How to Make Your Roofing Company Irresistible to Private Equity Firms with AccuLynx

Over the next decade, it is predicted that the roofing industry will be valued at $90 billion and consolidated to just one or two dozen major roofing companies. This change is being impacted in part by private equity firms that are looking to invest in the roofing industry.

If you’re interested in working with a private equity firm, it’s important to make sure your business is worth investing in. In this blog, learn how AccuLynx can equip your business with the tools needed to impress private equity firms.

Why are private equity firms investing in roofing companies?

Private equity firms are investing in roofing companies because they see a stable, growing, profitable, and fragmented market they can capitalize on. But not every roofing company is equally attractive. To catch their attention and secure their investment, your business will need to meet specific criteria.

Here’s what private equity in roofing typically looks for:

• Data transparency and accurate reporting: Ensure that your data and reporting provide private equity firms with a comprehensive view of your business performance. This data should cover many years, and demonstrate positive historical performance. Accurate and transparent data will instill confidence in roofing private equity firms as potential investors.
• Financial stability and growth potential: Steady cash flow is essential. Private equity firms look for roofing businesses that can ensure their investment will generate returns. Be prepared to present bank statements showing detailed breakdowns of each trade you offer. Demonstrating long-term sustained growth and positive historical performance will also indicate potential for future growth.
• Operational efficiency and scalability: Private equity firms need to see that you have established processes in place that can support continued growth.
• Strong customer relationships and retention: It’s essential to demonstrate that you have an excellent customer base supported by positive reviews. Be prepared to provide information such as the percentage of customers who have returned for repairs, or other trade work you may offer.

Why should a roofing company consider working with a private equity firm?

Many private equity firms will often seek to purchase a controlling interest of a roofing business, but will need you to continue managing the company. Contractors may consider selling a controlling share of their company to private equity firm because of the:

• Increase in financial security: Private equity firms can offer capital to help you expand into new trades or markets, invest in new materials or technology, and take on more significant projects.
• Chance for early retirement: If a private equity firm invests in your roofing business, you can phase out your role in the company without having to close it.
• Risk mitigation: Private equity firms can offer expertise to help you implement the best business practices.

How AccuLynx can help you stand out to roofing private equity firms

By using the tools and features in AccuLynx, you can put your business in a position to attract the investment capital of a private equity firm. To stand out to private equity firms, you need to:

1. Streamline your operations
2. Enhance your financial management and reporting
3. Provide real-time insights and analytics
4. Improve your customer relationship management
5. Enhance employee productivity and collaboration
6. Strengthen your compliance and risk management
7. Have the tools and processes in place to scale your business

Streamline your operations

A private equity firm needs to see your business is running smoothly. AccuLynx’s all-in-one roofing software provides you with an intuitive solution that connects every part of your roofing business from sales, to office, production, and management.

Some benefits of using AccuLynx to streamline operations and stand out to roofing private equity firms include:

• Centralized project management: With AccuLynx, everything you need is in one easy-to-access place. AccuLynx lets you store all of your documents, photos, communication, and more in the platform. Having all aspects of your business in one system shows you have an organized operation.
• Time-savings: By using AccuLynx to automate different tasks and communications, you can add hours back to your day. This will show private equity firms your business keeps projects on track with little disruptions.
• Reduction of errors and inconsistencies: You can add checklists to jobs, create templates, and set up notifications so nothing falls through the cracks. This can show a private equity firm that your company is detail-oriented.

Customer success story: “It would be unimaginable to not have AccuLynx. I don’t even know what the alternative is. I wouldn’t be able to breathe if we were just using paper and folders. Where would we store pictures? How would you save everything? Where do you centralize that? Not having roofing software isn’t an option.” – Josh Lyon, Stay Dry Roofing

Learn how other customers take advantage of AccuLynx.

Enhance your financial management and reporting

Attracting private equity firms in roofing depends on businesses having accurate and up-to-date financial data. With AccuLynx, there’s no need to use an out-of-date spreadsheet or jump between systems to manage your finances. AccuLynx lets you track, manage, and report on all of your finances in one place.

You can easily keep tabs on your job costs and track income. With AccuLynx’s financial features, you can:

• Track every penny with detailed job costing
• See your real-time profitability
• Build contracts in just a few clicks
• Create, share, and record invoices

Financial information in AccuLynx can automatically sync between popular accounting programs QuickBooks and Sage Intacct so there’s no need for double data entry.

Provide real-time insights and analytics

Providing a level of data transparency will show a private equity firm your business is trustworthy. AccuLynx has a suite of reports and dashboards you can customize to track the data that matters to them.

Two examples of reports in AccuLynx that might appeal to a roofing private equity firm include:

• Material Spend Report: This report lays out all the different products you’ve ordered by supplier, providing details of material usage and cost. You can show the private equity firm that you have a clear understanding of your material costs, which enables precise budgeting and strategic planning.
• Job Profitability Report: This report shows you contract totals, job count, estimated profit, and actual profit. At the end of the day, a private equity firm is going to want to see if you are making or losing money on your jobs.

AccuLynx has more than 20 customizable reports that give you real-time data on how your business is performing. This knowledge allows you to make more informed business decisions that can have a positive impact on your bottom line.

Customer success story: “It’s all live data. That is what’s so cool about AccuLynx. Once our staff realized how much time AccuLynx would save them, they were asking me to create reports for them.” – Travis Crego, Options Exteriors

Improve your customer relationship management

Customers are the lifeblood of any roofing business. A private equity firm wants to see a steady flow of leads and satisfied customers. With AccuLynx, you can use the CRM features to manage a lead all the way through to a final invoice and beyond.

Take your customer relationship management to the next level with:

• Digital contact records: Store all customer information, including a full history of interactions in a single job file. This allows for personalized communication during and after a job is complete.
• Digital estimates, contracts, and eSign: Create fast, accurate estimates that your customers can sign at their convenience, saving time for both you and the homeowner.
• Text and email messaging: Send 1:1 or automated messages to customers letting them know about appointments, schedule changes, or follow up after the job is complete. This constant communication reassures customers and keeps them engaged, improving their overall experience.
• A Customer Portal: Easily connect with customers throughout a job by sharing documents, exchanging messages, requesting payments, and offering financing. This centralized hub ensures transparency and makes customers feel in control

A strong and happy customer base can play a major factor in whether or not a private equity firm wants to invest in your roofing business.

Customer success story: “AccuLynx is a great resource to help you keep track of all your customers, so you can easily see who you need to follow up with. It helps us keep our company afloat.” – Justin Pontius, Valley Roofing

Enhance employee productivity and collaboration

A private equity firm wants to see a roofing business that excels in productivity and collaboration, where everyone stays connected and has the resources they need to do their job.

AccuLynx has two mobile apps you can take advantage of to ensure your teams are able to work from wherever, whenever.

• The AccuLynx Field App: Teams in the field can enter leads, review job activity, access job files, check invoice statuses, upload photos, and more. This app ensures that you can manage your tasks efficiently and stay updated in real-time from anywhere.
• The Crew App: Your crews can view job assignments, access work orders, send messages, and check in and out of job sites. It also includes a translation feature so you can communicate more effectively with Spanish-speaking crews. This app helps your teams reduce misunderstandings and delays.

Strengthen your compliance and risk management

Being a low-risk roofing business makes your company a safer investment for private equity firms. With AccuLynx’s document management features, you can store all the necessary:

• Permits
• Licenses
• Insurance information
• Safety procedures

All of these documents are stored in your company document library for easy access. You can also easily include them in every roofing proposal you create. This reduces risk due to outdated or missing documentation.

Have the tools and processes in place to scale your business

To appeal to a roofing private equity firm, your business needs to have tools and features in place to handle growth. AccuLynx supports businesses from the time they are a three-user operation to a hundred-plus-user, multi-location company.

AccuLynx has a collection of project management features that enable you to run a more efficient operation that sets you up for success.

• A shared production calendar: Everyone at the company can access appointments, deliveries, and scheduled labor. This keeps everyone on the same page and prevents scheduling conflicts or delays.
• A labor manager: This tool gives you more visibility into your crew availability and ensures the right team is scheduled for the right job.
• Material order builder: Quickly place orders directly to Beacon, SRS, and ABC without leaving AccuLynx. You’re able to set delivery dates and track your order which reduces downtime and keeps projects on schedule.
• Automated task notifications: Alert team members of what they need to do to keep a job moving along.
• Multi-location management: Oversee all of your branches from one AccuLynx account. This allows you to maintain consistent operations and performance standards.

Having an efficient process in place keeps you prepared to take on extra jobs as your business grows. This helps prove to private equity firms your company can handle and plan for growth.

Customer success story: “AccuLynx has improved our scalability. It allows you to keep a pulse on your business at all times and spend more time doing what you really love to do.” – Matthew Jaynes, KPost Roofing & Waterproofing.

Get a competitive edge with AccuLynx

In an industry that is as fragmented and competitive as ever, you need to be doing all you can to stand out. If you’re looking for a roofing private equity firm to invest in your business, AccuLynx will help you stand out to investors.

Schedule a demo of AccuLynx today to see how you can make your business irresistible to roofing private equity firms.