Home & Field Services · Seller readiness
Selling a Restoration & Water Mitigation business
Published · Reviewed by The Diligence Standard Team · Updated
A seller should reconcile billed revenue to collections, normalize unusual catastrophe periods and document referral sources, equipment and technician credentials.
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.
Issues to resolve
- Revenue is presented without cash-collection quality
- Event-driven years are not normalized
- Referral relationships are owner-held
- Equipment records are incomplete
- Open jobs and claims are difficult to reconcile
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?