Over the past two years, Myrtle Beach’s roofing industry has quietly undergone a major shift—one that many homeowners haven’t noticed.
Locally owned roofing companies are increasingly being bought out by private equity firms, turning familiar names into corporate-owned businesses.
But what does this mean for you as a homeowner?
And how could it impact the cost of roofing in the future?
As a locally owned roofing company with over 40 years of experience in the Myrtle Beach area, we’ve never seen a transition like this in our trade. It began with HVAC companies, but now private equity firms are targeting roofing businesses as well.
While we plan to stay privately owned, these changes raise an important question: What does this trend mean for homeowners in Myrtle Beach at large?
In this article, we’ll break down what happens when a private equity firm takes over a roofing company—and what that means for you when it’s time to replace or repair your roof.
What is Private Equity in the Roofing Industry?
Private equity is when large investment companies use money from people or organizations to buy other businesses that aren’t on the stock market. They try to make those businesses better and more valuable, then sell them later to make a profit. Usually private equity firms will sell a business to another firm, this is often called a “secondary buyout” but they may also sell to:
- Other institutional investors – such as pension funds or insurance companies.
- The public market – this is the least common option, but this is done by taking the company public through an IPO (Initial Public Offering).
As of April 2025, two major local roofers have recently decided to sell their businesses. These companies include:
- Monarch Roofing: Monarch Roofing sold their company to a private equity firm called Vertex in 2024.
- Lenox Roofing: Lenox Roofing was absorbed by a national roofing network called Roofing Pups in 2024.
While each company may choose to operate differently under new ownership, these changes reflect a broader trend of private equity involvement in the roofing industry.
Roofing companies, particularly those that are locally owned, are an attractive target for private equity firms. This is part of the reason why so many private equity firms are buying local roofing companies. But how does this affect homeowners in need of a roof replacement in Myrtle Beach?
How Roof Replacement Costs May Rise Due to Private Equity Buyouts in Myrtle Beach
When roofing company owners are looking toward retirement and their businesses are profitable, they’re a diamond in the rough for private equity firms. This is because a private equity firm can purchase their business at a low price, streamline operations, raise the cost of their roofing services, and later sell the newly polished business at a higher valuation.
But there’s more to this system. After all, if a roofing company’s services are significantly more expensive than their local competitors, won’t they lose business?
Well, it’s all part of the plan.
Here’s how it works:
- Buy low: A roofing company with $100,000 in earnings might be purchased for $200,000 (a 2x EBITDA multiple).
- Raise prices: The private equity firm raises the average price of a roof by 50% or more.
- Accept fewer customers: Even if fewer people buy at the new price, the company still makes more money.
- Profit margins soar: With fewer jobs but more revenue per job, overhead goes down and profit goes up—dramatically.
- Sell high: Once profitability is maximized, the firm sells the company to a bigger investor, sometimes at 6-7x earnings.
This isn’t just a theoretical exercise. We’ve seen signs that this model is gaining traction in Myrtle Beach. However, how individual companies navigate their ownership transitions may vary.
So what does it mean for homeowners?
How Do Private Equity Owned Roofing Companies Affect Myrtle Beach Homeowners?
As roofing companies change hands, the first thing homeowners may notice is sticker shock.
In some markets, roofs that once cost $10,000 have jumped to $15,000 or more, sometimes without noticeable differences in workmanship or materials. Whether this pattern will hold true in Myrtle Beach remains to be seen, but it’s a trend worth watching.
Over time, private equity firms often acquire several roofing companies within the same region. This can make it harder for homeowners to spot what's really happening—especially since the common advice is to get three roofing estimates before choosing a contractor. But if all three quotes come from companies under the same private equity group, the homeowner ends up comparing prices from the same playbook—not a range of truly competitive options.
Not only that, but if a handful of large firms control most of the roofing marketing in Myrtle Beach, prices could double across the board in the next 10-15 years. Financing a new roof may become as normalized as financing a car, with homeowners expected to carry loans for their roof replacements.
How Private Equity-Owned Roofing Companies Impact the Community
Often local roofing companies will use a portion of their profits to enrich their community. Whether that’s sponsoring a local event, making donations to local nonprofits, or hiring local people to work at their business, the community typically benefits as a whole from privately owned businesses.
On the other hand, private equity firms are often national or global investment firms with no local presence. While some private equity-owned companies may still choose to invest in local initiatives, it ultimately depends on the priorities set by their leadership teams.
Private equity firms are known to give to shareholders, boardrooms, or Wall Street, but we can't say whether or not that's the case for private equity-owned roofing companies in Myrtle Beach.
If local impact matters to you, sticking with a privately owned roofing company might be the way to go.
How to Know if You’re Hiring a Privately Owned or Private Equity Owned Roofing Contractor
Whether or not you’re aware, the shift in the Myrtle Beach roofing industry is having an impact on the community. Whether it's rising roof replacement costs or less funds going toward local efforts, the impact could be felt over the next few years. So what can you do if you’ve decided you want to give privately owned roofing companies your business?
- Ask who owns the company. Before you sign a contract, ask whether the roofing company is still locally owned and operated.
- Get diverse estimates. Be sure you’re truly comparing quotes from independent companies—not three brands under the same corporate umbrella.
- Shop values, not just price. A cheaper roof isn’t always better, but neither is a sky-high quote with no added benefit. It's best to look out for competitive pricing.
- Support your community. Local roofers are more likely to care about their reputation in the neighborhood and reinvest in the region.
As always, if you have any additional questions about changes in Myrtle Beach’s roofing industry, we’re happy to provide you with full transparency so you can make the best decision for your home.
