How to not regret selling your roofing company

The purchase price matters. But what happens to your employees, culture and legacy after the sale may matter just as much.

There are plenty of horror stories about business owners who sold their companies, received a life-changing check and later wished they hadn’t. Sometimes that regret has nothing to do with money.

Longtime employees lose their jobs. Key managers leave. Benefits or compensation change. The culture disappears. The company name comes off the building. Suddenly, the business they built doesn’t resemble the company they sold.

That’s why one of the most important things you can do before selling is decide what a successful exit actually means to you. And this takes thoughtful time and preparation to do it right.

What do you want for your employees?

For many roofing owners, employees have been alongside them for decades. If protecting those people matters, make it part of the conversation early.

Ask potential buyers about their plans for employees, management, compensation, benefits and future opportunities. You can learn a great deal about a buyer by asking the right questions.

What do you want for the company you built?

Does keeping your company name matter? What about your location, leadership team, culture or presence in the community?

Different buyers can have very different plans. A strategic buyer may envision something completely different than a private equity group, family office or individual buyer. Even two private equity firms can have dramatically different approaches.

Understanding those differences is critical.

Are you choosing a buyer or simply choosing an offer?

The highest offer and the best exit aren’t always the same thing.

Purchase price matters, but so can what happens the day after closing. A thoughtful sale process gives owners the opportunity to compare not only what buyers are willing to pay, but also what they intend to do with the business.

You only get to sell your roofing company once. Before asking what someone will pay for it, ask yourself what needs to happen after the sale for you to look back a year later and say, “I made the right decision”!

At Exit Stage Left Advisors, our job is to help owners understand their options and prepare an exit that reflects what matters most to them. We’ve transacted hundreds of millions of roofing deals and are currently representing over 10 founders in the sale of their roofing business. We work on a success-fee basis only with zero on-going fees.

If you’d like to know more about the market and how to create an exit you won’t regret, go to www.wesellroofers.com and book a free consultation