The
industry witnessed much merger and acquisition activity in 2021 and
2022. Many roofing contractors received calls from business brokers,
consolidators, competitors, and private equity groups (investors)
looking to acquire commercial and residential roofing companies. These
are external buyers versus internal transactions like a Management
Buyout (MBO) or an Employee Stock Ownership Plan (ESOP).
The
ideal method for a seller to exit the business is to have a
comprehensive and cohesive exit plan, ideally years before the exit,
which outlines the various options and strategies for minimizing taxes
and protecting proceeds from the sale. In addition, the goal should
encompass the following: