Roofing Business Valuations
Independent valuations for roofing businesses across Australia.
Green Standard values roofing businesses that re-roof existing homes, roof new builds for volume and custom builders, repair storm damage for insurers, restore and recoat roofs, and install metal roofing on commercial and industrial buildings. Two roofing businesses with the same profit can be worth very different amounts, because the work behind that profit can be steady or can arrive with the next hailstorm.
A business that holds regular re-roofing and restoration work from direct customers, runs a documented safety system and has a trained crew is a different asset from one that roofs for two project builders at a fixed price per roof, or one whose best year came from a single storm season and an insurer’s work allocation. The owner’s role matters as well: in many roofing businesses the owner measures, quotes, deals with the assessor and inspects the finished roof.
We examine the work mix, the licences and safety record, the crews, the customers and the equipment, then form a view on the earnings a new owner could reasonably expect to keep once the weather, the insurers and the owner’s own hours are taken into account.
How much is a roofing business worth?
A roofing business is worth what its repeatable earnings support after a market wage is paid for the owner’s own work, adjusted for how much of that profit would survive a quiet weather year and the loss of any one builder or insurer. Re-roofing and restoration work from direct customers, a trained crew and a clean safety record support a higher value than storm-driven profit or work from one or two builders.
Roofing businesses we value
What affects the value of a roofing business?
These are the questions we work through when we value a roofing business. Weather, licensing and safety add risks that a profit and loss statement does not show, so we look beyond the margin to how reliable the work is.
Work mix and revenue quality
Re-roofing versus new construction
Re-roofing is sold to owners, landlords or insurers one roof at a time, while new construction roofing is won from builders in volume at keen prices and moves with housing starts. We split revenue between the two over several years, because each carries different margins, payment terms and risk.
Insurance repair work
Insurer and assessor work can fill a crew for months, but it is allocated rather than owned. We look at which insurer panels or repairer networks the business sits on, how it got there, the assessor and loss adjuster relationships behind the work, and whether they would stay after a sale.
Storm-driven volume
A hailstorm or cyclone can produce a year of profit that will not repeat. We look at when the work arrived, how much of it was event-driven, and what the business earns in a year without a major weather event, because that is closer to maintainable earnings.
Metal versus tile
Metal roofing is lighter and faster to lay and is ordered cut to length or rolled from coil, while tile work is slower and heavier and needs loading equipment and a crew with specific skills. We look at the mix, the skills each needs, and whether the business depends on one material or one supplier.
Restoration, repair and maintenance work
Leak repairs, restoration, recoating and gutter cleaning bring repeat customers and a steady base between large jobs. We check whether the business keeps records of past customers and follows them up, or whether each job starts from nothing.
Licences, safety and people
Roof plumbing licence overlap
Fitting gutters, downpipes, flashings and roof drainage can be regulated plumbing work in several states, needing a plumbing licence or a licensed plumber on the job in addition to any building or roofing licence. We check who holds which licence, which work is done under it and what a new owner would need to hold.
Working at heights compliance and safety record
Falls from roofs are the central risk in the trade, and work health and safety laws put duties on the business as well as the roofer. We ask for the safety management system, training and induction records, the incident history and the workers’ compensation premium trend, because a poor record is a liability and a good one is evidence the business is run properly.
Scaffolding and edge protection costs
Perimeter scaffolding, edge protection, safety rails and anchor points are a real cost on many jobs. We check whether they are priced into every quote, whether the business owns or hires them, and whether past margins were lifted by cutting back on protection that a buyer would have to reinstate.
Employed roofers and subcontract crews
Many roofing businesses use labour-only or piece-rate subcontractors alongside employees. We look at the mix, how they are paid, the insurance held and how long each crew has worked for the business. How each arrangement should be classified is a question for the business’s accountant or lawyer, and we consider the cost if it changed.
Estimating and owner dependency
In many roofing businesses the owner measures, quotes, deals with insurers and checks finished work. We deduct a market cost for those roles and look at who else could estimate, hold the customer relationships and sign off quality.
Customers and contracts
Builder concentration
New construction roofing is usually won from a handful of builders, often through a site manager or a buyer. We look at how many builders supply the work, how rates moved at each renewal, payment history and exposure to a builder’s insolvency.
Quoting and material price exposure
Most roofing is quoted at a fixed price from a measure, often before steel, sheeting or tile prices are confirmed. We compare quoted and actual margin on completed jobs and look at how variations such as rotten battens, extra sheeting and hidden structural repairs are priced and recovered.
Warranty exposure
Roofers give workmanship warranties, often alongside manufacturer warranties that depend on correct installation, and leaks can appear years later. We look at the warranty promised, claims history, any provision in the accounts, and whether statutory home warranty insurance requirements apply to the work, which differ by state.
Payment terms and cash flow
Direct customers often pay a deposit and a final balance, builders pay on progress claims or at stage completion, and insurers pay against an approved scope after the job is invoiced. We check debtor ageing, insurer payment times and how supplementary scope variations are settled.
Equipment and operations
Weather-affected utilisation
Rain and wind stop roof work while crews, vehicles and equipment still cost money. We look at how the business schedules around weather, how many days were lost in past years, and whether quiet periods are managed or simply absorbed.
Equipment and fleet
Roofing needs trucks and utes, tile and sheet loaders, elevated work platforms or cranes, roll-formers for some metal work and a full kit for every crew. We consider condition, finance owing and replacement cost, and whether equipment is owned or hired in for each job.
Supplier accounts and rebates
Trade accounts with roofing supply houses and manufacturers bring pricing, rebates and lead times that affect margin. We look at supplier concentration and whether the best pricing depends on a relationship held by the owner personally.
How a buyer reads a roofing business
Buyers of roofing businesses include larger roofing groups adding a region, builders and building services groups bringing roofing in-house, restoration and gutter specialists adding a roofing crew, and experienced roofers buying their way into ownership. They are asking the same question in different ways: how much of this profit will still be here once the owner has gone and the weather has returned to normal?
Businesses with direct customers, repair and restoration work, a documented safety system and a stable crew tend to attract the widest interest. Businesses that depend on one or two builders, a single insurer allocation or a storm season are usually priced more cautiously, however good the recent profits look. An unresolved safety or warranty issue can narrow the field of buyers quickly.
Our valuation addresses those same questions from the evidence in the business’s own records, and sets out which part of recent earnings we treat as repeatable and why.
Adjustments we often make in roofing businesses
Reported profit is restated to what the business earns on a commercial footing before any method is applied. Every adjustment is listed in the report.
Owner wages
Replacing drawings, or a salary set for tax reasons, with a market cost for the estimating, site supervision and tool work the owner actually does.
Storm and insurance spikes
A catastrophe event year, or a one-off allocation of insurer work, that would distort maintainable revenue and margin.
One-off large jobs
A single commercial or industrial roof, or a builder relationship that has ended.
Family members on payroll
Wages paid above or below market rate, or for roles that a buyer would not need.
Related-party yard and vehicles
A yard or shed owned by the owner’s family trust or super fund and rented at other than market rent, and private use of business vehicles.
Subcontractor and labour rates
Crews paid at rates that would not be sustained, or labour-only subcontractors a buyer would need to engage as employees.
Warranty and rework costs
Unusual claims for leaks and rectification, separated from the normal cost of doing the work, with allowance for ongoing exposure.
Safety cost catch-up
Edge protection, training or equipment the business has under-spent on and a buyer would have to put right.
Information we typically review
You upload documents through the secure client portal after the engagement is confirmed. We send a list specific to your business; nothing needs to be gathered before the intake.
The financial pack
- Profit and loss statements, usually the last three years and the current year to date
- Balance sheets for the same periods
- Tax returns where relevant
- Payroll summary and employee information
- Vehicle, plant and equipment schedules
- Major customer information
- Recurring contracts and service agreements
- Revenue breakdown by service line
- Owner remuneration and drawings
- Unusual or non-recurring income and expenses
For a roofing business, also
- Revenue split by type: re-roofing, new construction, insurance and storm work, restoration and repair, commercial and industrial
- Revenue and job counts by insurer, builder and customer type for the last three years
- Insurer panel, repairer network and builder supply agreements, and approved scopes of work
- Licence holders and classes, including roof plumbing, building and any asbestos removal licences
- Safety management system, training records, incident register and workers’ compensation premium notices
- Employee and subcontractor lists with role, tenure, pay basis and insurance certificates
- Warranty terms offered, warranty claims register and any home warranty insurance policies
- Scaffolding, edge protection and equipment schedule, including finance owing
- Supplier accounts and annual material spend by supplier
- Work in progress, progress claims, retentions and debtor ageing by insurer and builder
What a roofing business valuation costs
Fixed fees, confirmed in writing before work begins. The standard fee applies to most established roofing businesses.
Independent Business Valuation
$1,995+ GST
For established trade and field-service businesses requiring an independent valuation.
- Review of financial information
- Normalisation of earnings
- Valuation methodology selected for the business and purpose
- Industry and business risk assessment
- Consideration of plant, vehicles and equipment
- Owner dependency assessment
- Goodwill analysis
- Valuation range and conclusion
- Professionally prepared valuation report
- Draft provided before finalisation
Accountant and Adviser Partner
$1,495+ GST
For accountants and professional advisers who refer valuation matters regularly.
- Streamlined client onboarding
- Adviser kept informed with client authority
- Independent report addressed to the client
- Secure document portal for the client
- Repeat-client workflow
- Partner pricing on every referred matter
Complex Valuations
From$2,995+ GST
For matters with more moving parts. Quoted as a fixed fee in writing before work begins.
- Multiple entities or divisions
- Significant plant and equipment
- Unusual ownership structures
- Partnership and shareholder disputes
- Complex normalisations
- Significant customer concentration
- Historical valuation dates
Fees are fixed and confirmed in writing before work begins.
Roofing valuations: common questions
How much is a roofing business worth?
A roofing business is generally worth what its maintainable earnings support after a market wage is paid for the owner’s own work, adjusted for how much of that profit would survive a new owner, a quiet weather year and the loss of any single builder or insurer. Re-roofing and restoration work from direct customers, a trained crew and a clean safety record support a higher value, while storm-driven profit and builder dependence reduce it. Our guide on how trade businesses are valued sets out the method.
Our best year came from storm work. Will the valuation count it?
Only the part that a new owner could reasonably expect to repeat. We look at the years before and after the event, how the work was won and how much of it was allocated by an insurer rather than earned from customers. The event year is treated as a spike, and the report is built on the earnings that remain when it is set aside or averaged.
Does it matter that our roof plumbing is done under someone else’s licence?
Yes. If gutters, flashings and roof drainage are carried out under a licence held by one person, often the owner or a single employee, a buyer has to hold that licence or employ someone who does. Licensing rules differ by state, so we ask who holds which licence and what each person is licensed to do. Whether an arrangement meets the rules in your state is a question for the licensing authority or your lawyer.
Does our safety record affect the value of a roofing business?
Yes, directly and indirectly. A serious incident, a regulator’s notice or a rising workers’ compensation premium can cut into earnings and narrow the field of buyers, and a buyer will price in the cost of any gaps. We read the safety management system, training records, incident history and premium trend, and say plainly in the report where the record supports or weakens the earnings we have adopted.
Related industries and guides
Valuing a roofing business? Start with a short intake.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.