Build a stronger business before it’s time to sell

By Jesse Sanchez. 

H.S. Exit Advisors shares six strategies roofing contractors can use to strengthen their companies and prepare for a successful exit. 

For roofing contractors, preparing to sell a business should begin long before an owner is ready to walk away. On this episode of Roofing Road Trips®, Karen Edwards spoke with Gokul Padmanabhan of H.S. Exit Advisors about the firm’s “dig a moat, build a castle” framework and why exit readiness starts with how owners approach their businesses today. 

After working on more than 600 transactions in home services, Gokul explained that only two out of every 10 prospective clients are actually ready to take their businesses to market. One of the biggest problems is waiting until performance begins to decline before considering an exit. Reflecting on his own experience selling a business, Gokul emphasized, “I think the sooner you come to that realization, the higher you can sell your business when it's actually on top.” 

Preparation does not mean an owner has to sell immediately. Instead, Gokul encouraged contractors to regularly assess the company’s value and readiness so they understand their options when circumstances change. He advised, “Just like you go get a physical or you get a blood test every year, you need to value the company every year.” 

The strongest businesses H.S. Exit Advisors has studied also share six characteristics: an owner’s mindset, mastery of company financials, a customer-centric approach, a profit-first perspective, engaged and satisfied employees and a bold vision, mission and purpose. 

Developing an owner’s mindset can begin with setting aside time to think beyond daily operations and consider the company as a long-term asset. Gokul recommended starting small, explaining, “Take one hour on a Friday, one hour, take a long lunch and really just sit down and about where you want the business to be three years from today.” 

Those habits can help contractors build stronger, more organized businesses, no matter if an exit is soon approaching or remains years away. 

Listen to the podcast or Watch the conversation to learn more about preparing your roofing business for a future exit!