Quality of Earnings and CFO services for roofing contractors
Buyers reward service, reroof, and repeat commercial work and discount storm spikes. We normalize the storm years, test the claim receivables, and show the earnings that will repeat.
Talk about a deal Talk about the businessReply within one business day · Fixed fee in writing · No obligation
Roofing deal volume is at record levels
- Roofing M&A reached all-time highs in 2025 in a highly fragmented market where the top two operators hold only about 4% to 6%. Source
- Buyers normalize storm-driven revenue conservatively and reward contracted, repeat, and backlog-supported revenue. Source
- U.S. asphalt shingle shipments fell 9.9% in Q1 2026 while costs rose, pressuring margins. Source
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
BacklogMix: service, reroof, new, stormGross margin per jobGeographic concentrationInsurance receivable agingOwner role in estimating
Two storm years in the trailing period can make an ordinary roofer look exceptional. Buyers know it.
What buyers and lenders test in a roofing contractor QoE
Storm normalization
Revenue and margin from catastrophe events separated and normalized to a typical year.
Insurance-claim receivables
Supplements, depreciation holdbacks, and claim receivables tested for collectability.
Warranty reserves
Workmanship warranty claims history and the reserve a buyer should expect.
WIP and job margins
Percentage-of-completion on open jobs and margin fade on completed ones.
Labor model
Subcontractor crews vs. W-2 labor, and classification risk.
Aggressive add-backs
Add-backs tested against support, because buyers in this sector see a lot of them.
Roofing QoE: what's included
- Storm vs. non-storm revenue normalization
- Insurance receivable and supplement testing
- WIP and job margin analysis
- Warranty claims review
- Subcontractor and labor classification review
Roofing add-ons
| WIP and job-cost testing (contractor complexity) | $2,000 |
| Each additional legal entity | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where roofing owners lose money
- Insurance supplements left uncollected
- Job costing that misses material price increases
- Storm-year cash spent before the slow year arrives
- No backlog report a lender or buyer can rely on
Priced for your industry
Roofers need job costing, receivable discipline, and a cash plan that survives a year without a storm.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- Job costing and WIP schedule
- Insurance receivable and supplement tracking
- Backlog and margin reporting
- Cash planning across storm and non-storm years
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
Roofing engagements Edwin has led
- Finance and accounting work for a residential roofing contractor
- Earnings and financial analysis for a combined roofing and solar contractor
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
Roofing questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
Will a buyer pay for my storm years?
Usually not at full value. Buyers and lenders look through catastrophe revenue to the repeatable base. Showing that base clearly is how you defend the price.
What do lenders look at in a roofing QoE?
Normalized earnings without storm spikes, collectability of insurance receivables, backlog, and whether the owner is the business's only estimator and salesperson.
Buying, selling, or running a roofing company?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.