Selling a Disaster Restoration Business (2026): 5x-11x EBITDA & Named Buyers
Quick Answer
A US disaster restoration business in 2026 typically sells for 5x-11x EBITDA, varying by mitigation mix (water vs fire vs mold vs biohazard), insurance third-party administrator (TPA) program penetration, franchise-network status (Servpro, ServiceMaster Restore, BELFOR, Rainbow Restoration) versus independent operation, and reconstruction-revenue share. A $400K SDE owner-operator typically clears $1M-$2.4M; a $2M EBITDA platform-ready operator commonly clears $10M-$22M. The active buyer pool: BELFOR Holdings (American Industrial Partners), Restoration1 (TZP Group), and 12+ PE-backed restoration platforms. Critical drivers: TPA program penetration (Crawford, Sedgwick, Code Blue), water-mitigation share, and franchise vs independent status.
A US disaster restoration business in 2026 typically sells for roughly 5x to 11x EBITDA, varying by mitigation-vs-reconstruction mix, TPA (third-party administrator) network status with named insurance carriers, multi-state platform scale, and operating infrastructure. Restoration is one of the most active PE consolidation themes because of insurance-backed payer durability, 24/7 emergency response moat, and high-margin mitigation economics. By profile: a single-territory franchise (Servpro, PuroClean, ServiceMaster Restore, BELFOR, Rainbow Restoration, etc.) at $300-700k SDE goes 3x-5x SDE; a profitable single-territory operator with diversified mitigation + reconstruction at $500k-1.5M SDE goes 4x-6x SDE; a small multi-territory regional ($1.5-4M EBITDA) goes 5x-7x EBITDA; a regional restoration platform with strong TPA program revenue ($4-12M EBITDA) goes 6x-8x; a premium scale platform ($12M+ EBITDA, multi-state, named carrier program participation, modern operating system) reaches 7x-11x+. Active buyers include BluSky Restoration Contractors (Partners Group + Kohlberg & Company, multi-state platform), BELFOR Property Restoration (American Securities Capital Partners + Goldman Sachs Asset Management, the largest US disaster restoration company with $2B+ revenue), Servpro Industries (Blackstone, the largest US restoration franchise with ~2,200+ franchise locations and $4B+ system-wide revenue), ATI Restoration (PE-backed, multi-state with ~$700M+ revenue), First Onsite Property Restoration (FirstService Corporation NYSE: FSV, post 2020 acquisition), Restoration Pros, PuroClean (PE-backed franchise, ~370+ locations), Rainbow Restoration (Neighborly Holdings PE-backed franchise platform), ServiceMaster Restore (now Neighborly Holdings post 2020 Roark Capital acquisition), Cotton Holdings, plus PE sponsors (Partners Group + Kohlberg & Company, American Securities + Goldman Sachs Asset Management, Blackstone, FirstService Corporation, Roark Capital, Aurora Capital Partners, MidOcean Partners). The biggest multiple drivers are mitigation-to-reconstruction revenue mix (mitigation is 60-75% gross margin vs. reconstruction at ~10-15%), TPA (third-party administrator) program participation (Crawford, Sedgwick, ECCM, plus direct named-carrier programs with State Farm, Allstate, Liberty Mutual, etc.), 24/7 emergency response infrastructure, modern operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated), and IICRC certifications (Water, Fire, Mold, Bio). Buyer-paid M&A advisory (CT Strategic Partners) costs the seller nothing.
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If you own a US disaster restoration business in 2026, the M&A market is one of the most active PE consolidations. BELFOR Property Restoration (American Securities + Goldman Sachs Asset Management, $2B+ revenue) is the largest dedicated operator. Servpro Industries (Blackstone, ~2,200+ franchise locations, $4B+ system-wide) is the largest franchise platform. BluSky (Partners Group + Kohlberg & Company), ATI Restoration, First Onsite (FirstService Corporation NYSE: FSV), PuroClean, Rainbow Restoration, and ServiceMaster Restore (Neighborly Holdings) compete. PE sponsors continue aggressive regional consolidation. The full list of construction franchises covers the active buyers, fee structures, and unit-economics for each.
What the asset is worth depends on three things: (1) mitigation-to-reconstruction revenue mix (mitigation is 60-75% gross margin vs. reconstruction at ~10-15%), (2) TPA program participation and named carrier relationships (Crawford, Sedgwick, ECCM, direct State Farm/Allstate/Liberty Mutual programs), and (3) 24/7 emergency response infrastructure plus modern operating system. This guide covers real multiples by profile, the named buyers transacting, and the operator-level diligence buyers will run.
What this guide covers
- Disaster restoration multiples 2026: 3x-5x SDE for single-territory franchise, 4x-6x SDE for diversified single-territory, 5x-7x EBITDA for small multi-territory, 6x-8x for regional platforms with TPA programs, 7x-11x+ for premium scale platforms.
- Active buyers: BELFOR Property Restoration (American Securities + Goldman Sachs Asset Management, $2B+ revenue, largest dedicated US operator), Servpro Industries (Blackstone, ~2,200+ franchise locations, $4B+ system-wide, largest franchise platform), BluSky Restoration Contractors (Partners Group + Kohlberg & Company), ATI Restoration (PE, ~$700M+ revenue), First Onsite Property Restoration (FirstService Corporation NYSE: FSV), PuroClean (PE, ~370+ franchise locations), Rainbow Restoration (Neighborly Holdings), ServiceMaster Restore (Neighborly Holdings), Cotton Holdings.
- PE sponsor activity: Partners Group + Kohlberg & Company (BluSky), American Securities Capital Partners + Goldman Sachs Asset Management (BELFOR), Blackstone (Servpro), FirstService Corporation (First Onsite), Roark Capital (Neighborly Holdings parent of ServiceMaster Restore + Rainbow Restoration), Aurora Capital Partners, MidOcean Partners.
- Multiple drivers: mitigation-to-reconstruction revenue mix (mitigation = 60-75% GM premium; reconstruction = ~10-15% GM), TPA program participation (Crawford, Sedgwick, ECCM, named-carrier direct programs), 24/7 emergency response infrastructure, modern operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated), IICRC certifications.
- Things that compress: reconstruction-heavy revenue mix (low GM), no TPA program participation, weak 24/7 response infrastructure, legacy paper-based workflow, owner-operator dependence, single-territory operations, weak IICRC certifications.
- Sellers pay nothing on CT Strategic Partners’ buyer-paid advisory.
Disaster Restoration Sale Multiples (2026)
| Tier / Segment | Range (2026) |
|---|---|
| Sole-operator restoration ($300K-$1M revenue) | 3.0x-4.5x SDE |
| Mid-size independent ($2M-$10M revenue) | 5.0x-7.5x EBITDA |
| TPA-program-rich platform ($10M+ revenue) | 7.5x-11.0x EBITDA |
| Water-mitigation share premium (>50%) | +0.5x-1.0x EBITDA |
| Active PE buyer pool | BELFOR (AIP), Restoration1 (TZP), 12+ PE-backed platforms |
Ranges reflect 2026 buy-side observations across active capital partners and named industry consolidators. Specific transaction outcomes vary by geography, customer concentration, and deal structure.
Named M&A transactions (2021-2025)
From the CT desk
What 2026 disaster restoration M&A activity reveals
- •BELFOR Holdings (American Industrial Partners), Restoration1 (TZP Group), plus 12+ PE-backed restoration platforms absorbed announced add-ons in 2026 according to public M&A trade tracking, with median EBITDA multiples 5.0x-11.0x for $1M+ EBITDA targets.
- •TPA program penetration (Crawford, Sedgwick, Code Blue, Innovation Group preferred-vendor status) is the single largest valuation lever above the EBITDA threshold. Active programs versus expired programs is the buyer-side underwriting binary.
- •Water-mitigation share above 50% of revenue commands 0.5x-1.0x EBITDA premium because water work is faster-cycle and higher-margin than reconstruction. Above 60% reconstruction share can dilute the mitigation multiple.
- •Franchise (Servpro, ServiceMaster Restore, Rainbow Restoration, BELFOR Franchise Group) versus independent operator status materially changes the buyer pool: franchisees typically sold to other franchisees in the same network, independents to PE platforms.
Related Cluster GuideFor the founder-perspective companion on how to sell a restoration company, see our guide.
For 2026 buyer-paid restoration sale playbook with 4x-6x EBITDA multiples, 60-120 day close, and $0 seller fee, see our reference.
Multiple at a Glance · 2026
Disaster Restoration Multiples · 2026
EBITDA multiples by buyer pool and TPA mix.
Source: CT Acquisitions analysis of disaster restoration M&A and active consolidator activity (BluSky, ATI, Belfor, multiple PE platforms).
| Target | Buyer | Year | What it tells us |
|---|---|---|---|
| ServiceMaster Brands acquired by Roark Capital | Roark Capital | 2020 | $1.55B+ disclosed; Roark Capital acquired ServiceMaster Brands (parent of ServiceMaster Restore, Rainbow Restoration, Terminix, etc.) and integrated into Neighborly Holdings. |
| First Onsite acquired by FirstService | FirstService Corporation (NYSE: FSV) | 2020 | Strategic acquisition created major Canadian + US restoration platform. |
| BELFOR continued growth | American Securities Capital Partners + Goldman Sachs Asset Management | 2022-2025 | Largest US dedicated disaster restoration company continues regional consolidation. |
| Servpro Industries Blackstone investment | Blackstone | 2019-2025 | Blackstone continues to back the largest US restoration franchise platform. |
| BluSky Restoration Contractors growth | Partners Group + Kohlberg & Company | 2022-2025 | Multi-state direct operator continues aggressive regional rollups. |
| ATI Restoration continued M&A | PE-backed | 2022-2025 | Major PE-backed direct operator continues regional consolidation. |
The named buyer landscape
National dedicated platforms (the dominant capital)
- BELFOR Property Restoration (American Securities Capital Partners + Goldman Sachs Asset Management, $2B+ revenue), the largest US dedicated disaster restoration company.
- Servpro Industries (Blackstone, ~2,200+ franchise locations, $4B+ system-wide), the largest US restoration franchise platform.
- BluSky Restoration Contractors (Partners Group + Kohlberg & Company), multi-state direct operator.
- ATI Restoration (PE-backed, ~$700M+ revenue).
- First Onsite Property Restoration (FirstService Corporation NYSE: FSV), major Canadian + US operator.
Franchise platforms
- PuroClean (PE-backed, ~370+ franchise locations).
- Rainbow Restoration (Neighborly Holdings, Roark Capital subsidiary), franchise.
- ServiceMaster Restore (Neighborly Holdings, post 2020 Roark Capital acquisition of ServiceMaster Brands).
- Cotton Holdings, Restoration Pros, Code Blue, multiple regional platforms.
PE sponsors active in this space
- Partners Group + Kohlberg & Company (BluSky), American Securities Capital Partners + Goldman Sachs Asset Management (BELFOR), Blackstone (Servpro Industries), FirstService Corporation (First Onsite), Roark Capital (Neighborly Holdings parent), Aurora Capital Partners, MidOcean Partners, plus multiple property-services PE funds.
What each buyer will pay for vs. what they reject
- Will pay premium for: mitigation-heavy revenue mix (60%+ mitigation), TPA program participation (Crawford & Company, Sedgwick, ECCM, plus direct named-carrier programs with State Farm Premier Service, Allstate Good Hands Repair Network, Liberty Mutual, USAA, Farmers, etc.), 24/7 emergency response infrastructure, modern operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated workflow), IICRC certifications (Water Damage Restoration WRT, Fire/Smoke Restoration FSRT, Applied Microbial Remediation AMRT, Bio-Recovery), multi-state licensure footprint, IRR (insurance restoration referral) program participation.
- Will compress or reject: reconstruction-heavy revenue mix (reconstruction is ~10-15% GM vs. mitigation 60-75% GM), no TPA program participation, weak 24/7 response infrastructure, legacy paper-based workflow, owner-operator dependence, single-territory operations, IICRC certification gaps, weak insurance restoration referral network, open OSHA matters, mold-remediation compliance issues.
The operator-level KPI playbook buyers will diligence
Revenue mix (the major multiple-driver)
- Mitigation revenue percentage: Water, fire, mold, bio mitigation. 60%+ mitigation is the platform-buyer benchmark.
- Reconstruction revenue percentage: ~10-15% gross margin; necessary but margin-compressive.
- Mitigation gross margin: 60-75% typical (high-margin emergency work).
- Reconstruction gross margin: ~10-15% typical.
TPA + carrier program participation
- TPA programs: Crawford & Company, Sedgwick (Sedgwick Claims Management Services), ECCM, etc.
- Direct named-carrier programs: State Farm Premier Service, Allstate Good Hands Repair Network, Liberty Mutual, USAA, Farmers, Travelers, Nationwide, etc.
- Program revenue percentage: Track program vs. non-program revenue.
- Program performance scores: Customer satisfaction, cycle time, quality.
Operating infrastructure
- 24/7 emergency response: Dispatch + on-call crews + equipment readiness.
- Operating system: Restoration Manager, DASH (Dispatch and Service Hub), Encircle, Albi, Job-Dox, Xactimate-integrated workflow.
- Xactimate certification + scoping competency.
- Equipment fleet: Dehumidifiers, air movers, water extractors, HEPA filters, drying equipment, content cleaning.
IICRC certifications + licensing
- IICRC certifications: WRT (Water), FSRT (Fire/Smoke), AMRT (Applied Microbial), Bio-Recovery, Carpet Cleaning, Odor Control.
- State mold remediation licensing (TX, FL, NY, LA, etc.).
- OSHA compliance and workers’ comp EMR.
- Background-checked technician workforce.
Workforce
- Project manager count and tenure.
- Technician headcount and IICRC certifications.
- Estimator count and Xactimate certification.
- Workers’-comp EMR (restoration has higher physical risk than typical services).
Dangers and traps
1. Reconstruction-heavy revenue mix
Reconstruction is ~10-15% gross margin vs. mitigation 60-75%, the single biggest multiple-driver. Heavy reconstruction mix compresses materially.
2. No TPA / carrier program participation
TPA (Crawford, Sedgwick, ECCM) and direct carrier programs (State Farm Premier Service, Allstate Good Hands, Liberty Mutual) are the durable customer base.
3. Weak 24/7 emergency response
Restoration is dispatch-driven; weak response infrastructure costs program standing.
4. Legacy paper-based workflow
Modern operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated) is non-negotiable for premium platforms.
5. Owner-operator dependence
Build the project management bench.
6. IICRC certification gaps
WRT, FSRT, AMRT, Bio-Recovery certifications are baseline for premium multiples.
7. Mold remediation compliance
State mold licensing requirements vary (TX, FL, NY, LA). Open compliance matters are real diligence risk.
8. Single-territory operations
Multi-state platforms achieve premium multiples; single-territory + franchise compresses.
Our POV in 2026
Disaster restoration is one of the most active PE consolidation themes. BELFOR (American Securities + Goldman Sachs Asset Management) is the largest dedicated operator at $2B+ revenue. Servpro (Blackstone) is the largest franchise platform at $4B+ system-wide. BluSky (Partners Group + Kohlberg & Company), ATI Restoration, First Onsite (FirstService Corporation NYSE: FSV), PuroClean, Rainbow Restoration, and ServiceMaster Restore (Neighborly Holdings under Roark Capital) compete. Mitigation-to-reconstruction revenue mix is the major multiple-driver.
The right time to prepare is 12-18 months before going to market, drive mitigation revenue mix, lock in TPA + carrier program participation, modernize operating system, build technician bench with IICRC certifications.
Preparing your business for sale: 12-18 months out
- Get multi-year audited financials.
- Drive mitigation revenue mix to 60%+.
- Lock in TPA program participation (Crawford, Sedgwick, ECCM).
- Pursue direct named-carrier programs (State Farm Premier Service, Allstate Good Hands, Liberty Mutual, USAA).
- Modernize operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated).
- Build IICRC-certified technician bench (WRT, FSRT, AMRT, Bio-Recovery).
- Confirm state mold remediation licensure.
- Document 24/7 emergency response infrastructure.
- Resolve OSHA compliance and workers’-comp EMR.
- Run a competitive process. BELFOR (American Securities + Goldman Sachs Asset Management), Servpro Industries (Blackstone), BluSky (Partners Group + Kohlberg & Company), ATI Restoration, First Onsite (FirstService Corporation NYSE: FSV), PuroClean, Rainbow Restoration (Neighborly), ServiceMaster Restore (Neighborly), Cotton Holdings, plus PE sponsors directly.
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About the Author
Christoph Totter is the founder of CT Acquisitions, a buy-side partner headquartered in Sheridan, Wyoming. We work directly with 100+ buyers, search funders, family offices, lower middle-market PE, and strategic consolidators, including direct mandates with the largest consolidators that other intermediaries cannot access. The buyers pay us when a deal closes, not the seller. No retainer, no exclusivity, no contract until close. Connect on LinkedIn · Get in touch
Frequently asked questions
What is the typical multiple for a disaster restoration business in 2026?
Single-territory franchise operators ($300-700k SDE) typically sell at 3x-5x SDE. Profitable diversified single-territory operators with mitigation + reconstruction ($500k-1.5M SDE) go 4x-6x SDE. Small multi-territory regionals ($1.5-4M EBITDA) go 5x-7x EBITDA. Regional restoration platforms with strong TPA program revenue ($4-12M EBITDA) go 6x-8x. Premium scale platforms ($12M+ EBITDA, multi-state, named carrier program participation, modern operating system) reach 7x-11x+.
Who are the active buyers of disaster restoration businesses right now?
Dedicated platforms: BELFOR Property Restoration (American Securities Capital Partners + Goldman Sachs Asset Management, $2B+ revenue, largest US dedicated operator), Servpro Industries (Blackstone, ~2,200+ franchise locations, $4B+ system-wide, largest US restoration franchise platform), BluSky Restoration Contractors (Partners Group + Kohlberg & Company), ATI Restoration (PE-backed, ~$700M+ revenue), First Onsite Property Restoration (FirstService Corporation NYSE: FSV). Franchise: PuroClean (PE, ~370+ locations), Rainbow Restoration (Neighborly Holdings under Roark Capital), ServiceMaster Restore (Neighborly Holdings). PE sponsors: Partners Group + Kohlberg & Company, American Securities Capital Partners + Goldman Sachs Asset Management, Blackstone, FirstService Corporation, Roark Capital, Aurora Capital Partners, MidOcean Partners.
What hurts a disaster restoration business’s valuation most?
Reconstruction-heavy revenue mix (reconstruction is ~10-15% gross margin vs. mitigation 60-75%, the single biggest multiple-driver), no TPA program participation, weak 24/7 emergency response infrastructure, legacy paper-based workflow, owner-operator dependence, single-territory operations, IICRC certification gaps, weak insurance restoration referral network, OSHA compliance issues, mold remediation compliance gaps.
Why is the mitigation-vs-reconstruction mix so important?
Mitigation work (water extraction, drying, mold remediation, fire cleanup) has 60-75% gross margins because of premium emergency response economics and minimal materials cost. Reconstruction (rebuilding what was damaged) has ~10-15% gross margins because of materials cost and competitive bidding. Operators with 60%+ mitigation revenue mix achieve premium multiples because of margin durability; reconstruction-heavy operators compress materially. Premium platforms target mitigation-only or mitigation-primary positioning.
What is TPA program participation?
Third-Party Administrators (TPAs) like Crawford & Company and Sedgwick Claims Management Services manage insurance claims for multiple carriers and dispatch restoration work to network operators. Direct named-carrier programs (State Farm Premier Service Program, Allstate Good Hands Repair Network, Liberty Mutual, USAA, Farmers, Travelers, Nationwide) give insurance carriers direct relationships with vetted restoration operators. TPA + named-carrier program participation is the durable customer base for restoration; operators outside these programs compete in a more commoditized referral market.
Do I have to pay a broker fee?
No. CT Strategic Partners runs a buyer-paid M&A advisory model. The seller pays nothing. The buyer pays the success fee at closing.
How long does it take to sell a disaster restoration business?
Once you go to market with a buyer-paid advisor, a typical process runs 5-8 months from initial outreach to closing. Add 12-18 months of preparation work before going to market.
When should I start preparing if I plan to sell in 2027 or 2028?
12-18 months before going to market is the right window. Highest-leverage pre-sale work: drive mitigation revenue mix to 60%+, lock in TPA + direct carrier program participation, modernize operating system (Restoration Manager, DASH, Encircle, Xactimate-integrated), build IICRC-certified technician bench, document 24/7 emergency response infrastructure, resolve OSHA compliance.
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