HVAC, home health & home services M&A activity sits at record highs heading into 2026.

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Tennessee PE Hot Market

What's Your Tennessee Roofing Business Worth?

Tennessee has 573 roofing businesses generating an estimated $1.2B in annual revenue. Here is what buyers are actually paying, what drives multiples up or down, and how to find out what your specific business is worth.

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Tennessee Roofing Market · BLS QCEW 2024
Roofing contractors
573
Industry employment
4,736
Est. annual market size
$1.2B
Avg. business revenue
$2.1M
Source: BLS QCEW 2024 Annual, NAICS 23816 (Roofing Contractors, Private Sector). Revenue estimated at ~$250K per employee (NRCA / IBISWorld trade benchmark). Data & methodology

Storm Cycle & Demand Signal

Storm-driven demand. Hail and wind events generate large insurance-restoration revenue waves. Buyers underwrite this carefully: insurance-heavy books get discounted for revenue volatility, while operators who balance retail re-roofing and commercial service contracts command premium multiples.

PE Hot Market

Buyer Landscape in Tennessee

Tennessee is one of the most PE-active roofing markets in the country. Tecta America, Roofing Corp of America, Omnia Exterior Solutions, and Infinity Home Services all have active platforms acquiring here. Roofing companies with $2M+ EBITDA and a healthy retail or commercial mix are fielding multiple buyer inquiries per quarter.

Roofing Valuation Multiples by Business Size · Tennessee

The larger your roofing business, the higher the multiple buyers will pay. Below is where Tennessee contractors typically fall in the 2026 market. Note that revenue mix matters more in roofing than almost any other trade: insurance-restoration-heavy books trade at the low end of each band, while retail and commercial service revenue push toward the high end.

Business Size Valuation Basis Typical Multiple
Under $500K revenue SDE 1.5× – 2.5×
$500K – $2M revenue SDE 2× – 3.2×
$2M – $5M revenue SDE / EBITDA 2.8× – 4.2×
$5M – $15M revenue EBITDA 4× – 6×
$15M – $50M revenue EBITDA 5.5× – 8×
$50M+ revenue EBITDA 7× – 10×

Multiples are directional. Actual sale prices depend on recurring revenue, owner dependency, customer concentration, financial hygiene, and buyer type. Take the Exit Score to see where your specific business lands.

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What Actually Drives Your Tennessee Roofing Multiple

Insurance vs. retail mix

The biggest lever in roofing. Buyers discount insurance-restoration revenue because it depends on storm cycles they cannot underwrite. Tennessee operators with 60%+ retail re-roofing and commercial service revenue command premium multiples, while storm-chasing books get marked down hard.

Backlog & warranty book

A contracted backlog buyers can verify, documented warranty reserves, and a service department that converts warranty calls into maintenance agreements all add turns to your multiple. A thin pipeline and undocumented warranty exposure subtract them.

Crew model & labor

Tennessee has 4,736 roofing workers across 573 contractors. Buyers underwrite your labor model: stable W2 crews and long-tenured subcontractor relationships with clean 1099 compliance both work, but undocumented labor risk kills deals in diligence.

Clean financials

Accrual-basis books with proper percentage-of-completion accounting, reviewed financials, and a clean chart of accounts add real dollars to your exit price. Cash-basis books that cannot separate insurance and retail revenue cost owners 10-15% at the table.

Frequently Asked · Tennessee Roofing Valuation

What is the average roofing business worth in Tennessee? +
A typical roofing business in Tennessee does about $2.1M in annual revenue with roughly 8.3 employees. For an owner-operated shop, that usually translates to $200K to $600K in seller's discretionary earnings (SDE), which at Tennessee's current market of 1.75x to 4x SDE means the business is likely worth $350K to $2.4M in a normal sale. Larger operators above $1M EBITDA get valued at 3x to 8x EBITDA.
Are private equity buyers active in Tennessee? +
Tennessee is one of the most PE-active roofing markets in the country. Tecta America, Roofing Corp of America, Omnia Exterior Solutions, and Infinity Home Services all have active platforms acquiring here. Roofing companies with $2M+ EBITDA and a healthy retail or commercial mix are fielding multiple buyer inquiries per quarter.
How does storm activity affect roofing business valuations in Tennessee? +
Storm-driven demand. Hail and wind events generate large insurance-restoration revenue waves. Buyers underwrite this carefully: insurance-heavy books get discounted for revenue volatility, while operators who balance retail re-roofing and commercial service contracts command premium multiples.
How many roofing businesses are for sale in Tennessee? +
Tennessee has approximately 573 roofing establishments (BLS QCEW 2024, NAICS 23816). In any given year, roughly 4 to 6% change hands through owner retirement, private equity acquisitions, and estate transitions. That means 29 businesses per year, on average, are candidates for sale. Most transactions happen quietly and never hit a public listing site.
What is the fastest way to know what my Tennessee roofing business is worth? +
Take the free Exit Score assessment. It takes about 5 minutes, asks the same questions a buyer or investment banker would ask, and returns your estimated valuation range plus the specific factors moving your multiple up or down. No sales call, no obligation, just the number.

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