Confidential — Acquisition Brief The Deal Sheet · Feb 2026
Business-Level Analysis — Deal #110

Southern Utah Full-Service Restoration Company with Dumpster Rental: Iron County, UT

Full acquisition analysis: financials, market context, valuation, risk assessment, and 100-day integration plan.

View Original Listing ↗
Conditional $1.2M ask is 2.03x reported SDE ($591,887), below the 2.8x–3.5x Utah comps. Attractive if a QoE confirms earnings and TPA programs re-credential after the ownership change.
$2,541,410
2024 Revenue
$591,887 reported; Est. $734,525 reconstructed
Est. SDE
Est. 2.0x–3.0x SDE
Est. Fair Multiple (mid 2.4x)
Est. $1.12M–$1.68M
Est. Fair Value (mid $1.40M)
01 — Business Overview

At a Glance

15-year independent mitigation, contents and rebuild firm serving Southern Utah. Work comes from TPA, insurance and repeat channels. Includes a dumpster unit. $2.54M revenue, $591,887 reported SDE.

7.0
Revenue Quality
Diversified commercial + residential mix with strong recurring base
7.0
Market Position
Las Vegas: extreme heat demand, population boom, construction surge
4.0
Information Quality
Limited public data — full financials behind NDA; requires verification

Key Strengths

  • Asking price of $1.2M ÷ $591,887 reported SDE = 2.03x, below the 2.8x–3.5x Utah median comps
  • Diversified lead flow from TPA programs, insurance referrals, repeat customers and local relationships
  • 15-year operating history with established project management team
  • Full-service scope (mitigation, contents, reconstruction) captures the whole claim dollar
  • Dumpster rental adds ancillary revenue and internal cost savings on demo debris
  • Strong debt coverage: DSCR of 3.38x on reported SDE ($591,887 ÷ $174,876)
  • Independent platform with no franchise royalties or territory restrictions

Key Questions

  • What is the seller's reason for sale, and will the owners stay on as licensed qualifiers during transition?
  • What % of revenue comes from each TPA program and carrier? Will programs re-approve the new owner?
  • How many employees are there, and which hold IICRC certifications and estimator roles?
  • How is reported SDE of $591,887 built? Please provide add-back schedule and 3 years of tax returns.
  • Does reported SDE include market rent for the seller-owned facility? What are the proposed lease terms?
  • What is the dumpster fleet count, age, and revenue split from the core restoration business?
  • What is the AR aging, especially insurance receivables older than 90 days?
  • What is the revenue trend for 2023–2026? Is the business growing, flat or declining?
02 — Financial Analysis

Reconstructed P&L

Estimated Income Statement
Line Item Amount % Revenue Benchmark
COGS (Materials) –$762,423 30.0% Industry avg: 30.0%
Direct Labor –$889,494 35.0% Industry avg: 35.0%
Gross Profit $889,493 35.0% Calculated
Vehicle / Fleet –$76,242 3.0% Industry range: 2-5%
Insurance (GL, WC, Auto) –$63,535 2.5% Industry range: 2-4%
Office / Admin / Software –$50,828 2.0% Industry range: 1-3%
Marketing –$25,414 1.0% Industry range: 0.5-3%
Rent / Facilities –$50,828 2.0% Industry range: 1-4%
Other Overhead –$38,121 1.5% Industry range: 1-3%
Depreciation –$10,166 0.4% Industry range: 0.3-0.5%
Est. Net Operating Income (pre-owner comp) $574,359 22.6% Calculated: $889,493 − $315,134 opex
EBITDA (Est.) $584,525 23.0% Benchmark: 15–20% healthy
Estimated SDE ~$734,525 28.9%

SBA Financing Model

Estimated SDE of ~$734,525 can support SBA 7(a) debt service on a $1,200,000 acquisition. Assuming 10% down ($120,000) and a 10-year term at ~10.5% SBA rates, annual debt service is approximately $174,876. Estimated pre-tax income to owner: ~$559,649+ after debt service.

03 — Working Capital & Seasonality

Cash Flow Reality Check

Est. $304,969
Est. Working Capital Needed
Est. $426,957
Peak Capital Requirement
Low
Seasonality Risk
Monthly Revenue Seasonality (1.0 = Average Month)
Jan
0.85x
Feb
0.85x
Mar
0.95x
Apr
1.05x
May
1.10x
Jun
1.15x
Jul
1.15x
Aug
1.10x
Sep
1.05x
Oct
0.95x
Nov
0.85x
Dec
0.85x

Cash Conversion Cycle

Days Receivable
45 days
Days Payable
25 days
Net Cash Cycle
20 days
Assessment
Normal range (insurance-paid restoration commonly 45–75 DSO)

Working Capital Recommendations

  • Finance Working Capital in SBA Loan: Add about $305K to the 7(a) package. Total project of $1,504,969 at 10% down requires about $150,497 of equity.
  • Establish Revolving Line: Secure a $125K–$150K LOC to cover the gap between the $305K base and the $427K peak during Jun–Jul.
  • Tighten Insurance Collections: Submit Xactimate estimates and supplements within 48 hours and collect deductibles at mitigation start to hold DSO at or below 45 days.
  • Set Working Capital Peg: Peg normalized AR minus AP at close. Exclude stale AR and require the seller to deliver unbilled WIP.
04 — Revenue Quality

How Sticky Is the Revenue?

Revenue Breakdown by Type
Est. TPA & carrier program referrals (Repeat) 35%
Est. agent/adjuster referrals & direct retail (One-Time) 30%
Est. repeat commercial & property manager accounts (Repeat) 27%
Est. dumpster rental contractor accounts (Recurring) 8%

Customer Concentration (Est.)

Top 1 Customer
~8%
Top 5 Customers
~20%
Top 10 Customers
~30%
Concentration Risk: Low — End-customer concentration is low. If any single TPA program routes over 20% of jobs, source concentration becomes material. Verify in diligence.

Revenue Retention Estimate: Est. 80–90% of revenue retained in Year 1 if TPA credentials, PMs and seller introductions transfer cleanly.

Estimated percentage of revenue retained after an ownership transition, based on industry benchmarks and business characteristics.

Churn Risk Factors

TPA programs suspend or re-scorecard the new owner (Medium likelihood)
Mitigation: Obtain pre-close confirmations, keep the seller as a consultant, and maintain KPI performance.
Key PM or estimator departs post-close (Medium likelihood)
Mitigation: Use 12–24 month retention bonuses and equity-style incentives for key staff.
Agent and adjuster relationships tied to sellers (Medium likelihood)
Mitigation: Hold joint introductions over a 6–12 month transition and use an earn-out style seller note.
Franchise competitor gains share (SERVPRO, 911 Restoration) (Low likelihood)
Mitigation: Compete on local response time and full-service rebuild, and add carrier programs.
03 — Valuation Assessment

What's This Business Worth?

Valuation Triangulation
Method Low Mid High
Reported SDE Multiple ($591,887 × 2.0x / 2.5x / 3.0x) $1,183,774 $1,479,718 $1,775,661
Est. EBITDA Multiple ($584,525 × 2.0x / 2.5x / 3.0x) $1,169,050 $1,461,313 $1,753,575
Revenue Multiple ($2,541,410 × 0.40x / 0.50x / 0.60x) $1,016,564 $1,270,705 $1,524,846
Blended Fair Value
Est. $1,123,129 – $1,684,694 (simple average of 3 methods); midpoint $1,403,912 = 2.37x reported SDE

Premium Factors

15-year operating history and established PM team
8%
Diversified TPA, insurance, repeat and local lead sources
7%
Growing Iron County market (GDP +21.8% 2020–2023)
8%
Full-service scope plus dumpster ancillary revenue
6%

Discount Factors

Thin disclosure: no employee count, EBITDA, equipment list or sale reason
7%
TPA program re-credentialing risk on ownership change
7%
Insurance-dictated pricing limits margin expansion
5%
Small, geographically isolated market caps scale
5%
Seller-owned facility; lease terms undefined
5%
04 — Market Context

Market & Comparable Transactions

Iron County GDP rose 21.8% (2020–23). Population grows 2.15%/yr. Median home is $379K (+10.5% YoY), and job growth is forecast at 51.5% over 10 years vs. 33.5% for the US. A growing housing stock means more claims.

ComparableRevenueMultipleLocation
Mid-size restoration business with insurance contracts$2M - $5M3.5x - 4.5x SDEUtah / Western U.S.
Utah restoration companies, median restoration business$750K - $2M2.8x - 3.5x SDEUtah (statewide)
Adjusted-earnings multiples for restoration businesses (Restoration Brokers of America Q2 2025)$100K-$3M+2x-3x for $100K-$500K earnings; 6x-7.5x above $3MNational

Bull Case

TPAs and staff transfer intact. Buyer adds a St. George/Washington County branch and cross-sells dumpsters. Revenue reaches Est. $3.2M and SDE about $800K, worth $2.0M+ at 2.5x within 3 years.

Bear Case

Two TPA programs drop the new owner and the lead PM leaves. Revenue falls 25% to Est. $1.9M. Market rent cuts SDE to about $400K. DSCR still covers at 2.3x but leaves little owner income.

06 — Competitive Landscape

Who You're Up Against

12–18 local competitors; 5–6 direct Iron County players plus 10–14 regional/national firms
Est. Local Competitors
Fragmented
Market Structure
Est. 15–25%; geographic isolation limits franchise density
Franchise Penetration
Key Local Competitors
Company Type Est. Revenue Threat Level
SERVPRO of Cedar City/Fillmore Franchise Est. $2M–$4M High: national brand, strong insurance ties, 24/7 capacity in Cedar City
911 Restoration of Southern Utah Franchise Est. $1M–$3M High: St. George-based; may prioritize Washington County over Iron County
ServiceMaster Restore of Color Country Franchise Est. $1M–$3M High: national brand with full service suite and insurance partnerships
Regional St. George independents (various) Independent Est. $0.5M–$2M each Medium: compete for agent referrals, less Iron County coverage
National PE-backed platforms (CAT/large loss) PE-Backed Est. $100M+ nationally Low: enter mainly on large-loss and catastrophe events

Competitive Advantages

15-year local reputation and relationships
Strong
Established TPA program credentials
Moderate
Full-service mitigation-to-rebuild scope
Moderate
Owned dumpster fleet lowers demo costs
Moderate
No franchise royalty (Est. 6–10% margin edge)
Strong

Moat Assessment

Moderate moat. Local relationships, program credentials and isolation deter entry, but insurer-set pricing and portable TPA referrals limit durability. People retention is key.

05 — Risk Assessment

Risk Scores & Due Diligence

8.0
Market Risk
Low — HVAC is essential in Las Vegas
5.5
Operational Risk
Medium — Labor + owner dependency unknown
8.0
Financial Risk
Low — Estimated financials only

Due Diligence Priorities

  • 1. Quality of Earnings: Reconcile $591,887 reported SDE with Est. $734,525. Obtain 3 years of tax returns, P&Ls and bank statements, and verify each add-back.
  • 2. TPA & Carrier Program Review: Get revenue by TPA and carrier, plus scorecards and assignment terms. Confirm each program will re-credential the new owner before close.
  • 3. WIP & Revenue Recognition: Review open reconstruction jobs, percentage-of-completion accounting, supplements and change orders to avoid buying unbilled or underbid work.
  • 4. AR Aging & Collections: Age insurance and homeowner receivables, check deductible collection rate, and exclude AR older than 120 days from the working capital peg.
  • 5. Workforce & Certifications: Build an employee roster with tenure, pay and IICRC/EPA certs. Identify key PMs and estimators and secure retention agreements.
  • 6. Facility Lease & Fleet: Negotiate market-rate lease terms with the seller. Appraise vehicles, drying equipment and dumpster fleet, and confirm titles and liens.
08 — Transfer Checklist

What Needs to Transfer

Est. $40,000–$95,000 one-time
Total Estimated Transfer Cost
Est. $40,000–$95,000 one-time (excluding ongoing insurance premiums)
60–120 days
Estimated Time to Complete
Deal Transfer Checklist
✗
License Utah DOPL contractor license Critical
Cost: $500–$1,500 Time: 4–8 weeks Tied to qualifier. Use a stock purchase or a new qualifier; seller may need to stay as qualifier temporarily.
✓
License IICRC firm and technician certifications Critical
Cost: $1,000–$5,000 Time: 2–6 weeks Firm cert depends on certified staff remaining. TPAs require it.
✗
License EPA RRP lead-safe firm certification Critical
Cost: $300–$600 Time: 2–4 weeks New firm certification required for pre-1978 homes.
✗
License Iron County / Cedar City business licenses
Cost: $100–$500 Time: 1–2 weeks Reissue under buyer entity.
✗
Insurance GL, workers' comp, commercial auto policies Critical
Cost: Est. $63,535/yr premium Time: 2–4 weeks Must be bound at close. TPAs require specific limits.
✗
Insurance Contractor's pollution / mold liability Critical
Cost: $5,000–$15,000/yr Time: 2–4 weeks Often required by TPA and carrier programs.
✗
Insurance Contractor surety bond Critical
Cost: $500–$2,500 premium Time: 1–2 weeks Bond of $15K–$50K is required for licensing.
✗
Contract TPA program agreements Critical
Cost: $0–$5,000 in fees Time: 30–90 days Require re-application or consent. This is the top deal risk.
✗
Contract Facility lease with seller Critical
Cost: Legal fees $2,000–$5,000 Time: 2–4 weeks Need a new 5-year market-rate lease with options.
✓
Contract Commercial MSAs and vendor accounts
Cost: $0–$2,000 Time: 2–6 weeks Assignment consent may be needed. Includes supplier credit lines.
✗
Regulatory Dumpster landfill and hauling permits
Cost: $500–$2,000 Time: 2–6 weeks Confirm county landfill accounts and any hauler permits.
✓
Regulatory DOT / vehicle registrations, roll-off truck CDL
Cost: $1,000–$3,000 Time: 2–4 weeks Title transfers and USDOT number update. Verify CDL-holding drivers.
✗
Regulatory Utah DAQ asbestos certification (if performed)
Cost: $500–$2,000 Time: 4–8 weeks Needed only if the company self-performs asbestos work.
✓
Operational Xactimate, job management and accounting software Critical
Cost: $1,000–$3,000 Time: 1–2 weeks Xactimate licenses are needed for carrier estimating.
✓
Operational Phone numbers, website, Google Business profile Critical
Cost: $0–$500 Time: 1 week 24/7 emergency line continuity is essential for lead flow.
✓
Operational Key employee retention agreements Critical
Cost: Est. $25,000–$50,000 Time: At close Retention bonuses for PMs, estimators and lead technicians.

Potential Deal Breakers

  • Major TPA programs decline to approve the new owner
  • Tax returns fail to support about $591,887 reported SDE
  • Key PM or estimator team refuses retention
  • Seller will not offer a market-rate facility lease or a qualifier transition
06 — Post-Acquisition Plan

100-Day Integration Playbook

Phase 1 (Days 0–90)
Stabilize & Retain
Protect lead sources and people during the ownership change.
  • Execute seller transition plan with joint TPA and adjuster introductions
  • Sign retention bonuses for PMs and estimators
  • Secure DOPL license, insurance and bonds in buyer's name
  • Maintain all pricing, processes and vendor terms
Phase 2 (Months 3–9)
Optimize Operations
Install financial controls and improve cash conversion.
  • Implement job costing and WIP reporting by job
  • Cut DSO from 45 to under 40 days via faster supplements
  • Audit dumpster utilization and pricing
  • Review TPA scorecard KPIs monthly
Phase 3 (Months 9–36)
Grow the Platform
Use the independent platform to expand regionally.
  • Open satellite coverage in Washington County (St. George)
  • Pursue commercial and property management MSAs
  • Add new TPA and carrier programs
  • Market dumpsters to local contractors and builders

Value Creation Waterfall (3-Year Outlook)

Acquisition Price
$2.2M
+ Organic Revenue Growth (15%/yr)
+$2.1M Rev
+ Margin Expansion (to 20% EBITDA)
+$250K EBITDA
+ Multiple Expansion (3.5x → 5.5x)
+$2.0M uplift
Est. Enterprise Value (Year 3)
$5.5M – $7.0M
07 — Final Recommendation

Our Verdict

Verdict: Conditional — Proceed to LOI

Pursue at or below ask, conditional on QoE and TPA confirmation. At $1.2M, DSCR is 3.38x on reported SDE and cash after debt is $417,011 ($591,887 − $174,876).

Recommended Next Steps

  1. Sign NDA and request CIM, 3 years of tax returns, P&Ls and an add-back schedule
  2. Request revenue breakdown by TPA, carrier, referral and dumpster
  3. Hold a seller call on reason for sale, staffing, qualifier license and transition length
  4. Submit an LOI at $1.10M subject to QoE, TPA consents and lease
  5. Engage a QoE provider and an SBA lender; budget about $300K working capital in the loan
  6. Draft a market-rate lease (5 years plus options) with the seller

Suggested Offer Structure

$1,100,000 (1.86x reported SDE): 10% equity ($110K), 5% seller note ($55K, 24-month standby), SBA loan of $935K (Est. $151,397/yr debt service). Walk-away price is $1.2M.

View Original Listing on BizBuySell ↗

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Sources

BizBuySell Listing #2488370 (https://www.bizbuysell.com/business-opportunity/established-restoration-business-in-rapid-growth-mark/2488370/) · Restoration Brokers of America, Q2 2025 restoration multiples · Iron County, UT economic and demographic data (GDP, income, labor force) · Utah Division of Professional Licensing (DOPL) contractor requirements · Utah restoration wage data, May 2026 · Industry benchmark cost percentages for restoration contractors