High cash flow… but surprisingly little left over.
This roofing company is listed at $5.5M, generating about $1.31M in cash flow on roughly $11M in revenue.
At first glance, that looks like a massive, high-performing business.
But once you run the numbers, the story changes.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $500K per year.
That sounds like a lot — until you realize you paid $5.5M to get it.
Where It Breaks
This deal has two major problems.
- Low margin: 11.9% vs ~22.8% industry average.
- Overpriced: 4.2x vs ~2.2x typical multiple.
You’re paying a premium… for below-average performance.
The Scale Trap
This is where buyers get fooled.
They see $1.3M in cash flow and assume it’s a great deal.
But scale doesn’t equal efficiency.
- More revenue doesn’t mean better margins.
- Bigger teams increase complexity.
- Higher overhead eats into profits.
- Thin margins amplify risk at scale.
This business is big — but not efficient.
What You're Really Buying
A large operation with tight economics.
- 22 employees
- Complex operations
- Thin margin buffer
- High execution risk
At this size, small issues become big problems fast.
Industry Reality
Roofing isn’t a low-risk space either.
- Default rate: ~4.8% vs ~3.6% average.
- Project variability: Jobs fluctuate.
- Cost pressure: Labor and materials shift quickly.
Thin margins make all of that worse.
What This Really Is
This is a big business priced like a top-tier operator… without top-tier performance.
- Strong revenue
- Weak efficiency
- High valuation
That combination rarely works out well for buyers.
BizHub Verdict
This deal scores a 4.9 / 10.
Not because roofing is bad — but because you’re paying top dollar for below-average economics.
Big numbers… small margin for error.
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