What are the 2-3 Most Common Hurdles When Selling a Restoration Business?

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Q: What are the 2-3 most common hurdles when selling a restoration business?

JT says: Restoration businesses vary widely in size, services, accounting methods, cultures, owner involvement and more.  Considering this variety, the following typically gives buyers and lenders the most heartburn:

Inconsistent Sales:  Likely resulting from a large weather event, LL/CAT project, it creates uncertainty when determining an accurate Adjusted EBITDA/Cash Flow.

Improper Accounting:  Possibly ‘kitchen table’ accounting, or more complex issues- Timing of revenue recognition, WIP adjustments, overhead allocations, etc.  

Owner Involvement:  Owners of smaller companies (often husband/wife teams) wear many hats, replacing their knowledgebase, skillsets and responsibilities can be daunting.

The above issues do not automatically mean a business is not saleable.  Extra planning is simply needed for the best possible outcome.  

Get Answers + Get Prepared = Get Retired


Have a question for JT? Don’t worry, all questions will remain anonymous! You can email JT at jt@exitstrategies360.com.

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JT Kraai

As CEO and Founder of Exit Strategies 360, JT takes extreme pride in helping business owners prepare and navigate the business sales process.  As an M&A Advisor, Broker and Consultant for 20+ years, he has structured hundreds of transactions for virtually any scenario, keenly understanding the needs of both buyers and sellers. 

JT indicates, “Most business owners are unaware of their options when it comes to preparing and selling their business.  These options can increase cash and decrease taxes by hundreds of thousands of dollars.  An educated decision is always the best.”

He then adds, “An owner’s weakest link is fear… without knowing how to proceed, they don’t.  We offer the tools, process and roadmap to proceed with confidence.”  

With over 25+ years of entrepreneurial ventures including five start-ups/sales, he has a solid understanding of what it takes to successfully create, expand and maximize business values. JT instinctively has the expertise and capacity to think about critical factors affecting the success of a transaction, providing an extremely valuable perspective and advantage for his clients.  

According to JT, “You’ll probably do this only once in your life… let’s do it right.”

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