Choosing the Right Investment Partner for Your Roofing Business

By Adam Cabrera. 

Company culture and safety performance are critical factors when RCA considers potential acquisitions. 

If you're considering mergers and acquisitions for your roofing company, choosing the right investment partner can be a make-or-break decision. In a recent episode of Roofing Road Trips, host Heidi J. Ellsworth spoke with Randy Korach of Roofing Corp of America (RCA) to offer guidance on this crucial topic. 

Randy, who brings extensive industry experience to the table, delved into what RCA looks for when considering potential acquisitions. Factors such as commercial focus, repair and replacement orientation, margins, productivity, safety performance and geography all come into play. 

"Our strategy is all about alignment with the sellers and a focus on building something special for the future," Randy said. Unlike some investors who are just after the highest exit value, RCA places a significant emphasis on building long-term relationships. 

“Relationships in trust. We think it's really powerful. While we do transactions, we do deals, we're not transactional," as Randy put it.  

Finding a partner that aligns with your values, objectives and culture isn't just a smart business move, it's essential for ongoing success in an industry that puts such a premium on relationships and reputation. According to Randy, "Culture is a massive consideration."  

Given that the roofing industry is currently undergoing a wave of consolidation, maintaining a strong, cohesive company culture can differentiate your business and attract the right kind of investment partner. Randy also pointed out the growth opportunities available for team members across the country. By joining forces with the right national partner, a local business can significantly extend its reach, tapping into resources and markets it may not have previously considered. 

Randy’s direct advice for companies contemplating a partnership with a national company like RCA is to listen to different investors and critically assess whether the objectives and culture align. "We tell everyone we speak to, it's equally and maybe more important that they diligence us. They have to get a feel for the future partner in their life's work," he added.  

Listen to the full Roofing Road Trips episode or read the transcript to learn more about RCA and what advice they can give on choosing an investment partner.