Fire and Water Restoration Business for Sale: How Buyers Read the Fire Side

A fire and water restoration business for sale is judged on both halves of the work. Buyers read water mitigation for volume and speed, and fire work for job size, contents handling, documentation and certifications. Companies that report fire and water jobs separately, collect on a predictable schedule and hold current IICRC credentials draw the most interest.

Our earlier post, Water Damage Restoration Business for Sale: What Makes a Mitigation Company Attractive, covers the water side. This post covers the fire side: smoke, soot, odor, contents and pack-out, and how buyers read each one.

What counts as fire-side work in a restoration company?

Fire-side work is everything after a fire that is not the rebuild itself. It usually includes emergency board-up and tarping, soot and smoke residue cleaning, odor control, contents cleaning, and pack-out, meaning inventorying, removing and storing a customer's belongings while the structure is restored.

It also includes the water left by firefighting, which is why many fire jobs start with extraction and drying. That overlap is one reason buyers want the two lines reported separately: drying on a fire job should not inflate your water mitigation numbers.

Why do buyers look at fire and water jobs separately?

The two behave differently. Water mitigation jobs tend to be shorter, equipment-driven and repeatable. Fire jobs are fewer, often larger, run longer and involve more labor, contents handling and documentation.

That difference shows up in the numbers. Fire jobs can tie up cash for longer and leave more room for disputes over scope. Report revenue, gross margin and days to collect for fire, water and reconstruction on separate lines, so a buyer can see what each one contributes.

How do buyers read contents and pack-out?

Contents work is where fire restoration differs most from water. When you pack out a home, you take custody of someone else's belongings, sometimes for months.

Buyers will ask how you inventory items (photos, barcodes or software), how you track them in storage, how you handle claims for lost or damaged items, and which cleaning methods and equipment you use. They will also ask how customer property in your care is insured, so review those policy details with your insurance broker before you go to market.

If you store contents in a building you own or lease, a buyer will ask about it. The real estate or lease is handled separately with your own real estate and legal advisors; for the business sale, focus on the systems, people and records.

Which certifications do buyers expect on the fire side?

The IICRC (Institute of Inspection Cleaning and Restoration Certification) publishes ANSI/IICRC S700, the Standard for Professional Fire and Smoke Damage Restoration. According to the IICRC, S700 describes the principles, processes and procedures for assessing the presence, intensity of impact and boundaries of fire residues and odors affecting a building, building systems and contents after a fire.

For technicians, the IICRC offers the Fire and Smoke Damage Restoration Technician (FSRT) certification, which covers scoping, mitigation, cleaning, deodorization, subrogation, spoliation and documentation of fire and smoke damaged structures and contents. It also offers the Odor Control Technician (OCT) certification. Buyers want a roster showing who holds each certification, with renewal dates, and job files that follow a recognized standard.

How do carriers and program work affect the fire side?

Much fire work arrives through insurance carriers, adjusters and TPA (third-party administrator) programs, just as water work does. Buyers ask for revenue by source and read every program agreement for assignment, change of control and termination terms, because some participation does not survive a change of ownership.

Buyers also value fire work that does not depend on one carrier: property managers, commercial accounts, insurance agents and repeat customers who call the company directly. Show those relationships and who at your company holds them. If the answer is only you, start sharing them with a project manager now.

Why are receivables on fire jobs a diligence item?

Large fire jobs often involve supplements, contents disputes and longer claim cycles. AR (accounts receivable) aging groups unpaid invoices by how long they have been outstanding, and fire jobs tend to sit in the older columns.

Buyers will ask for an AR aging report split by job type, write-off history and average days to collect. Many deals set a working capital target at closing, and old or disputed invoices count for little in it. Work down the oldest fire-job balances before you go to market.

What happens to the owner's role on the fire side?

Large fire losses often lean on the owner: estimating, walking the loss with the adjuster and the customer, and keeping a long job on schedule. Buyers ask who writes fire estimates, who meets adjusters on large losses and who manages contents when the owner is away.

If those answers all point to you, build depth before you sell. A project manager or estimator who has run large fire jobs from first call to final invoice is one of the clearest signals that the fire side will keep working after closing.

What should be in your fire-side diligence file?

• Revenue, gross margin and days to collect for fire, water and reconstruction on separate lines
• Revenue by carrier, TPA program and referral source
• Program agreements with transfer terms highlighted
• Contents inventory, storage and claims procedures, with sample job files
• Technician roster with IICRC certifications, such as FSRT and OCT, and renewal dates
• AR aging by job type and write-off history
• Equipment list for cleaning, deodorization and contents work
• Insurance policies and loss runs, including coverage for customer property in your care

What does this mean for value?

Restoration companies are usually valued on SDE (seller's discretionary earnings), which is pretax profit with the owner's salary, perks and one-time costs added back. The ServiceExits rule-of-thumb range for restoration is 3.0-5.0x SDE, with carrier relationships and a strong mitigation mix pushing toward the top. A well-run fire side supports that position when its margins, collections and documentation hold up. It is a starting point for an advisor to review against your actual numbers, never a promise. Our post What Is Your Restoration Company Worth? Multiples by Revenue Band goes deeper on the math.

Next step

If you are preparing a fire and water restoration business for sale, start by splitting fire, water and reconstruction in your books and writing down your contents process. When you want a confidential read on your options, request a Private Exit Review through the form on our home page.

Frequently asked questions

What do buyers look for in a fire and water restoration company?

They look for fire, water and reconstruction reported separately, work spread across several carriers and referral sources, receivables collected on a predictable schedule, documented contents handling and current IICRC certifications. Heavy dependence on one program, old fire-job receivables and owner-held relationships are the most common reasons for a lower price.

Which IICRC certifications matter for fire restoration?

The IICRC publishes ANSI/IICRC S700, the Standard for Professional Fire and Smoke Damage Restoration. Its technician certifications include Fire and Smoke Damage Restoration Technician (FSRT) and Odor Control Technician (OCT). Buyers want a roster showing who holds each certification and when it renews, plus job files that follow a recognized standard.

Does pack-out and contents work add value to a restoration company?

It can, when it is well run. Contents work adds revenue per job, but it also means custody of customer property. Buyers value clear inventory and tracking systems, documented cleaning methods, a low claims history and proper insurance for property in your care. Weak records turn the same service into a risk.

How much is a fire and water restoration business worth?

It depends on SDE, the job mix, carrier concentration, receivables and documentation. The ServiceExits rule-of-thumb range for restoration is 3.0-5.0x SDE. Treat that as a starting point for an advisor to review against your financials, not a promise. Diversified referral sources and a strong mitigation mix support the upper end.