M&A activity snapshot
Roofing is large, fragmented and consolidating quickly from a low base. KPMG describes a market of over $50 billion in which the top three companies hold only about 6% share. The NRCA estimates there are approximately 100,000 roofing businesses in the U.S.
Deal counts have risen steadily. KPMG's count of select U.S. roofing transactions climbed from 7 in 2018 to 28 in 2022 and 53 in 2024, and its 2026 update says transaction volume in 2025 reached all-time high levels. The larger platforms are now changing hands: FMI notes that many have transitioned into their second or even third equity partner.
Who is buying
Private equity drives most of the activity. KPMG reports that private equity funds remain interested in an initial investment into roofing, while existing platforms search for bolt-on acquisitions.
Commercial and residential platforms are distinct buyer pools:
- Commercial. AEA Investors closed its acquisition of Nations Roof in July 2024, calling commercial roofing a field that has shown long-term resilience. Tecta America, backed by Altas Partners and Leonard Green, reported approximately $1.4 billion of 2023 revenue and still holds roughly 1%-2% of the market.
- Residential reroof. LightBay Capital and Freeman Spogli partnered with Infinity Home Services, a provider of non-discretionary roofing replacement, in January 2023. Brightstar Capital Partners bought Best Choice Roofing, which had more than $277 million of 2023 revenue, in August 2024.
- Public strategics. FirstService agreed to acquire a significant controlling interest in Roofing Corp of America for US$413 million; RCA had approximately US$400 million of annual revenue.
- Regional deals. Sun Capital Partners' affiliate bought Latite Roofing & Sheet Metal, a Florida residential and commercial roofer, in January 2025.
What buyers look for
Revenue mix comes first. KPMG states that acquirers predominantly seek reroofing and service, and new construction tends to be undervalued in M&A markets. On the nonresidential side, regular replacement and repair account for roughly 65% to 70% of total spending, and service and maintenance is the fastest-growing segment at a 5.1% CAGR.
Payor mix is the second question for residential roofers. KPMG finds no consensus on the preferred payor model, though a strategic mix of retail and event-driven business can enhance value. FMI adds that pure storm-chasing businesses can have volatile results, while broad-based contractors benefit from periodic upticks after weather events.
State rules shape insurance-paid revenue. Florida prohibited assignment of post-loss benefits for policies issued on or after January 1, 2023, and removed one-way attorney fees in property insurance suits. An earlier Florida law restricted contractor solicitation for roof-damage claims and allowed separate roof deductibles of up to two percent of Coverage A. In Texas, it is a violation of law for a contractor to help an insured avoid paying the deductible. Buyers check that a target's sales practices fit these rules.
What makes a strong company
Roofers that draw platform interest usually show:
- A majority of revenue from reroofing, repair and service, not new construction.
- A balanced payor mix, with retail work that holds up in years without major storms.
- In commercial roofing, a backlog spread across many customers. KPMG flags that project concentration is a key concern, so buyers focus on backlog and pipeline.
- W-2 sales staff rather than 1099 reps. KPMG notes a trend toward W-2 sales labor models for residential roofers.
- Licensing that does not depend on the owner. Requirements vary: Florida certifies roofing contractors through its Construction Industry Licensing Board, while Texas does not administer licensure for roofing contractors.
Valuation and deal structure
No acceptable public source publishes a roofing-specific EBITDA multiple. The closest proxy is construction services as a whole: PE firms paid an average of 10.6x EV/EBITDA between 2018 and 2025, compared with 7.5x for strategics. That average covers all construction services and skews toward larger deals, so treat it as an upper reference, not a quote for a single-market roofer.
KPMG's 2026 view describes the sector's appeal to buyers as low capital intensity, attractive working capital dynamics, and high free cash flow conversion, the features that support debt-funded acquisitions. No public source tracks earnout or rollover rates in roofing deals; they are negotiated case by case.
Outlook
Expect continued add-on activity with more scrutiny on backlog. KPMG describes normalizing performance in 2025 after faster growth in prior periods, with indications of healthy backlogs. Demand signals are softer: in NRCA's Q3 2025 reroofing survey, the customer inquiries index fell to 47.5 from 58.7, and 27% of respondents reported no project backlog. Owners with recurring service revenue and a documented backlog will be better placed than those dependent on storm years.
Own a roofing company? Run the valuation tool or read what buyers look for in detail. Part of Home Services M&A. See also: trigger-based deal sourcing.