Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Conference & Exhibition
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
Managing Your Restoration Business

5 Reasons Why Now Is the Best Time to Sell Your Restoration Business

By Jacob Koenig
selling your restoration business

Photo:  Robert Daly/OJO Images via Getty Images

March 17, 2023

Tornadoes, hurricanes, floods and wildfires — these are just a few of the recent crises that have left destruction in their wake. Due to the immense amount of media coverage, many homeowners have come to realize that they need to be better prepared for future disasters. Thus, many have taken proactive steps by purchasing insurance or building savings accounts in case of a catastrophic event.

Many industries are seeing a decrease in demand, but restoration and remediation businesses remain popular because of increased capital spending on property repairs by the insurance industry. 

As M&A advisors, we have witnessed firsthand the recent spiking interest in restoration and remediation (R&R) space acquisitions. Many companies in this burgeoning sector are ripe to be sold — there's no doubt about it. Whether you're thinking about a sale or perhaps in the exploratory phase of a search for a potential buyer, below are five reasons why now could be the best time to sell your restoration business.


“Dry Powder” at Record Levels

As an asset class, equity in privately owned businesses continues to see new record levels of demand. The pool of capital ready to be deployed steadily grows even as rates increase. The abundance of this “dry powder” in the industry means that there is pressure on investors to identify growth opportunities and make investments quickly.


Strong Demand for “Defensive” Industries

When we last brought a restoration company to market, we received more than 45 bids from a diverse group of buyers. The ultimate buyer paid a multiple of earnings before interest, taxes, depreciation and amortization that was among the highest we saw all year. The icing on the cake? The deal closed in record time and was the second-fastest sale in our 30-year history.

In an uncertain macroeconomic environment, all kinds of investors want to put their resources into recession-proof industries. Demand for restoration and remediation is not tied to the broader economy. These companies are immune to the gyrations of the stock market, making them particularly appealing to those with cash to invest and a desire for diversification.


Ample Lending Capacity

While rising interest rates have put financing pressure on Wall Street’s large-scale M&A activity, we have not yet seen this impact Main Street. With high levels of capital and strategic reasons for continued expansion, buyers — especially strategic buyers — are willing to cut leverage to get a deal done now. Private equity firms can always add debt later when rates come off or find other creative solutions to bridge the gap, such as seller’s notes. We have found that with the stable nature of businesses in the R&R space, banks are eager to fund deals even when debt is a necessary part of the capital stack.


High Margins and Strong Networks

R&R investors want to partner with companies with a strong track record and an appealing growth story. Many firms in the remediation space have high margins, which is an attractive feature when investors of all stripes are screening for potential opportunities. Those who can demonstrate their network's strength to continue building a broader customer base are at an even further advantage over their competition.

There is one area where business owners can stand out from the crowd: the quality and timeliness of their financial statements.

Buyers and investors make decisions based on accrual-based financial statements — in-depth monthly statements must be available. Lacking information causes delays, and time kills. The restoration and remediation industry has few players with significant market share across the country. Many investors see this as an opportunity to scale up their best practices and back-office functionality as they partner with a growing number of businesses nationwide.


Fragmentation Within the Space

As an increasing number of private equity firms back “platform” businesses in the space, R&R companies have the green light to expand organically and through acquisition. Firms often compete in different arenas, even within the industry. Groups are looking to expand with third- party administrator program players and groups growing by the acquisition of non-TPA-focused firms.

This diversity within the market makes it even more seller-friendly, essentially doubling the amount of potential demand for your business. In turn, this environment creates even more upside for an advisor who can cast a wide net and facilitate a competitive auction to maximize your company's value.


The Strategy for a Successful Sale

As the world grows, natural disasters continue to be a threat. While we can't control Mother Nature, we can control our response. Industries that help support others after a tragic event are a vital component of our society, and more investors than ever are using their resources to support noble causes that help the community.

Regardless of whether the market is up or down, companies with exceptional business models are always worth a look from those seeking to grow their money. 

If you are entertaining selling your restoration business, you should consider capitalizing on that sooner rather than later. I’ve given you five of the best tricks of the trade I’ve learned in my years of working in the M&A industry. Whichever route you're thinking about pursuing, if you're open to exploring the possibility of selling your business in the near or long-term future, we encourage you to consider the reasons we've outlined above to make your sale a significant success.

See more articles from our March issue!

KEYWORDS: business ownership business planning selling your business

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Koenig

Jacob Koenig is a managing director/partner at Woodbridge International, a leading mergers & acquisitions (M & A) firm that specializes in the lower middle market. He is responsible for managing the sale process from bid through closing and serves as a trusted advisor for Woodbridge’s clients. Prior to joining Woodbridge, Koenig spent 12 years at Goldman Sachs in Asia, most recently as executive director, heading execution services in Taiwan. His team covered more than 500 institutional clients globally. He moved to Taiwan from Goldman Sachs in Tokyo, where he spent 9 years in execution in the Japanese market. Koenig holds a master’s degree in Asian studies and international finance from Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies, as well as a bachelor’s in Asian studies and economics from John Hopkins University. He is fluent in Japanese and speaks basic Mandarin.

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Cleaning and Sanitation
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

wall cavity drying

Dry or Demolish? Navigating the Complexities of Wall Cavity Restoration

Ask the Expert: Unlocking Efficiency in Water Damage Restoration

Unlocking Efficiency in Water Damage Restoration

Ask the Expert: Catastrophe Panel - Back to the Basics Part 1

Catastrophe Panel – Back to the Basics Part 1

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Restoration Services

What restoration/remediation service do you prioritize most?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products

Related Articles

  • kraai time to sell

    5 Signs It’s Time to Sell Your Restoration Business

    See More
  • RR0714_Cunningham_img1_f.jpg

    Is Now the Right Time to Grow Your Business?

    See More
  • Why Time Is Not Your Friend When Selling a Restoration Business

    Why Time Is Not Your Friend When Selling a Restoration Business

    See More

Related Products

See More Products
  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

  • Cover.jpg

    How To Get More Water Damage Jobs (ebook)

See More Products
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing