Private equity buyer will launch a strategic roofing services platform by combining the company with a second, counterpart acquisition
March 2026 – IG has provided assistance in the completed acquisition of a commercial roofing services company. Headquartered in Southern California and in business for over 30 years, the company specializes in re-roofing, new roof installation, repair and maintenance. Customers include commercial building owners and property managers. While the majority of the company’s revenue is from re-roofing, overall its services are to 90% commercial and 10% residential customers. The company enjoys strong loyalty with 75% of revenue from repeat customers. Post-sale, the seller will remain with the new company, which will initiate an aggressive growth plan.
The buyer is a private equity firm that executes a buy and build strategy by identifying a highly fragmented and growing industry, then investing in strong businesses with substantial growth prospects. In this case, the firm recognized the roofing sector as a valuable investment space, given its continued relevance as an “essential need” service that will see long-term demand. The buyer pursued two roofing companies simultaneously and, combining them, has accomplished the formation of a new platform that it will build to become a market leader in Southern California.
Two of the key issues that impacted the deal, but were ultimately resolved, included the immigration status of many of the company’s employees, as immigration policies emerged to be a dominant concern in the U.S during this time. Secondly, the three parties – one buyer, two sellers – found it extremely challenging to manage the due diligence process with the intent of closing the two roofing companies in unison.
“From the start, our client was a motivated seller and the company was appealing to various buyers,” said Sam Bath, IG’s Senior M&A Advisor in Southern California. “Remarkably, we were under exclusive LOI with the buyer just ten weeks after our initial engagement. But then the diligence stage took longer than expected. We supported our client throughout the fluctuations of the deal and it was satisfying to get it across the finish line.”
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IG represents clients from across the U.S. with offices in several key regions of the U.S. The firm works in tandem with its buy-side services division, Acquisition Partners (AP), to provide a full range of M&A services.
For more information about IG visit www.independencegroup.com
For more information about AP visit www.acq.partners
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