Tim Russell listens for one question from a founder selling a roofing company.
Russell, CEO of Canopy Services Group, was one of three buyers on Wednesday’s Pantheon session “The Roofing M&A Playbook: Insights from Industry Leaders,” moderated by Nina Katsman, general manager of Exteriors at ServiceTitan. Dennis Elliott of Vertex Service Partners and Chad Colony, CEO of Trusspoint Roofing & Exteriors, joined him.
The question usually arrives late. About two weeks before closing, Russell said, founders panic. The check is not what keeps them up.
“It’s what happens after — what happens to my team,” Russell said.
When a founder asks, Russell knows what he has.
“I know the minute that’s asked. I’m like, yes, this is someone that we can work with. They care about the team,” he said.
Reputation is one of the biggest things Vertex weighs in a target, he said, and its brands average 35 years in business, with one close to 100.
“So trust is everything in this business, particularly when you’re, like, touching someone’s home and with such a big ticket,” he said.
Colony said every successful business has a secret sauce. “Every single location has something that’s made them great,” he said. It’s different from state to state and region to region. “Work with owners to identify that and empower them to make it even stronger.”
After closing, changes come, Colony said, and “it’s really important to tell this entire team why you’re doing this, what are the expected results and how we’re going to get there.”
Russell’s advice for the founders after closing is keep doing what you did before the deal. He meets the team on day one, over breakfast or lunch, then lets everyone get back to work.
“So if you come in on Tuesdays and sign checks and then you golf, then that’s what you should do — because your team’s watching you,” Russell said.
Elliot said the model Vertex has followed from the start is, “Preserve culture, leverage existing talent, lean into the talent. Give them a great opportunity through training.”
All three panelists agree that selling one of their companies can be a huge opportunity for founders. Russell said it’s a life-changing decision.
“It’s a marriage. You’re selling your prized possession. It’s the most emotional thing you’ll go through professionally.”
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