A roofing company in Minnesota
About $4.0M in EBITDA, after storm years of $5.5M to $6.5M
The deal
The situation, the approach, and the outcome
About $4.0M in EBITDA, after storm years of $5.5M to $6.5M
- The situation
- Storm-heavy years had produced $5.5M to $6.5M in EBITDA. The year of the sale was a normal one, about $4.0M, with some pressure on margins.
- The approach
- The normalization discussions with buyers were managed closely, and the deal was structured so the buyer's incentives and the owners' pointed the same way.
- The outcome
- It closed at 6.5x, above prevailing averages. The owners rolled equity into the new company: a second bite of the apple. On the sponsor's growth plan, the second sale may pay out more than the first, creating generational wealth for the ownership group.
How it was done
Four levers, in every sale
The details differ from deal to deal. The work underneath them does not.
The four levers behind every one
- Answer every question firstWeeks of quantitative and qualitative analysis before anything goes to market, so the materials answer every question a buyer or investor will ask. Leverage at the letter of intent starts here: a factual, compelling story that leaves a buyer no risk to price.
- Tell the right storyOperational maturity, technology that sets the business apart, and the quality of its revenue, put in the terms a buyer underwrites.
- Run a competitive processA disciplined process with several qualified buyers at the table at once, so the tension between them sets the price.
- Structure to close the gapWhere buyer and seller see different numbers, the structure bridges them, so the total value to the shareholders is the number that counts, not the headline.
Where it fits
Read the rest of the story
What this kind of deal means for an owner, and the pages that go deeper.
- Equity rolledHow this structure works, what it trades, and what to ask about it.Open
- Who buysThe kinds of buyer that come to the table, and what each one wants.Open
- Selling a business in MinnesotaTaxes, rules, and how a sale runs in the state.Open
- What buyers pay for in constructionThe sector's range, what moves a business within it, and the buyers who look.Open
More deals
Deals like this one
Other sales the team has advised on, shaped the same way.
Advised by members of the FNDRS M&A team, including at prior firms
Consumer products
A premium personal-care brand in California
Founder-built and omnichannel, with about $8 million of EBITDA
20%equity rolled into the acquiring platform, with cash at close for the balance
Advised by members of the FNDRS M&A team, including at prior firms
Read the dealRoofing
A roofing company in Texas
A technology-enabled operator with about $6 million of EBITDA
Sold at9.5xEBITDA
Advised by members of the FNDRS M&A team, including at prior firms
Read the dealFarm equipment distribution
An equipment distributor in Minnesota
Four locations, an authorized OEM dealer, about $26 million of EBITDA
30%equity rolled by the two continuing shareholders; the other two exited in full at close
Advised by members of the FNDRS M&A team, including at prior firms
Read the deal
Questions
What a careful founder asks about a deal page
Members of the FNDRS M&A team advised on this sale. The team's record includes work at prior firms, and no company, buyer, or advisory firm is named. FNDRS is a young firm; deals like this one are the experience its people bring to it.
Because the owners have not agreed to be named. The sector, the place, and the shape of the deal can be shown without them; the name stays with the founders.
No two sales are alike. This deal shows what the work can look like, not what any other sale will bring. The price, the structure, and the timing of a sale depend on the business, the buyers, and the market at the time, and no one can promise them.
A confidential conversation about your objectives, your timing, and your options. No pitch and no obligation. If the honest answer is not yet, we will tell you, and tell you what to work on.
Bring us your numbers
A confidential conversation with the deal team about where your business stands, what buyers would look at first, and what a sale could look like.