Hey SF community,

I am highly considering to send a LOI on a roofing company. Just want to get experienced peoples thoughts on a fair offer.

2023 they did $1.5mm in Adj EBITDA
2022 they did $550k
2021 they did $190k

They grew from hiring more crews, increasing prices to offset rising material and labor costs, got a estimation and scheduling software set up, hired another estimator.

Company does 30% residential 70% commercial, with the commercial being mainly multifamily properties and like small buildings like banks etc

Then 70% of all it's revenue is retro/repair and 30% is new construction

They are asking a 4 x $1.5mm = $6mm

#1 What is a fair multiple for a company of this size/history?

#2 what are your thoughts on the deal?