How to Determine the Value of Your Roofing Company

Whether you are planning to open a new roofing company or looking to sell your current business, understanding how your company is valued is a key factor in determining its true worth. The value of your business depends on the type of services you provide, your industry and your business structure. For example, a roofing company that provides roof repairs and maintenance will have a higher profit margin than a company that specializes in roofing only.  Learn more about this at Water Damage and Roofing of Austin

Using online review sites to get customers to leave reviews can help you get your name in front of new customers. Most review sites allow you to add photos, details and a custom description of what your business offers. You can also add links to your own website to help prospective customers learn more about your services.

Providing a written quote for a roofing project is a good idea. A written estimate allows homeowners to stay on track and to avoid hidden fees or costs. Some companies also offer extended warranties. This type of warranty may cover a portion of the labor cost of repairing a leak caused by a material malfunction.

Another good idea is to join local business associations and trade organizations. These organizations offer networking, continuing education and business advising. They can also help you figure out what types of insurance your business will need. Some states require specific types of insurance. In addition, they may be able to help you with business licensing. You can also get assistance with marketing your business.

Getting a business valuation from a qualified professional can help you determine the value of your roofing company. The valuation expert will take into account many different factors. The EBITDA (earnings before taxes) multiple is one of the most common valuation ratios. The multiple is based on the difference between the amount of income a business generates and the amount of money it pays out. The EBITDA multiple is normalized for differences in capital structure, taxation and fixed assets.

A good business valuation can help you determine a fair listing price. Whether you are planning to buy or sell a roofing company, this process can help you determine whether it is a good idea to make a bid. The value of a roofing company is generally worth between 0.33 and 0.51 times its revenue. The highest multiple is generally reserved for businesses with annual revenue of over $3 million.

The best business valuation will also show you how to maximize the value of your business. This is done by multiplying your revenue by the relevant multiple. For example, if you have $530,000 in annual revenue, the best multiple you can get would be an EBITDA multiple of three to five. This ratio is normalized to allow you to compare your business to other similar roofing companies.

Contact Info

Water Damage and Roofing of Austin
9711 Beck Cir
Austin, TX 78758
(512) 820-6505