Exceptional Restoration & Disaster Recovery, California Contractor

$2.6M

Revenue

$691K

SDE

5.4x

Multiple

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Full Editorial Writeup

Step into ownership of a well-established restoration and disaster recovery business with a stellar online reputation, strong social media presence, and loyal client base. With a proven history of excellence, this business provides essential cleanup and restoration services for residential, commercial, and institutional clients affected by fire, water, mold, storms, and other disasters.Business Highlights:Diverse Service Lines: Fire and smoke damage restoration, mold remediation, personal content cleaning, storm damage restoration, and water damage restoration.Experienced Team: 9 skilled and dedicated employees—including a Project Manager and Estimator/QA Specialist committed to staying on with new ownership.Smooth Transition: Current owner willing to provide 3–6 months of hands-on training to ensure continuity and operational success.Seller Financing: The Seller is willing to finance a significant portion for the right buyer and deal.Valuable Assets Included:Fleet of 4 vehicles ($200K value)Specialized restoration equipment ($150K value)Office equipment ($50K value)Ideal Buyer: A values-driven entrepreneur who cares about clients and employees, and is ready to leverage the enormous growth potential in one of the most desirable and high-net-worth markets in the country.Growth Opportunity: With demand for disaster recovery services continuing to rise, this business is perfectly positioned for significant expansion. A well-resourced buyer can scale rapidly, tapping into both residential and commercial sectors for exponential growth.This is a rare opportunity to acquire a top-tier restoration business with a proven team. Perfect for an operator ready to lead with integrity and vision.

Why we like it

Earnings quality is solid for the category, with $691K of cash flow on $2.59M of revenue producing a healthy 27% margin. Restoration revenue is largely insurance-funded, which means the customer's willingness to pay is decoupled from their personal budget, a rare quality in home services.
The moat here is response time, insurance relationships, and certifications, not brand. An intact team with a dedicated Project Manager and an Estimator/QA Specialist staying on preserves the operational muscle and the payer relationships that make this business bankable rather than owner-dependent.
Demand for restoration is structurally rising in California given increasing wildfire, storm, and water-event frequency, and the listing sits in a high-net-worth market where claim values run higher. This is a category where volume grows with climate volatility and property values, not with consumer confidence.
The seller offers 3 to 6 months of hands-on training and is willing to finance a significant portion of the deal. Meaningful seller financing aligns incentives and signals the seller's confidence that the cash flow is real and sustainable through transition.

How to improve it

Lock down and expand the insurance carrier and TPA relationships in the first 90 days. Getting on preferred vendor and managed-repair programs (Alacrity, Contractor Connection, carrier direct-repair networks) creates a steady inbound claim pipeline that reduces reliance on marketing spend.
Build a commercial and institutional sales motion beyond the current residential base. Property managers, HOAs, schools, and healthcare facilities generate larger and more repeatable jobs, and a single dedicated business developer can materially shift the revenue mix upward.
Implement job-costing and project management software if not already in place. Tighter tracking of labor, equipment utilization, and per-job margin will surface which service lines and job types actually drive the 27% margin and where scope creep is eroding it.
Add or deepen 24/7 emergency dispatch and guaranteed response-time commitments. In restoration the first responder usually wins the whole job, so investing in on-call crews and fast mitigation directly converts more inbound calls into full restoration contracts.
Formalize recurring commercial maintenance and preventive offerings such as mold inspections, moisture monitoring, and post-remediation testing. These smooth out the lumpy, event-driven revenue and create predictable baseline cash flow between catastrophe surges.
Recruit and certify additional field technicians (IICRC and related credentials) ahead of demand to remove the capacity ceiling. The listing frames scale as the opportunity, and in this trade the binding constraint is usually trained crews, not lead flow.

Diligence notes

Verify the $691K cash flow with tax returns and bank statements, and understand how heavily it depends on one or two large catastrophe events. Restoration revenue can be lumpy, so confirm whether the trailing year reflects a normal baseline or a spike from a specific fire or storm season.
Confirm the concentration of revenue by payer and by client. Understand what share comes from insurance versus cash-pay, and whether any single carrier, TPA, adjuster relationship, or property manager drives an outsized portion of jobs.
Validate all IICRC and state restoration certifications, licensing, and whether they attach to the owner personally or to staff who are staying on. Certification and licensing gaps can halt the ability to bid work immediately after close, so confirm who holds what.
Nail down the seller financing terms early: the amount, rate, term, and any performance conditions. Also confirm the retention commitments of the Project Manager and Estimator/QA Specialist in writing, since the business's transferability hinges on them staying.
Inspect the condition and true value of the $400K in included assets, especially the specialized drying, dehumidification, and remediation equipment. Confirm whether the fleet and equipment are owned free and clear or carry any liens or lease obligations.

Source

Originally listed on BusinessBroker.net. View original listing →