Roofing contractor, Okanagan: first read
Source: Business Finders Canada listing MLS 1598 (share sale), read 2026-10-26. Listing figures are the seller's.
Roofing and construction contractor, Okanagan, listed at $445,000 as a share sale with reported annual sales of $1,962,000 and cash flow of $83,600 (listing figures). Over 30 years in the region; sloped and flat roof systems from asphalt shingle to TPO and EPDM membranes; new installations, tear-off replacements, maintenance and leak repair; inventory listed at $10,000 to $20,000; the listing was last updated 2026-08-13.
First read: the asking price is 5.3x the stated cash flow, and that cash flow is 4.3% of sales, which is thin for a roofing contractor and leaves little room for a bad season or a warranty call. At 20% buyer equity, a 15% vendor take-back and a 65% term loan, debt service would run about $70,000 a year. The listed cash flow covers that about 1.2 times, just under the 1.25x a lender usually looks for; at 30% lower cash flow coverage falls to about 0.84x. Because it is a share sale, the buyer takes on the company's history: warranty obligations on roofs already installed, WorkSafeBC standing and any tax or payroll exposure.
The three things a buyer should check first
- What the $83,600 is: owner's earnings before or after a market wage, and what the owner actually does on site and in estimating.
- Warranty terms given on past jobs, open claims, and the WorkSafeBC rate class and claims history that come with the shares.
- Gross margin by job type and the share of revenue from new construction versus re-roofs and repairs, with the backlog and holdbacks on builder work.
A Deal Risk Screen on this listing would rebuild the earnings, score the four risk pillars, set out the price the cash flow supports at a stated coverage, and give the five questions to ask before an LOI. Two sample screens are on the samples section of the home page.
This note is general information from public listing figures, not advice on this purchase. Deal Diligence has no connection to the seller, the broker or the business.