What if a roofing company’s work comes mostly from one builder?
A roofing company that gets most of its work from one builder or general contractor depends on that relationship surviving the sale. Test whether the builder deals with the company or with the owner personally, meet the builder before closing, and plan the handover around that one relationship.
Some roofing companies keep their crews busy through one home builder or general contractor. That can look steady on paper, and it can also mean the business depends on one relationship. A buyer should find out early what the relationship rests on. The whole review is covered in buying a roofing contractor in Canada. This page takes the one-builder risk by itself.
Find out who the builder actually trusts
Ask the seller how the work began and who phones whom when a job comes up. If the builder calls the owner’s mobile, the relationship may belong to the owner and not to the company. Ask who handles scheduling, warranty callbacks and complaints. The answers show whether the builder knows the crew leads and the office, or only the person selling.
Read what the arrangement is built on
Ask whether there is a written agreement, a standing price list or only a habit of repeat work. Ask how long the builder has used the company and whether other roofers get a share. Ask what would happen if the builder stopped sending work. Your lawyer can read any written terms and tell you whether they carry over to a new owner.
Plan the introduction and the handover
Many buyers ask the seller to introduce them to the builder before closing, with the seller present. A transition period in which the seller stays involved can help the builder feel the service has not changed. Ask your lawyer how that period, and any promise from the seller not to take the builder’s work elsewhere, could be written into the agreement.
Questions worth asking the builder
- What do you value most about working with this company?
- Would you keep using it under a new owner?
- Do you use other roofers, and for what kind of jobs?
- Have there been callbacks or disputes the owner handled personally?
Related reading
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
- 04Canadian Federation of Independent BusinessResearch dataSuccession Tsunami: Preparing for a decade of small business transitions
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