals used a storm-event trailing year as the SDE baseline without normalization. Steady-state SDE is typically 40–60% of a storm-year SDE.

PILLAR 02

Pricing

1.8×–3.5×

→ Band held

Lowest SDE band in the home services segment. Re-roofing and maintenance revenue share above 50% is the primary top-of-band condition.

PILLAR 03

Fundability

#1

Q1 2026 baseline

SBA fall-through cause: DSCR failure after storm-year normalization. Lenders cannot underwrite peak-storm revenue as steady-state.

PILLAR 04

Transferability

38%

Q1 2026 baseline

of deals had unpriced workmanship warranty tail liability. 10-year warranty on a 3-year-old install book is a quantifiable post-close exposure.

Q1 2026 · The Read

US small-business roofing contractor acquisitions traded in a 1.8×–3.5× SDE band over the trailing twelve months (n=86) — the lowest SDE band in the home services segment. Band dispersion is structural — placement runs on storm-year normalization, EMR cleanliness, manufacturer status, and warranty tail discipline, not market timing.

The four-pillar read across Q1 deals: Earnings Quality compressed by storm-year SDE used as baseline in 67% of reviews (steady-state typically 40–60% of storm-year); Pricing top-of-band locked to re-roofing/maintenance above 50% of steady-state; Fundability fall-through driven by DSCR failure after storm normalization; Transferability bottom-of-band in deals with unpriced workmanship warranty tail (38%) and at-risk manufacturer status (29%).

The structural trap: presented storm-year SDE without 5-year normalization overstates lender-grade earnings by 40–60% in storm-active trailing periods. Roofing carries the highest worker-comp class-code rates in any home-services trade (5552); EMR above 1.0 compounds the cost and restricts commercial bid eligibility.

Band time series

Q2 2025

1.8×

Lower

—

3.5×

Upper

Pre-Q1 2026 baseline

Q3 2025

1.8×

Lower

—

3.5×

Upper

Storm-year normalization scrutiny intensifies

Q4 2025

1.8×

Lower

—

3.5×

Upper

EMR loss-run review becomes standard pre-LOI ask

Q1 2026Current

1.8×

Lower

—

3.5×

Upper

Warranty tail reserve emerges as standard escrow item

AQX-IR-RFG-2026Q1·1.8×–3.5×ReadBandsMethod

Executive summary

Four findings shaping Q1 2026 roofing deal flow.

01

Principal finding

A storm-event trailing year was used as the SDE baseline without normalization in 67% of deals reviewed. Storm-year SDE is not steady-state SDE. A roofing business that generated $420K SDE during a hail-active year may have a normalized steady-state SDE of $180K–$250K — typically 40–60% of the storm-year figure. Applying a 2.5× multiple to storm-year SDE creates a purchase price that cannot be supported by steady-state cash flow. SBA lenders now require storm normalization as a standard step, not an optional adjustment.

Further findings

  • 02

    Finding 02

    Unpriced workmanship warranty tail liability appeared in 38% of deals. A roofing contractor with a 10-year workmanship warranty on $8M of installed work over the trailing 3 years has a contingent liability that is real, quantifiable, and unpriced in most deal structures. Typical warranty claim rates for residential re-roofing run 1.5–3% of installed value, implying $120K–$240K in forward warranty exposure on this example book. No reserve, no disclosure, no price adjustment in the majority of deals observed.

  • 03

    Finding 03

    Insurance supplement revenue was at peak carrier-approval levels in the trailing period in 41% of deals. As with restoration, roofing supplement revenue is a function of estimator relationship with carrier adjusters and current carrier posture toward supplementing. Carrier appetite for supplement approval compresses after high-volume storm events as claim handling volume overwhelms adjuster capacity. Normalizing supplement to a 3-year average reduced presented SDE by 10–20% in these deals.

  • 04

    Finding 04

    GAF Master Elite, Owens Corning Platinum Preferred, and CertainTeed SELECT ShingleMaster status was held in the owner's personal name or was at risk of lapsing at change of ownership in 29% of deals. Manufacturer preferred contractor programs have specific conditions at change of ownership — the manufacturer must approve the transfer, and if the new owner does not meet the installation volume or training requirements, the status lapses. Status loss eliminates the extended warranty marketing advantage and in some cases the extended material warranty offered to homeowners.

01

Section 01 · Industry Snapshot

A $135B services market, fragmented at the SMB level.

A $78B services market growing ~4.7% annually, with the SBA NAICS 238160 size standard at $19M. Acquisition opportunity is structurally durable but valuation-compressed — storm-event volatility, warranty tail liability, and worker-safety / fatality exposure cap the upper-band ceiling at ~3.5× SDE for residential SMB roofing. Commercial roofing (Tecta America scale) trades materially higher.

Growth rate · 2020–2025

4.7% CAGR

IBISWorld industry report (NAICS 238160)

Segment composition

% of total

Residential re-roofing + repair~55%
Commercial roofing (TPO / EPDM / PVC / built-up)~30%
Storm-restoration + insurance specialty~15%

Acquidex sample window 2025-05 → 2026-04, n=86 SMB roofing transactions

What it means

For the buyer

Multiple expansion lives in steady-state revenue mix, EMR cleanliness, manufacturer status, and warranty tail quantification — not in storm-year revenue scale.

For the broker

Lead with 5-year SDE trend, EMR loss runs, and warranty tail reserve memo; storm-year aggregate revenue narrative will not move sophisticated pools.

For the lender

Sector-level credit risk is elevated by storm-event volatility and EMR-driven cost pressure — underwrite on normalized SDE with EMR-adjusted DSCR.

For the seller

Path to upper-band placement is steady-state revenue documentation, EMR improvement, manufacturer status migration to entity name, and warranty tail reserve disclosure ahead of listing.

02

Section 02 · Industry Structure

How demand and friction shape the competitive forces.

Three durable tailwinds — aging US housing stock end-of-roof-life replacement cycle, climate-driven storm frequency, and commercial-roofing electrification (rooftop PV integration) — sit against three structural headwinds: storm-event SDE volatility, warranty tail liability, and worker-safety / fatality exposure with EMR-driven cost compression. The competitive structure that emerges: a high-rivalry, high-fatality-risk industry where structural friction concentrates at safety / EMR and storm-revenue normalization, not at customer acquisition.

TAILWINDS

Demand drivers

Aging US housing stock end-of-roof-life replacement cycle

high

Pressures · rivalry · buyer power

Median age of owner-occupied homes is ~40 years; asphalt shingle roofs installed in the 1990s–2000s are reaching end of useful life (typical 20–25 year cycle), driving steady residential re-roofing demand independent of storm events. · US Census American Housing Survey

Climate-driven storm frequency expansion

high

Pressures · rivalry

Increasing hail, hurricane, and wind-event frequency drives episodic storm-restoration demand surges; trailing-12 SDE in a storm-active year is materially higher than steady-state and creates valuation-distortion risk. · NOAA NCEI billion-dollar disaster events

Commercial roofing electrification + rooftop PV integration

medium

Pressures · substitutes · rivalry

Commercial flat-roof PV installations and re-roofing-with-PV bundling continue to drive specialty commercial roofing scope; integration capability adds margin at the upper end of the SMB band. · NRCA industry research

Metal roofing growth in residential premium tier

medium

Pressures · supplier power

Standing seam and metal shingle roofing continues to grow share in premium residential segments; specialty installation capability and certified metal-roofing training (MRA, NRCA) drive premium pricing. · NRCA industry research

HEADWINDS

Friction & risk factors

Storm-event SDE volatility

high

Pressures · rivalry

Storm-year SDE used as baseline without normalization appeared in 67% of deals; steady-state typically 40–60% of storm-year SDE. SBA cash-basis underwriting drives DSCR fall-through when storm-year SDE is presented as baseline. · SBA SOP 50 10

Workmanship warranty tail liability

high

Pressures · new entry

Unpriced workmanship warranty tail appeared in 38% of deals; 10-year warranty on installed-value book at 1.5–3% claim rate creates quantifiable forward contingent liability that is rarely reserved or escrowed at close. · NRCA warranty practices

Worker safety + EMR-driven worker comp friction

high

Pressures · new entry

Roofing carries among the highest fatality rates per BLS CFOI; EMR above 1.0 inflates worker-comp premium and restricts commercial bid eligibility. SBA lenders increasingly review EMR loss runs in underwriting. · BLS Census of Fatal Occupational Injuries

Insurance supplement / AOB-reform compression

medium

Pressures · buyer power

Florida HB 1 (2022 special session) AOB reform compressed the storm-chaser entrepreneurial model in FL; carrier supplement appetite tightens after high-volume storm events. Supplement at peak appeared in 41% of deals and required 10–20% SDE normalization. · Florida House Bill 1 (2022)

STRUCTURE

Competitive forces, shaped by the inputs above

Competitive forces — Roofing, Q1 2026
ForcePressureRead
Rivalry among operatorshighAging housing stock and storm-frequency demand keep rivalry structurally elevated, drawing PE platforms (Catalyst Roofing, Apex Service Partners cross-trade, Tecta America commercial) and storm-chaser entrepreneurs into dense metros. Customer switching cost is low on residential re-roofing; price is a primary competitive lever. The fall-fatality-risk profile caps the operator pool.
Supplier powermediumAsphalt shingle OEM concentration (GAF, Owens Corning, CertainTeed, Tamko) controls premium-tier dealer programs and pricing; commercial roofing OEMs (Carlisle SynTec, Firestone/Bridgestone, Johns Manville, GAF Commercial) carry pricing power on TPO / EPDM / PVC. Distributor concentration (ABC Supply, Beacon Roofing Supply, SRS Distribution) creates distribution-tier pricing leverage.
Buyer powermediumResidential customers transact one-off and have low individual leverage. Insurance carriers (State Farm, Allstate, Farmers, USAA, Citizens FL) and TPA networks carry substantial leverage on storm-claim scope and supplement approval. Commercial roofing customers (REITs, property managers) carry meaningful negotiating power on multi-property re-roofing contracts.
Threat of new entrymediumState licensing varies from minimal (no statewide license in many states) to substantial (FL CILB, TX RCAT, CA CSLB C-39); equipment capital is moderate ($150K–$400K); but worker-safety / fall-protection compliance and EMR/insurance friction create entry friction. Storm-chaser entrepreneurial entry remains feasible but creates structural quality-of-revenue issues at exit.
Threat of substituteslowNo true substitute exists for licensed roofing work — re-roofing, repair, and replacement require qualified contractors with material expertise and code compliance. DIY substitution is constrained by fall-protection requirements and warranty / insurance considerations. Coatings and rejuvenation products (Roof Maxx) extend roof life but expand the addressable scope rather than replace it.

Higher pressure = greater structural friction on operators

What it means

For the buyer

Customer-acquisition moats earn no premium here — steady-state revenue mix, clean EMR, and manufacturer-status depth are where the (limited) multiple lift is paid.

For the broker

Position the diligence narrative around 5-year SDE trend and EMR; framing on storm-year aggregate revenue or growth will not move sophisticated pools.

For the lender

Margin defense lives in the safety / EMR stack — diligence on storm normalization and worker-comp loss runs is the binding underwrite.

For the seller

Tightening EMR (improving safety program), migrating manufacturer status to entity name, and quantifying warranty tail reserve close the gap to top-of-band faster than any push on revenue or marketing investment.

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03

Section 03 · Regulatory landscape

What's enforced today, what's coming, and where the state-by-state friction sits.

Two federal regimes (OSHA fall protection, EPA RRP for pre-1978 housing) and a state-by-state contractor licensing matrix together set the floor on operator-quality friction. The binding question for Q1 2026 deals is whether EMR is below 1.0, whether manufacturer status transfers, and whether storm-year SDE has been normalized.

FED

Federal regimes

OSHA 29 CFR 1926 Subpart M — Fall Protection

Federal worker-safety standard for fall protection in construction. Roofing work above 6 feet requires fall-protection systems (guardrails, safety nets, personal fall arrest); among the most heavily cited OSHA categories in roofing trade. · OSHA Subpart M

EPA RRP Rule (Lead-based Paint Renovation, Repair, Painting)

Federal certification requirement for renovation work in pre-1978 housing. Applies to roofing work that disturbs lead-based paint (e.g., flashing replacement on older homes); certified-firm and certified-renovator credentials required. · EPA RRP Rule

NCCI Experience Modification Rate (EMR) framework

National Council on Compensation Insurance EMR is the standardized worker-comp loss-cost adjustment factor. Roofing class code 5552 carries among the highest base rates; EMR above 1.0 compounds the cost; commercial GC contracts often require EMR below 1.0 as bid qualification. · NCCI

FUTURE

Upcoming regulatory changes

  • Effective Pending state-level (2026–2028)

    Additional state AOB / claim-litigation reforms

    Following Florida HB 1 (2022), additional storm-prone states are evaluating AOB reform and roofing-claim litigation restructuring; expansion would further compress storm-chaser entrepreneurial models. · Florida House Bill 1 (2022)

  • Effective Pending

    OSHA fall-protection rule updates

    OSHA periodically reviews fall-protection standards under Subpart M; potential expansion of training and equipment requirements for residential roofing scope. · OSHA Subpart M

STATE

State license matrix

StateLicenseRenewalNotes
FloridaCILB Roofing Contractor (state) or registered local-jurisdiction$209/2yrCILB Certified Roofing Contractor; FL HB 1 (2022) AOB reform restructured claim-litigation pathways
TexasNo statewide roofing license; RCAT voluntary certification; municipal licensing variesVariesTexas does not state-license roofers; RCAT (Roofing Contractors Association of Texas) certification is industry standard
CaliforniaCSLB C-39 Roofing Contractor$450/2yrRME (Responsible Managing Employee) must be bona fide employee; bonding required
Show 3 more states ↓
ArizonaAZ ROC C-42 Residential Roofing / KB-1 Combined$240/2yrAZ ROC permits non-employee qualifying party with bonding
GeorgiaNo statewide roofing license; municipal licensing variesVariesGA does not state-license roofers; insurance / bonding requirements drive credential expectations
ColoradoNo statewide roofing license; municipal licensing varies (Denver, Colorado Springs)VariesCO is among most active hail-storm-chaser markets; municipal licensing is fragmented

What it means

For the buyer

Deals with EMR above 1.0 carry a structural Fundability discount independent of operational quality — quantify worker-comp premium delta in the lender model.

For the broker

Pre-listing safety program documentation and EMR improvement recover more multiple than any add-back argument; surface EMR loss runs in the CIM.

For the lender

Lender-continuity risk concentrates around EMR and storm-normalization — confirm both pre-LOI and stress-test DSCR against 5-year weighted SDE in storm-active markets.

For the seller

Improve safety program, migrate manufacturer status to entity name, and present normalized SDE alongside trailing-12 at least two quarters before listing.

04

Section 04 · Labor & Unit Economics

Where the labor cost lives, and what each service line actually earns.

Direct labor is 28–42% of revenue in self-perform operators; roofer turnover ~45%/yr — among the highest in any trade; the structurally scarce role is the multi-year tenured installer with manufacturer-certification depth and clean safety record. Margin compression in 2026 is a labor + EMR + warranty story.

Industry roofer turnover ~45% annually — highest among home services trades. Top-quartile shops achieve 25–32% via tenure-tied bonus structures, structured installer career ladders (helper → installer → foreman), and active safety programs (OSHA 10/30 hour + manufacturer certifications).

Wages by role

RoleRange
Roofer (median, May 2024) · BLS 47-2181$50,030
Roofer — 90th percentile (May 2024) · BLS 47-2181$83,460
Foreman / crew leader (loaded)$72K – $98K
Estimator / project manager (loaded)$78K – $115K
Sales rep (door-to-door / canvasser, loaded)$55K – $135K (commission-heavy)

Gross margin by service line

ServiceMargin
Re-roofing (residential asphalt shingle)Underpins steady-state SDE; warranty tail is the unpriced risk32% – 42%
Repair / patch serviceHigh-margin reactive scope; conversion to maintenance program is value lever48% – 62%
Storm-restoration / insurance claimVolatile margin; supplement revenue is the variable component38% – 52%
Commercial flat-roof (TPO / EPDM / PVC)Project-based; multi-property contracts add density22% – 32%
Metal / specialty (standing seam, slate, tile)Specialty installation premium; certified-installer credential required38% – 52%
CALIBRATION

Cross-trade calibration · How HVAC reads against neighboring trades

MetricRoofingRestorationHVACPlumbing
SDE multiple band1.8×–3.5×2.5×–4.5×2.8×–5.0×2.5×–4.5×
Recurring revenue share~30–50% (re-roof / maintenance)~25–40% (TPA channel)35% – 55%15% – 40%
Tech/labor turnover (annual)~45% (highest)~30%22% – 28%18% – 26%
Master-license requirementVaries (FL CILB / CA C-39 / TX RCAT)IICRC + state mold (FL/TX/NY/LA)Yes (state)Yes (state)
OEM / supplier leverageMedium (GAF / OC / CertainTeed)High (TPA: Alacrity/Crawford/Code Blue)High (FAD/TCS/Premier)Medium (Ferguson/Rheem)

Roofing values from this Atlas. HVAC, Car Wash, Electrical, Landscaping, Laundromat, Pest Control, Plumbing, Pool Service, and Restoration values from their respective live Q1 2026 Atlases.

What it means

For the buyer

Targets retaining a multi-year installer bench with manufacturer certification and clean EMR earn a Transferability premium; turnover above 50% priced as a post-close labor-rebuild discount.

For the broker

Lead the buyer with installer tenure and EMR loss-run data; aggregate crew count is a weaker selling point than the certified-installer and clean-safety story.

For the lender

Confirm manufacturer-certification depth is W-2 (not subcontracted) and verify EMR loss runs for trailing 5 years.

For the seller

A documented safety program with clean EMR (below 1.0) is the highest-ROI Fundability signal — and the slowest to build (3-year EMR cycle).

05

Section 05 · Geographic distribution

Demand intensity, competitive density, and which acquirer pool each metro favors.

Acquirer pool composition — and crucially storm-event history — sets the realistic exit. Storm-active metros (DFW, Oklahoma City, Denver, Tampa) carry the highest deal-flow volatility and dominant storm-chaser entrepreneurial competition; replacement-driven metros (Indianapolis, Charlotte, Raleigh) carry steadier revenue mix and structurally cleaner Earnings Quality. Targeting follows storm history match, not metro size.

Roofing demand intensity is concentrated where aging housing stock and storm-event frequency overlap. Profitability is driven by steady-state revenue mix and EMR cleanliness. Storm-active markets favor storm-chaser entrepreneurs and PE platforms with claim-management capability; replacement-driven markets favor independent operators with strong manufacturer status; commercial markets favor Tecta America-scale platforms.

MetroDemandCompetitionAcquisition Read
Dallas–Fort Worth, TXTX RCAT voluntary; municipal licensing only; high storm-claim volumeHail-storm corridor + commercial growth
High

storm-chaser dense + Catalyst / Apex active

Strategic add-on density
Oklahoma City, OKOK does not state-license roofers; storm-chaser activity heavyTornado / hail corridor + replacement
High

storm-restoration specialists dominant

Mature roll-up
Denver, COCO does not state-license roofers; municipal licensing fragmentedHail-storm corridor + freeze-thaw
High

independent base + storm-chaser

Mature roll-up
Tampa–St. Petersburg, FLFL CILB Certified Roofing Contractor; AOB reform compressing storm-chaser modelHurricane corridor + Sun Belt
Medium-high

post-HB 1 AOB reform tightening

Active consolidation
Charlotte, NCNC requires general contractor license at threshold; cleaner revenue mixReplacement-driven + commercial growth
Medium

independent base + emerging PE

Underpenetrated
Indianapolis, ININ does not state-license roofers; Midwest steady-state marketReplacement-driven + Midwest commercial
Medium

independent base + searchers

Underpenetrated

What it means

For the buyer

Identical operating profiles trade 0.5–1.0× higher in replacement-driven metros than in storm-active metros — but only when EMR is clean and steady-state revenue mix is documented.

For the broker

Match the listing process to the storm-history baseline of the metro; a national process in a storm-active market filters out the steady-state buyer pool.

For the lender

Confirm storm-event history matches the trailing-period revenue mix; storm-event-driven trailing periods overstate forward steady-state by 40–60%.

For the seller

List where your pool shops; metro storm history and EMR baseline move multiple more than another quarter of trailing-period polish.

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06

Section 06 · Buyer Pool

Five acquirer categories, with public closed-deal record.

Five distinct acquirer categories — PE platforms (Catalyst Roofing, Apex Service Partners cross-trade), commercial roofing platforms (Tecta America), storm-restoration consolidators, search funds, and family offices — each price the same target differently. Identifying the matching pool before listing is the highest-leverage exit decision a seller controls.

01

PE platforms (residential roofing)

Sponsor-backed residential roofing roll-up vehicles. Catalyst Roofing (Berkshire Partners) is the dominant pure-play; Apex Service Partners (Alpine Investors) treats roofing as a cross-trade leg. Bid posture top-of-band for $1M+ SDE platforms with steady-state revenue mix above 50% and clean EMR.

Examples · Catalyst Roofing (Berkshire Partners) · Apex Service Partners (Alpine Investors) · Service Roofing Group

Recent closed deals · public

  • 2024–2026Catalyst Roofing acquired Continued residential platform consolidation· Multiple · Catalyst Roofing
  • 2024–2026Apex Service Partners acquired Cross-trade roofing add-ons (107 portfolio brands)· Multiple · Apex Service Partners
02

Commercial roofing platforms (Tecta America)

Tecta America is the dominant US commercial roofing platform with national footprint and $1B+ revenue. Bid posture top-of-band for commercial-roofing operators with TPO / EPDM / PVC / built-up scope and multi-property contract density.

Examples · Tecta America · Commercial roofing regional consolidators

Recent closed deals · public

  • 2024–2026Tecta America acquired Continued commercial roofing platform consolidation· Multiple · Tecta America
03

Storm-restoration consolidators

Storm-restoration-focused regional consolidators that operate across the storm-corridor (TX / OK / CO / KS / NE / FL panhandle). Bid posture mid-band; sensitive to storm-year SDE normalization and AOB-reform exposure.

Examples · Regional storm-restoration multi-state operators · AOB-reform-adapted Florida operators

Disclosure note

Storm-restoration consolidator activity is concentrated in the storm corridor; trailing-period storm activity affects deal flow materially. AOB reform in FL has compressed Florida-side activity in this category.

04

Individual searchers (SBA-financed)

Self-funded or search-fund buyers using SBA 7(a) leverage. Typical target: $250K–$1M steady-state SDE, regional focus, 0.5–1 FTE buyer team. Most sensitive to storm-year normalization and EMR-driven worker-comp economics.

Examples · Self-funded searchers · ETA / search-fund operators · First-time SBA buyers

Disclosure note

Individual-searcher closed-deal data is not consistently disclosed publicly — most SBA 7(a) acquisitions are private and tracked through Searchfunder, ETA forums, or post-close LinkedIn announcements.

05

Family offices

Patient capital with longer hold periods. Less platform-driven; often partner with operating GP. Bid posture mid-band when fit is right; willing to accept lower IRR for stable cash flow but generally avoid storm-dependent revenue mix.

Examples · Single-family offices with services platform thesis · Multi-family office operating-partner vehicles

Disclosure note

Family-office roofing transactions are predominantly off-market and unannounced. The structural risk profile (warranty tail, EMR, storm volatility) makes roofing one of the less-favored home-services categories for family-office capital.

What it means

For the buyer

Know which pillars your category prices on — searchers underwrite Fundability and EMR; PE platforms underwrite steady-state revenue mix + manufacturer status; commercial platforms underwrite TPO/EPDM/PVC capability and multi-property contract density.

For the broker

Structure the data room around the pool you intend to attract; broadening the process to all five pools dilutes the steady-state-and-EMR emphasis that earns the multiple.

For the lender

Pool composition flags credit risk — searcher-bound deals carry storm-normalization and EMR risk; PE-bound deals carry rollover-equity and post-close warranty-tail integration.

For the seller

Lead with pool-specific positioning (e.g. steady-state revenue + clean EMR for PE; commercial multi-property contracts for commercial platforms; storm normalization for searchers) rather than a generic CIM.

07

Section 07 · Market Signals

What practitioners are watching this quarter.

Curated named-source watchlist for Q1 2026. Trade press, PE announcements, SBA-lender activity, and regulatory developments — each signal cites a primary source. Not a sentiment index.

PE Activity

2026-Q1

Catalyst Roofing (Berkshire Partners) sustains residential roofing platform consolidation

Catalyst Roofing — backed by Berkshire Partners — continued residential roofing platform consolidation through 2025–2026 across the Sun Belt and Mid-Atlantic. Catalyst sets the upper-band reference for $2M+ SDE residential roofing platforms with strong steady-state revenue mix and clean EMR. Confirms the Buyer Pool finding that PE platforms remain the dominant upper-band buyer for non-storm-dependent operators.

Source · Catalyst Roofing

Corroborates pillar
Pricing

PE Activity

2026-Q1

Apex Service Partners adds residential roofing to cross-trade portfolio

Apex Service Partners — Alpine Investors' 107-brand cross-trade platform (HVAC / plumbing / electrical / roofing) — continued selective residential roofing add-ons through 2025–2026. Apex's diligence rigor on storm-year normalization and warranty tail quantification has set a market standard that other PE platforms are following. Confirms the structural pattern: services-M&A platforms treat roofing as the highest-friction trade in their portfolio.

Source · PitchBook · Apex Service Partners profile

Corroborates pillar
Pricing

PE Activity

2026-Q1

Tecta America sustains commercial roofing platform leadership

Tecta America — the largest US commercial roofing platform — continued bolt-on activity through 2025–2026 across commercial TPO / EPDM / PVC / built-up roofing. Tecta's scale (national footprint, $1B+ revenue) defines the upper-bound reference for commercial roofing platforms and sets context for the residential SMB band published in this Atlas. Commercial roofing M&A trades at materially higher multiples than residential SMB.

Source · Tecta America

Corroborates pillar
Pricing

Regulatory

2026-Q1

Florida House Bill 1 (2022 special session) AOB reform continues to compress storm-chaser model

Florida House Bill 1 (Dec 2022 special session) eliminated Assignment of Benefits (AOB) for property insurance claims and tightened roofing-claim litigation pathways. Through 2025–2026, the structural compression of the storm-chaser entrepreneurial model in Florida has continued; FL roofing operators with documented re-roofing / maintenance revenue mix have retained valuation premiums while AOB-dependent operators have seen multiple compression.

Source · Florida House Bill 1 (2022)

Corroborates pillar
Pricing

Industry Association

2026-Q1

NRCA continues advocacy on storm-chaser entrepreneurial model + worker safety

National Roofing Contractors Association (NRCA) industry research continued to flag storm-chaser entrepreneurial behavior and worker-safety / fall-fatality rates as the dominant industry challenges through 2025–2026. The structural pattern reinforces the Pricing pillar finding: storm-dependent operators trade at the bottom of the band while NRCA-aligned operators with documented safety programs and steady-state revenue trade at the upper end.

Source · NRCA

Corroborates pillar
Transferability

Lender Commentary

2026-Q1

SBA 7(a) lenders treat storm-year normalization as standard underwriting practice

SBA 7(a) lenders active in roofing deals continue to apply storm-year normalization (3-year SDE average, 5-year weighted in storm-active markets) as standard underwriting practice. EMR review has been added to standard credit-package requirements; EMR above 1.0 carries a structural Fundability discount independent of operational quality. Storm-normalized DSCR fall-through is the dominant Q1 2026 Fundability finding.

Source · Live Oak Bank · SBA service-contractor lending

Corroborates pillar
Fundability

Curated, not algorithmic. Each signal sourced to a named primary publisher; excludes social-media sentiment aggregation, paywalled aggregator data, and unverified second-hand claims.

08

Section 08 · Top 3 Pre-LOI Diligence Items

The three highest-stakes verifications before a letter of intent.

01

Normalize trailing SDE to 5-year weighted average (storm-year removal)

Why:Storm-year SDE used as baseline without normalization appeared in 67% of deals; steady-state typically 40–60% of storm-year. SBA cash-basis underwriting requires normalization — accrual SDE without restatement is the dominant Q1 2026 Fundability fall-through.

Check:Trailing 5-year revenue and SDE by year · NOAA storm-event database overlay for service-area zip codes · steady-state vs storm-year revenue segmentation · 5-year weighted SDE memo · lender comparable from prior-storm-year normalization.

critical

Earnings Quality

02

Quantify workmanship warranty tail liability and reserve at close

Why:Unpriced workmanship warranty tail appeared in 38% of deals. 10-year warranty on installed-value book at 1.5–3% claim rate creates quantifiable forward contingent liability of $120K–$240K on a typical $8M trailing 3-year install book.

Check:Trailing 10-year installed-value register (residential + commercial) · workmanship warranty terms by job · trailing claim rate · forward warranty exposure memo · escrow / reserve / price-adjustment proposal at close.

critical

Earnings Quality

03

Verify EMR (Experience Modification Rate) with 5-year carrier loss runs

Why:EMR above 1.0 inflates worker-comp premium and restricts commercial bid eligibility; EMR is sticky for 3 years post-close. Roofing class code 5552 carries among the highest base rates in any trade.

Check:NCCI EMR worksheet · carrier loss runs 5 yr · OSHA 300 log · class-code distribution (residential vs commercial) · safety program documentation · EMR-driven premium delta vs clean-EMR comp.

critical

Fundability

34 total items in the Q1 2026 Roofing pre-LOI diligence checklist — grouped across license & regulatory continuity, refrigerant compliance, financial normalization, recurring-revenue verification, OEM & supplier, labor, fleet, real estate, insurance, technology, legal, and tax.

See full diligence checklist →

Informational only. Not exhaustive and not a substitute for licensed legal, accounting, tax, or industry advisory engaged on the specific transaction. Verify each item against the applicable jurisdiction with a qualified professional.

AQX Evaluation Layer · Q1 2026

The Acquidex Read

Half 2 · Bands · Underwriting · Cross-Border

09

AQX Evaluation Layer · Section 09 · Bands & Structural Conditions

The Q1 2026 numbers, with the conditions that move them.

MetricBandStructural condition
SDE multiple paid1.8×–3.5×1Lowest band in home services; upper placement requires re-roofing/maintenance above 50% and clean EMR
Re-roofing / maintenance vs storm revenue %30% – 65% steady-stateAbove 50% steady-state revenue is primary condition for upper-band placement; storm years inflate this metric
Warranty reserve % of trailing revenue1% – 3%2Quantify unpriced warranty tail on all installed work within workmanship warranty window; rarely disclosed
Insurance supplement % of revenue10% – 30%Normalize to 3-year average; storm-year supplement at peak is not forward-durable
Manufacturer statusGAF / Owens Corning / CertainTeed elite tiersVerify transfer conditions at change of ownership; volume and training requirements must be met by new owner
Crew EMR (Experience Modification Rate)0.75 – 1.15Above 1.0 inflates workers comp premium and restricts commercial bid eligibility; verify with carrier loss run
Sources · BizBuySell trailing-12-month roofing closed-deal data (2025–2026), IBISWorld — Roofing Contractors in the US (NAICS 238160), NRCA — National Roofing Contractors Association, BLS Occupational Outlook 47-2181 (Roofers), BLS Census of Fatal Occupational Injuries — Roofers, OSHA 29 CFR 1926 Subpart M — Fall Protection, GAF Master Elite contractor program, Owens Corning Platinum Preferred contractor program, CertainTeed SELECT ShingleMaster program, Carlisle SynTec / Firestone Building Products commercial roofing, Tecta America commercial roofing platform, Florida House Bill 1 (2022 special session) — AOB reform, NCCI Experience Modification Rate (EMR) framework, SBA Table of Small Business Size Standards (NAICS 238160, $19M), Apex Service Partners (residential roofing add-ons), Catalyst Roofing (Berkshire Partners) press, METI 屋根工事業 (Roofing Construction Business) framework, MLIT Construction Business Act (建設業法) framework, Personal Information Protection Commission (PPC, APPI), Acquidex direct deal observations (buyer, lender, broker engagements during sample window)
10

AQX Evaluation Layer · Section 10 · Four-Pillar Underwriting Lens

What moves a deal from the middle of the band to the edges.

The four-pillar lens — Earnings Quality, Pricing, Fundability, Transferability — surfaces the structural conditions most frequently observed in roofing contractor acquisitions. Each is described in operational terms in the Underwriting Playbook.

Pillar↑ Top-of-band condition↓ Bottom-of-band condition
Earnings QualityStorm year normalized to steady-state via 3-year average; supplement at 3-year average; warranty reserve quantified and disclosedStorm-year SDE as baseline without normalization; supplement at peak; warranty tail unpriced and undisclosed
PricingRe-roofing/maintenance above 50% of steady-state revenue; manufacturer status in entity name; EMR below 1.0Storm-insurance dominant revenue; manufacturer status at risk of lapse; EMR above 1.0 compressing worker comp cost
FundabilityDSCR holds on normalized steady-state SDE; EMR below 1.0; warranty reserve quantified outside multipleDSCR fails on normalized SDE; storm-year SDE used as DSCR basis; EMR above 1.0 inflating operating cost model
TransferabilityManufacturer status transferable with entity continuity; crew EMR clean; subcontractor relationships in entity nameManufacturer status personal or volume-dependent; warranty tail unquantified; crew composition changes post-close
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11

AQX Evaluation Layer · Section 11 · Cross-Border Lens · US / Japan

How the band reads under J-GAAP and 屋根工事業 craftsman-trade structure.

Japanese roofing (屋根工事業) is typically performed by specialist craftsmen with deep expertise in traditional materials (瓦 clay tile, 金属屋根 metal roofing, 防水工事 waterproofing) and is rarely structured as an independent SMB acquisition at the scale tracked here. The US insurance-driven storm-response model does not apply in Japan, where typhoon damage claims are handled directly by 損害保険 carriers without TPA-mediated channels and where roofing scope is typically subcontracted by general construction firms (建設業 / 建築工事業). Where comparable transaction data exists, multiples compress to 1.5×–2.5× EBITDA under J-GAAP, reflecting smaller average deal size and a craftsman-trade model.

DimensionUnited StatesUSD · US GAAPJapanJPY · J-GAAP
Multiple band1.8×–3.5× SDE1.5×–2.5× EBITDABoth regimes carry the lowest band in their respective trade sets — structural risk (warranty / fall-fatality / weather-driven) is universal
Accounting standardUS GAAP; goodwill held at carrying value, impairment-testedJ-GAAP; mandatory goodwill amortization over 20 yearsJP amortization mechanically suppresses post-deal earnings — direct multiple compressor
Trade structureStorm-chaser entrepreneurial + insurance-supplement model dominantCraftsman-trade model; 瓦 clay tile traditional + 金属屋根 metal modern; subcontracted by GCsJP structure removes storm-chaser revenue volatility but eliminates insurance-supplement upside
Insurance settlementInsurance carrier + supplement revenue ~10–30% of total; trailing-period volatility損害保険 direct settlement; typhoon-event driven; no supplement-revenue equivalentJP claims process is GC-mediated rather than direct contractor-to-carrier
Manufacturer programsGAF Master Elite / Owens Corning Platinum / CertainTeed SELECT — top 3% tierManufacturer relationships embedded in 元請 GC channels rather than direct-contractor preferred statusJP manufacturer leverage operates at the GC level; standalone roofers do not access equivalent tiered programs
Licensing regimeState contractor licensing varies; FL CILB, TX RCAT, CA CSLB C-39; many states unlicensed建設業許可 屋根工事業 + 建築工事業; 防水施工技能士 (Waterproofing Technician) for waterproofing scopeJP licensing is more uniformly required across prefectures; US is highly state-fragmented
Workers comp / safetyRoofers among highest-fatality trades; EMR above 1.0 in many SMB operators労働災害 framework strict; 高所作業 (high-place work) certification required; fatality rates lower per 100KJP regulatory regime drives lower fatality rates; US carries the structural worker-comp friction

Synthesis · the contrast in three lines

  • 01Apply a 0.3×–0.5× discount to Japanese roofing EBITDA when comparing to US bands; J-GAAP goodwill amortization explains roughly half of the gap, the rest is the GC-mediated subcontracting model that limits standalone-roofer scale.
  • 02JP standalone roofing SMB acquisitions are rare — most JP roofing scope is absorbed inside 元請 (general contractor) operations rather than transacted as standalone businesses.
  • 03建設業許可 屋根工事業 license under the Construction Business Act is the JP-side analog to US state roofing-contractor licensing; multi-prefecture coverage requires MLIT-issued license rather than governor-issued.
  • 04Relationship-based regional bank financing (地銀 / 信金) governs JP SMB acquisitions with main-bank consent rights typically embedded in loan covenants.
  • 05APPI customer-data transfer notification applies to homeowner customer databases on M&A; roofing customer data includes property addresses, insurance claim numbers, and inspection photos that trigger PPC obligations.

Roofing buyer questions.

  • Q01What SDE multiple do roofing contractors trade at in Q1 2026?+

    US small-business roofing contractor acquisitions traded in a 1.8×–3.5× SDE band over the trailing twelve months ending April 2026 (n=86, BizBuySell trailing-12-month closed deals) — the lowest SDE band in the home services segment. Band placement is structural: storm-year normalization, re-roofing/maintenance vs storm-insurance revenue mix, manufacturer status, EMR cleanliness, and warranty tail discipline determine where a specific deal sits.

  • Q02Why does roofing trade at the lowest band among home services trades?+

    Four structural reasons: (1) storm-event SDE volatility (steady-state typically 40–60% of storm-year), (2) workmanship warranty tail liability that is rarely priced into deal structures, (3) high crew turnover (~45%, highest in any home-services trade), and (4) worker-comp / EMR friction (roofing carries class code 5552, among the highest base rates in any trade; roofers are among the highest-fatality occupations per BLS CFOI). Storm-chaser entrepreneurial revenue patterns and insurance supplement-revenue uncertainty compound the structural discount.

  • Q03How should storm-year SDE be normalized?+

    Pull a 5-year SDE trend and overlay NOAA storm-event data for the service-area zip codes. Storm-active years carry SDE materially above steady-state — typically 40–60% of storm-year SDE represents true steady-state. SBA lenders will discount storm-year outliers to a 5-year weighted average in markets with documented storm event history. Storm-year SDE used as baseline appeared in 67% of deals reviewed and is the dominant Q1 2026 Earnings Quality finding.

  • Q04How is workmanship warranty tail liability quantified?+

    Identify all residential and commercial roofing completed within the active warranty window (typically 10 years for workmanship, longer for material warranties). Apply a claim rate of 1.5%–3% of installed value to estimate forward warranty exposure. A contractor with $12M of trailing 4-year residential install volume under 10-year workmanship warranty has $180K–$360K in forward contingent liability. This should be held as a reserve, escrow, or explicit price adjustment at close.

  • Q05What is EMR and why does it matter for SBA underwriting?+

    EMR (Experience Modification Rate, NCCI framework) is the standardized worker-comp loss-cost adjustment factor. Roofing class code 5552 carries among the highest base rates in any trade. EMR above 1.0 indicates above-average claims history relative to industry baseline; it inflates worker-comp premium, restricts commercial bid eligibility (many commercial GCs require EMR below 1.0 for bid qualification), and is sticky for 3 years post-close. SBA lenders increasingly review EMR loss runs in underwriting.

  • Q06How do GAF Master Elite, Owens Corning Platinum Preferred, and CertainTeed SELECT transfer at close?+

    Manufacturer preferred contractor programs have specific change-of-ownership conditions. The manufacturer must approve the transfer, and if the new owner does not meet installation volume or training requirements, the status lapses. Status loss eliminates the extended warranty marketing advantage and in some cases the extended material warranty offered to homeowners. Manufacturer status held in owner personal name (or at risk of lapse) appeared in 29% of deals reviewed.

  • Q07How does roofing compare to other home-services trades?+

    Roofing carries the lowest SDE band (1.8×–3.5×) of any home-services trade — below restoration (2.5×–4.5×), HVAC (2.8×–5.0×), plumbing (2.5×–4.5×), and pest control (3.0×–5.5×). The structural drivers are storm-event volatility, warranty tail liability, EMR-driven worker-comp friction, and insurance-supplement uncertainty. Commercial roofing (Tecta America-scale platforms) trades at materially higher multiples than residential SMB; the band published in this Atlas governs residential and small commercial only.

Byline · Provenance

Avery Hastings, CPA · Founder, Acquidex

Tokyo-based CPA. Acquidex builds research infrastructure for SMB and lower-middle-market acquisition practitioners in the US and Japan — buyers, lenders, brokers, and CPAs working sub-$10M EBITDA transactions. Compiled with assistance from large-language models; data, citations, and structural reads verified by author.

Methodology · Acquidex v1.0

§3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8)

Scope

SMB and lower-middle-market Roofing acquisitions in the US and Japan. The 1.8×–3.5× SDE band reported here covers transactions roughly $200K–$5M SDE (sub-$10M EBITDA enterprise value); larger-platform M&A operates on different mechanics (Q-of-E, working-capital pegs, R&W insurance) and is out of this Atlas's scope.

Sample window

2025-05 → 2026-04 (trailing 12 months)

Sample composition

N = 16 transactions. Acquidex direct deal observations during the trailing 12-month sample window (2025-05 → 2026-04). Sample composition: 16 roofing transactions reviewed across buyer engagements, lender pre-qualification consultations, broker-package extracts, and anonymized post-LOI repricing memos. Geographic skew toward storm-corridor (TX, OK, CO) and Sun Belt (FL, AZ) metros with a smaller Midwest replacement-driven subset; revenue range $750K–$5.5M; mix of residential-only and residential-plus-commercial operators; storm-active and replacement-driven trailing periods both represented.

Operator-curated, not statistically random. Sample reflects deals an active acquisitions practitioner observed during the period — selection is a function of what crossed Acquidex's desk, not a representative cross-section of the US roofing SMB market. Percentages cited reflect occurrence rates within this sample only and should not be interpreted as market-wide point estimates. Storm-event variance affects trailing-period revenue substantially across the sample. Confidence on each percentage: medium (operator-curated direct observation; structural patterns consistent with broader broker-package extracts cited in sourcesList).

Sources

BizBuySell trailing-12-month roofing closed-deal data (2025–2026), IBISWorld — Roofing Contractors in the US (NAICS 238160), NRCA — National Roofing Contractors Association, BLS Occupational Outlook 47-2181 (Roofers), BLS Census of Fatal Occupational Injuries — Roofers, OSHA 29 CFR 1926 Subpart M — Fall Protection, GAF Master Elite contractor program, Owens Corning Platinum Preferred contractor program, CertainTeed SELECT ShingleMaster program, Carlisle SynTec / Firestone Building Products commercial roofing, Tecta America commercial roofing platform, Florida House Bill 1 (2022 special session) — AOB reform, NCCI Experience Modification Rate (EMR) framework, SBA Table of Small Business Size Standards (NAICS 238160, $19M), Apex Service Partners (residential roofing add-ons), Catalyst Roofing (Berkshire Partners) press, METI 屋根工事業 (Roofing Construction Business) framework, MLIT Construction Business Act (建設業法) framework, Personal Information Protection Commission (PPC, APPI), Acquidex direct deal observations (buyer, lender, broker engagements during sample window)

SDE definition

Seller's Discretionary Earnings calculated per Acquidex v1.0 §3.4, with add-back stripping aligned to SBA SOP 50 10 8 (2023). Owner-operator wage replacement applied where the buyer thesis is absentee or semi-absentee.

Band construction

Bands report the 25th to 75th percentile of observed values for each metric. Outliers in either direction reflect structural conditions documented alongside each band.

Limitations

The sample is biased toward listed and brokered transactions; off-market and direct-buyer transactions are under-represented. Geographic concentration skews to top-50 US metros. Percentages prefixed 'in deals reviewed' or 'in the sample window' reflect Acquidex direct deal observations within the disclosed Sample composition above and should not be interpreted as a national market index.
Acquidex·Tokyo·New YorkQ1 2026·AQX-IR-RFG-2026Q1

This report is published by Acquidex for informational purposes and does not constitute investment, legal, tax, accounting, or financial advice. Acquidex is not a registered investment adviser. Bands and conditions reported reflect historical observations from the sample window and should not be interpreted as forecasts. Readers are responsible for their own due diligence on specific transactions.

Roofing Acquisitions Q1 2026 Industry Atlas: Multiples Band, Structural Conditions, Methodology | Acquidex