Mergers and acquisitions surge: What roofing contractors need to know

By Jesse Sanchez.

Discover why 2025 is shaping up to be a pivotal year for roofing industry mergers and acquisitions — and how contractors can seize the moment.

The roofing industry is primed for a significant wave of mergers and acquisitions (M&A) in 2025 and experts say contractors need to be ready. In this episode of Roofing Road Trips®, host Heidi J. Ellsworth is joined by Shawn Flynn, an M&A specialist, and Stephanie Tsatsos, founder of Rapid RevOps, to discuss how industry players can navigate and capitalize on these opportunities.

Shawn explained that economic shifts and private equity trends are driving heightened activity in the M&A market.  He shared, “There’s a lot of money in private equity right now that it’s just sitting there with their LPs, their limited partners. These are the people that invested in the private equity groups to deploy their capital saying, ‘Hey, you’re sitting on our money. What are you doing? Why are we paying you 2% or whatever the fee structure is, just to have it in your hands? Use it. Get us a return.’”

According to Shawn, roofing contractors should expect increased interest from private equity and search funders seeking to acquire businesses, especially those with strong operational foundations. “There’s so much capital out there. There’s so many people that are looking to acquire these companies,” he said. “In reality, there’s a lot of people on the individual level, search funders... where basically a search fund, it’s this catchy thing you’ll hear a lot on YouTube and the internet right now where it’s someone looking for a business to acquire. They have investors in the background that will put money into an investment that they target.”

But what does it take to make a business attractive to potential buyers? Stephanie expressed the importance of adopting structured operating systems like EOS (Entrepreneurial Operating System), which help businesses professionalize and prepare for growth or exit strategies. She explained, “If I can really get clear on the vision and plan, get everybody bought in on that and see that vision, get the right people, the right seats, et cetera and start documenting my core processes. Now, I’m a really healthy company and potentially maximize an exit.”

For many contractors, the prospect of selling their business — whether to private equity or the next generation — comes with challenges. Stephanie noted the value of early preparation. Stephanie shared, “A lot of times, it’s in the owner’s head and so you’ve got to get that out of the head, get everybody on the same page and then ultimately everybody in the company on the same page. That is how you’ll get what you want from your business.”  

Read the transcript or Listen to the podcast to learn more about preparing your business for M&A or implementing EOS!