Buying or Selling; Find Out How You Can Benefit From Acquisitions

By Yvette Cruz. 

Two roofing industry professionals discuss their experiences with mergers and acquisitions.  

Owning your own roofing business is no small feat. It’s become your pride and joy, a representation of your integrity and perseverance. So why is it important to understand acquisitions and mergers? If someone is looking to merge or buy out your company, it's helpful to know the pros and cons because it might end up benefiting you and help your business reach its full growth and potential. 

Sponsored by Adams and Reese LLP, this special Coffee Conversations features Ken Kelly of Kelly Holdings and Kelly Roofing and Trent Cotney of Adam and Reese as they talk with Heidi J. Ellsworth about their experience in acquisitions from both a legal and personal perspectives. 

Ken, who’s been in roofing for over 30 years, shares his view on why he chose to sell equity and how he profited from it. Ken says, “For me, coming up on the 50-year mark, coming out of a really solid couple years in the roofing business, we saw an opportunity to take some chips off the table and pocket some equity that we had built up. The typical way that private equity likes to grow is through acquisitions.”  

Not only was it the right time for Ken, but he also shares other factors such as liability. With the family name that has been in business for almost 50 years, it could all be erased from one on-the-job accident. By looking into private equity, Ken was able to make an informative decision. Buying another company about the same size as Kelly Roofing allowed for growth. They were able to be located throughout Florida and create statewide coverage.  

On the flip side, if you’re merging your business and becoming part of the team, it could be hard to loosen the reigns. As with any merging, there will be a new pair of eyes that will see what works and what doesn’t on both sides. Trent sees this most commonly but reminds his audience, “First thing to recognize is that it’s a marathon, not a sprint. The first few months are always challenging. There could be blips. But maintain your relationships within your company. Maintain the people that worked with you, the people that assist you. The ownership has changed, but your ethos and your culture should not.”  

Check out the full Coffee Conversations to learn more about acquisitions and the logistics behind them.