Guest: Chris Moore of Dealmaker Wealth Society
Host: Jim Ahlin, Roofing Success Podcast
Listen to the Episode: https://roofingsuccesspodcast.com/podcast/how-to-grow-your-roofing-business-by-buying-the-competition-chris-moore-255
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How to Grow Your Roofing Business by Buying the Competition
In the world of residential roofing, growth usually means dialing up your marketing, hiring more sales reps, or grinding out every lead. But what if the fastest path to exponential growth — and long-term wealth — had nothing to do with more door knocking or ad spend?
According to Chris Moore, co-founder of Deal Maker Wealth Society, the answer lies in acquiring other businesses. Chris shares a strategic playbook that shows how roofing contractors can scale quickly, increase their business’s value, and ultimately build real wealth through business acquisitions and roll-ups.
Let’s break down his roadmap to success.
From Roofer to Investor: The Mindset Shift
The first step, says Chris, is to stop thinking like an operator and start thinking like an investor. Too many roofing business owners treat their company like a job — not an asset.
“You’re not just the owner. You sit in a seat. If someone is going to buy your company, they’re buying ownership — not your job.”
Chris emphasizes that a best-in-class company runs without the owner in the day-to-day. That means no more estimating jobs, handling customer service, or running dispatch. It also means building systems and a team that can generate leads and close sales predictably, with or without you.
Understanding Roll-Ups and EBITDA Arbitrage
One of the most powerful strategies Chris teaches is “EBITDA arbitrage.” In simple terms, it’s buying a business at a lower valuation multiple, combining it with yours, and selling the combined entity at a higher multiple.
Here’s how that plays out in roofing:
- A single roofing company with $500k in EBITDA might sell for 3x = $1.5M.
- But two combined companies with $1.5M in EBITDA might sell for 5x = $7.5M.
- That’s the “1 + 1 = 3” concept — and it’s the core of roll-up strategies.
Single Silo vs. Multi-Silo Roll-Ups
Chris explains two primary types of roll-ups:
- Single Silo Roll-Up: Acquiring other roofing companies to increase market share. Ideal for those wanting to scale within the same service vertical.
- Multi-Silo Roll-Up: Acquiring complementary businesses like HVAC, gutters, or cleaning services, all serving the same customer avatar. This unlocks cross-selling opportunities and creates operational synergies.
In either model, the goal is the same: consolidate, increase EBITDA, and position your business for a high-multiple exit.
Best-in-Class Businesses Get Bought — Not Just Sold
If your endgame is selling to private equity (PE) or a large trade buyer, your roofing company needs to be best in class. That means:
- Owner Independence – The business must run without you.
- Predictable Customer Acquisition – Multiple lead sources and systems must be in place and measurable.
- Strong Team – Skilled operators and leaders who own their roles.
- Solid Financials – Clean books and a history of profitability.
“No one is looking to buy a job. They’re buying predictable revenue and a team that can manage it.”
Leverage the SBA — and Buy Without Cash
One of the lesser-known strategies Chris reveals is how roofing contractors can buy competitors using SBA 7(a) loans — often with little to no money down if the businesses share the same NAICS code.
This means you can scale through acquisition faster than through traditional marketing or sales — without draining your cash reserves.
Avoiding the Landmines of Acquisitions
Chris shares several common pitfalls that roofing business owners make when buying companies:
- Deal Heat: Getting emotionally attached and overlooking red flags.
- Only Looking at Brokered Deals: Off-market deals are better (80% of business acquisitions are off-market).
- Skipping Seller Financing: Many deals include seller terms. Assume it’s on the table.
- Skipping Due Diligence: Always outsource deep diligence. Measure what’s being tracked — if a company doesn’t track lead sources, that’s a red flag.
And perhaps most importantly, don’t go it alone. You need a deal team: attorneys, diligence experts, and financing advisors who understand the process.
From Acquisition to Wealth Creation
Ultimately, growing through acquisition isn’t just about adding more revenue — it’s about building wealth.
Chris highlights a sobering stat: the average business-owning baby boomer has just $202,000 saved for retirement outside of their home.
“If your business is your retirement plan, you need to pay attention. You’re not building wealth unless you have an exit strategy.”
Whether you’re acquiring other companies or positioning yours to sell, the key is to be intentional. Build transfer value. Understand your enterprise value. And prepare for a wealth-building surge when you exit.
Closing Thoughts
Growth doesn’t have to mean more hustle. With the right knowledge, mindset, and team, roofing contractors can build wealth by acquiring others — not just working harder in their own business.
Chris and his team at Deal Maker Wealth Society are equipping owners with the tools to do exactly that. Whether you’re planning an exit or looking to create a local roofing empire, this playbook is worth a serious look.
FAQs: Roofing Business Takeaways from This Episode
Topic: Growth-Expansion
Q: What is a roll-up, and how can it help grow my roofing business?
A: A roll-up is a growth strategy where you acquire multiple businesses — either in the same industry (single silo) or in complementary verticals (multi-silo) — to increase your business’s overall value and EBITDA. This strategy can make your company more attractive to private equity or larger buyers and allows for operational and financial synergies.
Topic: Finance-Accounting
Q: What is EBITDA arbitrage, and why is it important?
A: EBITDA arbitrage is the process of buying businesses at a lower valuation multiple and combining them to sell at a higher multiple. For example, two $500k EBITDA companies might each sell for 3x individually but could command a 5x multiple together due to scale and efficiency.
Topic: Legal-Compliance
Q: Can I buy another roofing company with no money down?
A: Yes, through SBA 7(a) financing — particularly if the business you’re acquiring shares the same NAICS code. This allows you to fund the acquisition with little to no upfront cash, leveraging government-backed loans.
Topic: Operations-Management
Q: How do I make my roofing business “best in class”?
A: Build a business that runs without your involvement, has predictable customer acquisition systems, employs a solid team, and maintains clean, profitable financials. These qualities attract higher valuation multiples from buyers.
Topic: Sales
Q: Why do I need to track how I get leads?
A: Understanding your lead sources is critical. If you can’t measure which marketing channels work, you can’t scale or transfer that process to a new owner. Predictable sales engines are key to business value.
Topic: Growth-Expansion
Q: What’s the difference between a single silo and a multi-silo roll-up?
A: A single silo roll-up acquires companies in the same niche (like roofing), while a multi-silo strategy involves buying complementary services (like HVAC or asphalt) that serve the same customer base, allowing for cross-selling and greater value.
Topic: Technology-Innovation
Q: Can software help me manage multiple acquired businesses?
A: Yes, using CRM, accounting platforms, and marketing automation tools can help streamline operations across multiple locations or brands, making your roll-up more efficient and scalable.
Topic: Legal-Compliance
Q: Is seller financing common in roofing business acquisitions?
A: Absolutely. In fact, most deals Chris and his team have seen include some form of seller financing or earn-outs, making the purchase more manageable for buyers and tax-efficient for sellers.
Topic: Education-Training
Q: Where can I learn how to buy other roofing businesses?
A: Start with free resources like startdoingdeals.com, or consider joining a coaching program like Deal Maker Wealth Society to become a sophisticated buyer and build your acquisition strategy.
Topic: Marketing
Q: Can I grow faster through acquisitions than traditional marketing?
A: Yes. Buying another business with existing customers, revenue, and systems is often a faster and more scalable growth path than increasing leads and closing them one by one.
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