Sell Your Restoration Business

Why restoration

Margins follow expertise

Restoration is not a typical service business. The economics are excellent for owners who've built the right relationships, certifications, and response infrastructure.

01

Insurance-driven demand

Most revenue runs through homeowner policies, commercial property carriers, or TPAs. Demand is non-discretionary — when something floods or burns, the work happens. The business is largely insulated from consumer pullback.

02

High SDE margins

Well-run mid-size restoration companies regularly produce 18–28% SDE margins, well above most service categories. Equipment is meaningful but predictable (air movers, dehus, monitoring kits) — and reuses across jobs.

03

Carrier relationships compound

Approved-vendor status with a regional carrier or TPA is a real moat. New entrants spend years getting on those lists. We protect those relationships and the people who built them.

Acquisition criteria

What a Stockton fit looks like

Restoration has more nuance than most categories — these are the traits we pay attention to in diligence.

$500K–$4M annual revenue

Established crew, equipment fleet, and carrier relationships. Not a one-truck startup.

IICRC-certified team

A bench of certified technicians (WRT, ASD, AMRT) — not just one cert holder running the show.

Carrier or TPA approvals

Approved-vendor relationships with at least 3–5 carriers / TPAs. Diversified, not single-source.

Operations manager in place

Someone running dispatch, estimating, and Xactimate workflows day-to-day. Owner is not the only estimator.

Healthy A/R aging

Insurance receivables under 90 days. We respect that some carriers move slowly — we just want to see it's managed.

Multi-year profitability

Three years of clean financials. We adjust for unusual catastrophe years (storms, floods) when reading the run-rate.

How a sale works

Three steps. Sixty to ninety days.

Restoration deals have more diligence depth than other categories — but the process structure is the same.

1

Initial conversation

30 minutes, fully confidential, no NDA. We learn about your carrier mix, certifications, equipment, and what you want out of a sale.

2

Diligence + offer

Three years of financials, job-level margin review, A/R aging, certification roster, equipment list, carrier approvals. Detailed but not bureaucratic.

3

Close + transition

Cash at close. Transition support that protects carrier relationships — we make introductions personally, not via templated letters.

Questions

Selling a restoration business: FAQ

What multiple do restoration businesses sell for?

Profitable restoration companies in the $500K–$4M range typically sell for 3–5× SDE, materially higher than most service businesses. Carrier diversification, certification depth, and operational independence from the owner are the biggest swing factors. A heavy concentration with one TPA or one carrier pulls the multiple down.

Do you require carrier or franchise approvals to be transferable?

Most carrier and TPA approvals are tied to the operating entity, not the ownership. We structure deals (typically asset purchases with operating-entity continuity, or stock sales when needed) to preserve those approvals. We also handle franchise transfer paperwork if you operate under a franchised brand.

How do you value insurance receivables at close?

A/R is typically valued at face less an aging-based reserve. We agree on the reserve methodology in the LOI so there are no surprises at close. You keep collections on pre-close A/R or assign them at face — your choice.

Will you keep my technicians and project managers?

Yes. Certified technicians, project managers, and estimators are the business in restoration. We typically pay retention bonuses to key people at close and invest in keeping certifications current.

I run a franchised location — does that affect the deal?

It can — we evaluate franchised restoration businesses. The franchisor's transfer fee, royalty structure, and protected territory all factor into pricing. We've worked through franchise transfers before; it adds time but doesn't kill deals.

I'm not ready to sell yet — is it worth talking now?

Yes. Restoration businesses with weak certification depth or single-carrier concentration can usually fix those things in 12–24 months and meaningfully lift the eventual multiple. A conversation now helps you know what to focus on.

Other verticals we buy

Adjacent service businesses we acquire

Ready to talk about your restoration business?

Whether you're ready to sell now or 18 months out, the first conversation is the same: confidential, 30 minutes, no obligation.

Book a confidential call

leo@stocktonvc.com · LinkedIn

Selling your restoration business? We buy them.