Home & Field Services · Buyer guide
Buying a Restoration & Water Mitigation business
Published · Reviewed by The Diligence Standard Team · Updated
Restoration revenue may look strong while AR aging, insurance collections, referral dependence or event-driven spikes weaken cash conversion and predictability.
How the business works
Insurance-driven emergency work can produce strong revenue but collections, referral sources, equipment utilization and carrier relationships make quality of earnings complex.
Risks to test
- Large AR balances or disputed insurance claims
- Catastrophe-driven revenue spikes
- Referral concentration
- Equipment replacement or missing asset control
- Technician certification dependence
- TPA / carrier program concentration
Evidence to request and reconcile
- Job-level billing and collections
- AR aging by payer
- Referral-source history
- Equipment inventory and maintenance
- Technician certifications
- Open-job and claims schedule
Decision questions
- How much reported revenue is still uncollected?
- What percentage of work came from one storm or event?
- Which referral sources are transferable?
- What equipment is owned, leased or missing from records?
- How much working capital does the buyer need to fund open jobs?