Powering growth from day one

By Brendan Meyer. 

How LB Capital turned a small roofing shop into a 200 percent success story with ServiceTitan. 

When LB Capital steps into a roofing business, the trajectory changes fast. The company is known for transforming shops with a level of precision and momentum that sets a new bar, and ServiceTitan sits at the center of that push. Their latest win, a roofing shop that surged in growth by 200 percent in a single year, shows what happens when data, discipline and the right technology align. For LB Capital, ServiceTitan is not just software. It is the engine that helps their teams scale with confidence and proves what smart investments can do. 

Built to sell 

LB Capital’s motto is “Build it to sell it.” That’s because the company sells its shops to private equity roughly 16 months after acquiring them. 

As for the build part? The first thing they do after acquiring a shop is put them on ServiceTitan. “It's non-negotiable,” Mesaris said. 

That’s what happened with Munz Roofing and Siding. LB Capital acquired the shop in July 2023, then rolled up two other roofing shops with it. At the end of ‘23, Munz had $7.44 million in revenue.  

Now? The shop is pacing at $24 million for 2024.  

“Everyone’s jaw drops at the Munz scale,” Mesaris said. “Munz was really built on ServiceTitan.” 

Mesaris said the most critical feature of the software is the reporting and data capabilities. But that’s far from the only one. 

• Enterprise Hub: For starters, Enterprise Hub allows LB Capital to manage and scale all of its different locations.  
• Customer communication: LB Capital leans on ServiceTitan for customer outreach. “We use Marketing Pro for all of our email efforts. Our review requests are automated. (We use) SMS text messages for sending out (customer) invoices, for any balance due,” Mesaris said. 
• Accounting: “We use ServiceTitan for all of our accounting,” Mesaris said. “We do all of our batching and porting into QuickBooks from ServiceTitan. It’s pretty mind-blowing that we can utilize (accounting) with ServiceTitan.” 
• Dispatch Pro: “Dispatch Pro takes the AI data with (the) success (of our technicians), how we rank the job priorities and assigns all the calls for us.” 

And that’s not even half of it. 

“All the features that ServiceTitan offers come together and create this monster of a sales organization,” Mesaris said. “Tracking, call booking rates, conversion rates. The data is really what drives the organization to make its next best decision.” 

CRM of choice 

For years, HVAC and plumbing have been the darlings of the private equity space. Now, roofing is the next big thing. 

“(For Munz), a valuation of a company of that size, we're looking at 8x-10x on EBITDA (Earnings before interest, taxes, depreciation and amortization),” Mesaris said. 

With Munz’s extreme success, LB Capital is now repeating the same process for its other roofing shops. And it's working. LB Capital recently started Roofing Pups, which has five locations under its umbrella. 

“Some of those branches already have $1 million (revenue) months. And some of them are only three months old,” Mesaris said. “We perfected the process.” 

Mesaris said that at first, the team at LB Capital estimated that Roofing Pups had a $100 million dollar valuation. 

“Now, it's probably looking at a $300 million valuation,” she said. 

Mesaris shared that stat on her call with the roofing shop owner who was on the fence about ServiceTitan. She also challenged him with two closing points. “If you want to know how to drive your business in the right direction, you need the data from ServiceTitan,” Mesaris said. “And if you plan to scale and exit your business to private equity, that's the only thing that they're looking for. 

“It's the CRM of choice.” 

Original article source: ServiceTitan