How to Sell a Roofing Company in New Brunswick

New Brunswick's construction sector has recovered strongly since 2021, driven by residential renovation demand tied to aging housing stock, new multi-family development in the Saint John and Moncton corridors, and infrastructure spending from both provincial and federal governments. Roofing contractors in the province are seeing consistent work pipelines, which makes this an opportune moment to sell: buyers recognize the market fundamentals are solid, and they're actively competing for quality operations. If you've built a roofing company over the past 10-20 years in New Brunswick, you're sitting on an asset that buyers from Ontario, Quebec, and the US are specifically seeking out right now.

Who Is Buying Roofing Companies in New Brunswick

The buyer universe for New Brunswick roofing contractors has expanded significantly. Regional PE firms based in Toronto and Montreal are actively rolling up smaller roofing and construction services companies across Atlantic Canada, targeting operations with $1 million to $5 million in EBITDA. Search fund operators, typically backed by institutional capital and operating across multiple provinces, view New Brunswick roofing businesses as stable add-ons to larger platforms they're building. Strategic consolidators like Brookfield Infrastructure and smaller national home services groups are also active, though they typically target the higher end (above $3 million EBITDA). Independent sponsors, often former construction operators with their own capital partners, are acquiring smaller owner-operated roofing companies ($500K to $2M EBITDA) looking for semi-absentee ownership structures. All these buyer types value recurring revenue (maintenance contracts, commercial accounts), established customer bases in growth corridors like Moncton, and experienced crews they can retain. Proximity to Quebec and Nova Scotia adds appeal to buyers building regional networks.

What Your Business Needs to Look Like Before You Go to Market

• Three years of audited or reviewed financial statements plus normalized P&L showing accurate labor, material, and overhead allocation. Many owner-operated roofing companies carry discretionary expenses (vehicles, travel, equipment) that need to be separated so buyers can see true operating profit.
• Customer concentration below 20-25% for your top three clients. Buyers will discount your valuation significantly if you're dependent on one or two large commercial accounts. If you have a few anchor customers, document multi-year contracts and renewal likelihood.
• A documented crew and a transition plan that doesn't depend entirely on you. Roofing is labor-intensive, and buyers want assurance your foreman and supervisors will stay post-closing. Document their experience, compensation, and willingness to transition.
• Clean contracts with major customers and suppliers showing terms, pricing, and renewal dates. Material supply relationships matter; if you have favorable pricing with a regional supplier, that's an asset buyers will value.
• Clear liability insurance records and documentation of safety practices. Roofing carries inherent risk; buyers will review your claim history and WSIB compliance closely. A clean record is worth premium multiples.
• Detailed project accounting showing gross margin by job type (residential vs. commercial, new construction vs. repairs). This reveals which segments are most profitable and helps buyers model growth.

Valuation: What Multiple Should You Expect in New Brunswick

Roofing companies in Atlantic Canada typically sell for 4.5x to 6.5x EBITDA, with most transactions clustering around 5x. This is slightly above the national average for home services (which runs 3.5x to 5x) because roofing has longer customer relationships and higher gross margins than general contracting. New Brunswick specifically sits in the middle of this range. What moves you up to 5.5x to 6.5x: recurring maintenance contracts, low customer concentration, strong crew retention, commercial work (higher margin than residential), and documented multi-year growth. What pulls you down to 4.5x to 5x: heavy dependence on residential repair work, owner-dependent sales, seasonal revenue concentration, or crew turnover risk. As an example, a roofing company with $1.5 million in EBITDA, steady commercial accounts, and a proven management team might sell for $7.5 million to $9.75 million (5x to 6.5x multiple). A similar-sized business heavily weighted to residential work and owner-dependent sales might attract $6.75 million to $7.5 million (4.5x to 5x). Tax considerations matter in Canada: provincial corporate tax rates in New Brunswick are competitive relative to Ontario and Quebec, which makes your after-tax proceeds attractive. However, capital gains inclusion rates and any deferred income plans will affect your net. Work with a Canadian tax accountant early in the process, not after a letter of intent is signed.

The Selling Process, Step by Step

• Months 1-2: Prepare financials, build a data room, and hire an M&A advisor familiar with Atlantic Canada roofing. The advisor's job is to run a controlled auction process, manage buyer interactions, and negotiate terms. In New Brunswick's smaller market, a good advisor has relationships with search funds and regional PE firms already active here.
• Month 2-3: Develop a teaser and executive summary describing your business (3-5 pages, not 20). Include revenue, EBITDA, customer breakdown, growth trajectory, and crew size. Send this to 15-25 qualified buyers your advisor has pre-screened. You'll likely get 8-12 serious inquiries.
• Months 3-4: Sign NDAs with interested buyers and grant them access to your data room. Expect detailed diligence questions about customer contracts, crew composition, safety claims, supplier relationships, and historical margins. This phase typically takes 4-6 weeks per buyer.
• Months 4-5: Buyers submit non-binding indications of interest (IOIs) showing price range, structure (cash vs. earn-out), and timeline. You'll narrow to 3-5 finalists. Run a verbal auction to clarify assumptions and push final offers.
• Months 5-6: Winner signs a letter of intent (LOI) specifying purchase price, payment terms, working capital adjustment, and any seller financing or earnout. In New Brunswick deals, earnouts tied to customer retention are common for 1-2 years post-closing.
• Months 6-8: Buyer completes legal and financial due diligence. They'll verify contracts, interview crew, review historical claims, and model growth assumptions. You'll negotiate reps and warranties coverage (critical for seller protection).
• Months 8-9: Execute purchase agreement, obtain any required consents (supplier contracts, customer notification), and finalize working capital settlement. Closing typically happens 2-4 weeks after legal sign-off. Plan for a 30-90 day transition period where you're on payroll helping with customer introductions and crew onboarding.

Common Mistakes Sellers in New Brunswick Make

• Approaching a single buyer instead of running a competitive process. Roofing companies in New Brunswick are scarce enough that a controlled auction with multiple bidders typically raises your price by 10-20%. A single buyer has leverage; multiple buyers give you negotiating power.
• Underestimating the importance of crew documentation. Roofing is a people business. Buyers will spend weeks vetting your foreman, supervisors, and project managers. If key people won't sign retention agreements or seem likely to leave post-closing, buyers will apply a significant discount or walk away entirely.
• Leaving too much money on the table through aggressive earnout terms. If a buyer insists on 30% of the purchase price as a multi-year earnout tied to growth targets, calculate whether you can realistically hit those targets while transitioning out. Many sellers leave money on the table because they can't or don't want to work for two years post-sale.
• Failing to clean up customer concentration before marketing. If three customers represent 60% of revenue, fix it now by landing new accounts or de-risking big relationships with long-term contracts. Selling a concentrated business means accepting a lower multiple; it's cheaper to diversify before the sale.
• Not engaging a Canadian tax accountant early. Capital gains treatment, corporate vs. personal income, and any deferred compensation structures affect your net proceeds significantly. A $7.5 million sale can net $4.5 million or $6 million depending on structure. Get this right.