Eustis Roofing

04 Jan Eustis Roofing

Central Florida
Sold To: Vertex Service Partners

What made the business attractive to buyers?

• The Company is one of the largest roofers in the area and had an aggressive strategy for growth which they were able to show buyer how it had been successful over the preceding years.
• The owner’s son was a key part of the management team and agreed to stay on with the buyer.

Challenges:

Accounting records were cash basis, rather than accrual, which might have been fine except the seller changed how they operated due to supply constraints. Normally they ordered roofing materials on a job-by-job basis, however COVID supply constraints made this more challenging, so they ordered large quantities, and for the first time had significant inventory on hand making QoE more difficult.

Beacon’s Role and Results

So, funny story. The Sellers and another buyer reached an LOI. When due diligence began, the seller became overwhelmed and was not able to provide data to the buyers which they needed to close. The buyers called Beacon and asked us to work with the seller to get the deal closed.

Beacon quickly was able to assist the seller in breaking down the due diligence requests into manageable tasks and helping the seller understand the reason for the requested item so the seller was able to meet the buyer’s requests with reports and data easily produced, rather than attempt to provide precisely what was requested which would have taken a lot of work.

Buyer completes due diligence, and then asks to pause the deal because of internal changes. Buyer will not commit to closing after the pause.

Beacon suggests to seller, they know of other buyers in the space and asks would they like us to reach out and see their level of interest? Being a leader in this region, other buyers expressed significant interest. Beacon negotiated a deal with a new buyer for an even higher price.

Why did the owner want to sell?

The market for roofing business is very active and attractive multiples are being paid by groups looking to create a large market. The owner wanted to take advantage of this premium opportunity.

For more information on this transaction or other similar business sales contact:

David Humphrey
Beacon Equity Advisors
781.551.8000

Let Beacon sell your company for you.

About Beacon Equity Advisors – Since 1985 Beacon Equity Advisors, a leading New England Merger & Acquisition (M&A) advisory firm with offices in eight key New England cities, including in Boston, MA Providence, RI and Manchester, NH has represented owners selling closely held distribution businesses. Beacon Equity Advisors’ experience selling value add distribution companies enabled them to tell an engaging story about this Boston, MA area distributor in the M&A marketplace. Highlighting key enterprise attributes enhanced the company’s value as Beacon identified prospective buyers who were able to clearly recognize synergistic opportunities. By matching the right buyer with the right seller, shareholders were able to realize an above market value multiple in the sale of their business in a transaction beneficial for both parties. Beacon represented the Board of Directors and Shareholders in identifying the buyer, negotiating deal terms and brokering the transaction.