Why Waiting to Sell Your Roofing Business Might Cost You More Than You Think
When I speak with roofing company owners, one of the most common things I hear is, “I’m not ready to sell yet. I still have plenty of growth ahead of me.” While this might be true—your business could grow—what’s often overlooked is that waiting could actually cost you more in the long run than partnering with us today.
Here’s why.
A Dollar Today Is Worth More Than a Dollar Tomorrow
Let’s say your business is currently at $10M in revenue with a 15% EBITDA margin. That’s $1.5M in annual EBITDA. Today, we might value your business at 6x EBITDA, which means you’d receive $9M in total value for your company.
At Infinity Home Services (IHS), we typically pay 70-80% in cash upfront and allow owners to roll 20-30% into IHS stock. That stock has the potential to grow significantly as IHS scales through more partnerships, increased revenue, and operational efficiencies.
Now, let’s assume you wait three years because you believe you can double the size of your business to $20M in revenue. What happens then?
1. Market Conditions Could Change
The 6x EBITDA multiple you’re counting on today may not be there three years from now. Roofing valuations are influenced by:
Macro-economic factors like interest rates, inflation, and recession risk
Micro-economic trends, including local competition and shifts in demand
If valuations in the industry drop to 4x EBITDA, your $20M business with $3M EBITDA would now be worth $12M, not the $18M you expected. You’ve put in three more years of effort, only to net a marginal gain—or potentially less—than you could have received today.
2. Competitive Landscape Could Change
Waiting to grow your business also introduces a risk: we may already have a partner in your market when you’re ready to sell.
For example, let’s say we partner with another strong roofing company in your city next year. By the time you decide to sell, your biggest competitor is now part of IHS, benefiting from our resources, systems, and purchasing power. Their growth accelerates while you’re still trying to scale independently. That makes your business:
Less attractive to us because we already have a partner in your market
Potentially worth less in a more competitive environment
3. Rollover Equity Becomes More Expensive
Here’s where it really stings.
When you partner with us today, we offer IHS stock at its current value—let’s say $1/share. That same stock could be worth $5/share in three years as we continue to grow and acquire more businesses.
By waiting, you’re missing out on the opportunity to roll equity into IHS at the ground level. Instead of buying in at $1/share, you’ll be paying $5/share—significantly reducing the value of your rollover equity and long-term gains.
The Numbers in Action
Let’s break it down:
Scenario 1: Partner Today
Current EBITDA: $1.5M
Valuation at 6x: $9M
Cash at Close (80%): $7.2M
Rollover Equity (20%): $1.8M in IHS stock at $1/share
Future Value of IHS Stock: If stock grows to $5/share, your $1.8M becomes $9M
Total Future Value: $16.2M
Scenario 2: Grow for 3 Years
Future EBITDA: $3M
Valuation at 4x: $12M
Cash at Close (80%): $9.6M
Rollover Equity (20%): $2.4M in IHS stock at $5/share
Future Value of IHS Stock: $2.4M remains $2.4M because you bought in at a higher price
Total Future Value: $12M
By waiting, you’ve actually cost yourself $4.2M.
The Power of Partnering Now
Partnering with IHS allows you to lock in today’s valuation, secure a significant cash payout, and capitalize on the growth of IHS stock. As we scale, so does your wealth.
We’re not just buying your business—we’re inviting you to be part of something bigger. With our capital, resources, and proven track record, we help our partners grow faster and more profitably than they could on their own.
Waiting might seem like the safer play, but the truth is: the best time to partner is when you still have growth ahead of you.
Ready to Talk?
If you’re curious about what a partnership with IHS could look like for your business, let’s have a conversation. The next chapter of your business’s growth story could start today—and we’d love to be part of it. You can also check out our free business valuation page to see what your company might be worth.
