The Opportunity
A second generation, veteran owned commercial roofing and building envelope contractor serving the San Francisco Bay Area and Sacramento Valley. Founded in 2002 and led by its current President since 2009, the company runs 8 roofing crews (reroofing, single ply TPO and PVC, restoration coatings, waterproofing, leak response and preventive maintenance) and 7 construction crews (tenant improvements, renovations and general contracting, including a dedicated senior living practice).
Customers are commercial property owners and REITs, property managers, healthcare and senior living operators, self storage and retail portfolios, general contractors and municipal agencies. The book is unusually diversified: 176 customers in FY2025 and no recurring client above roughly 4.6% of revenue once a one time national retail project is excluded. More than 3,500 projects completed across 50 plus Northern California cities.
What Sets It Apart
- A rebuilt margin structure. Management exited lower margin project volume by design. Revenue moved from $16.4M to $12.8M while gross profit rose every year and gross margin expanded 5.5 points. Adjusted EBITDA was positive in each of the last three fiscal years.
- An installed operating system. Digital labor capture, photo documentation on every job, GPS fleet tracking, HubSpot CRM, KPI dashboards and AI assisted estimating are in daily use across all 15 crews. The knowledge sits in the system, which eases diligence and owner transition.
- Credentials that cannot be bought. A three classification GC license with full bonding supports prime contracts, and veteran owned DVBE eligibility opens public and institutional work most competitors cannot enter.
- A live recurring service base. 108 plus service accounts produced $1.43M in FY2025 at the highest margins in the business, across 273 leak service calls, and feed the reroofing pipeline.
Financial Summary
| $ in thousands | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Total Revenue | $18,102 | $16,369 | $14,935 | $12,800 |
| Gross Profit | $845 | $1,935 | $2,100 | $2,218 |
| Gross Margin | 4.7% | 11.8% | 14.1% | 17.3% |
| Seller’s Discretionary Earnings | ($248) | $512 | $1,347 | $590 |
| Adjusted EBITDA | ($373) | $387 | $1,222 | $465 |
Fiscal year ends September 30. Tax return basis, normalized for owner compensation and nonrecurring items, net of a market rate replacement salary.
The story is a deliberate trade of volume for margin. Three year average SDE is approximately $815K and three year average Adjusted EBITDA approximately $690K. Forward visibility comes from $3.33M of signed backlog spanning large reroofs, multisite maintenance programs and public agency work. Offered cash free and debt free.
Growth Levers
- Scale recurring service. Roughly 40% of the customer base has no maintenance agreement. Moving from 108 plus accounts toward 150 would lift recurring revenue from $1.43M toward approximately $2.0M on capacity already in the cost base.
- Activate DVBE and public work. License, bonding and veteran credential are in place, and the backlog already includes university, municipal utility and city public works jobs.
- Pursue larger bonded prime contracts. Capture the general conditions margin that otherwise goes to another contractor.
- Fill the construction division. $1.09M across only 17 projects in FY2025, with 7 crews able to absorb more.
- Add the scoped leadership roles. Sales Manager, Operations Manager and Project Manager are already defined; filling them adds throughput and reduces reliance on the owner.
Ideal Buyer
Regional and private equity backed roofing platforms building Northern California density, specialty contractors adding a licensed and bonded GC arm, facility services groups seeking an installed service book, and experienced operators who can bring sales leadership. The President is the sole shareholder, a roofing superintendent and a construction division manager already run daily field execution, and ownership will remain through a defined transition.