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RESTORATION · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=64, BizBuySell trailing-12-month closed deals)RESTORATION · Revenue recognized before insurance settlement in 61% of deals · Cash SDE 20–35% lower than accrualRESTORATION · TPA programs registered in owner personal name in 43% of deals · Non-transferable, 60–180 day re-approvalRESTORATION · Supplement revenue at peak-negotiation levels in 34% of deals · 8–18% normalization on 3-yr avgRESTORATION · IICRC certification gaps (WRT/ASD/AMRT/FSRT) in 41% of deals · TPA approved-vendor riskRESTORATION · Industry size $210B (IBISWorld 2024) · 6.4% CAGR 2020–2025 · Climate-loss tailwind durableRESTORATION · BELFOR (largest non-franchise) + BluSky (Olympus) + ATI Restoration + Servpro 2,200+ franchises leadRESTORATION · Alacrity + Contractor Connection (Crawford) + Code Blue dominant TPA networksRESTORATION · Xactimate (Verisk) is dominant carrier-accepted pricing standardRESTORATION · State Farm / Allstate / Farmers / USAA preferred-vendor panels tightening over trailing 24 monthsJAPAN · 損害保険 direct settlement · No TPA-mediated recurring channel · 2.0×–3.5× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=64 SMB transactionsRESTORATION · Q1 2026 · 2.5×–4.5× SDE band held quarter-over-quarter (n=64, BizBuySell trailing-12-month closed deals)RESTORATION · Revenue recognized before insurance settlement in 61% of deals · Cash SDE 20–35% lower than accrualRESTORATION · TPA programs registered in owner personal name in 43% of deals · Non-transferable, 60–180 day re-approvalRESTORATION · Supplement revenue at peak-negotiation levels in 34% of deals · 8–18% normalization on 3-yr avgRESTORATION · IICRC certification gaps (WRT/ASD/AMRT/FSRT) in 41% of deals · TPA approved-vendor riskRESTORATION · Industry size $210B (IBISWorld 2024) · 6.4% CAGR 2020–2025 · Climate-loss tailwind durableRESTORATION · BELFOR (largest non-franchise) + BluSky (Olympus) + ATI Restoration + Servpro 2,200+ franchises leadRESTORATION · Alacrity + Contractor Connection (Crawford) + Code Blue dominant TPA networksRESTORATION · Xactimate (Verisk) is dominant carrier-accepted pricing standardRESTORATION · State Farm / Allstate / Farmers / USAA preferred-vendor panels tightening over trailing 24 monthsJAPAN · 損害保険 direct settlement · No TPA-mediated recurring channel · 2.0×–3.5× EBITDA typicalMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=64 SMB transactions
Scored Listing·Restoration·Updated 2026-05-02
Mid-bandComposite

Independent restoration business, TPA partially owner-registered, AR cycle 74 days

§ 01 · Observed

What was documented in diligence.

TPA programs: Contractor Connection entity-registered (transferable); State Farm preferred contractor registered under owner's personal credentials — re-qualification required under new ownership. AR aging: 74-day average with $84,000 in 90+ day receivables from one large commercial loss claim under supplement dispute. Supplement settlement rate 71% — below the 80%+ benchmark for top-of-band. Accrual-cash gap: $142,000 on trailing 12-month P&L vs. cash deposits — lender adjusted SDE down $142,000 for underwriting. Franchise royalty (7% revenue) was excluded from broker SDE; adding it reduced stated SDE by $68,000.

§ 02 · Outcome

What happened.

Initial ask 4.2× broker SDE. After franchise royalty correction, accrual-cash adjustment, and TPA partial-loss discount, adjusted SDE declined 31%. Repriced to 3.1× adjusted SDE. State Farm TPA re-qualification risk priced into seller note structure. Closed at 3.1× with $80,000 seller note contingent on TPA re-qualification.

§ 03 · Structural Pattern

How this deal fits the four-pillar framework.

Mid-band placement reflects the convergence of partial TPA transferability risk, accrual-cash timing gap, and franchise royalty omission — three independent earnings quality issues that individually would each compress the multiple. Combined, they repriced the deal from top-of-band to mid-band.

This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.

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Methodology · Acquidex v1.0, §3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8). Methodology paper forthcoming Q3 2026.

Sources · BizBuySell closed-deal data, IBBA Market Pulse Q3–4 2025 and Q1 2026, Pratt's Stats SMB transaction database, Acquidex direct deal observations.

Author · Avery Hastings, CPA. Tokyo-based; SMB and lower-middle-market acquisitions in the US and Japan.

Independent restoration business, TPA partially owner-registered, AR cycle 74 days — Restoration Deal Teardown | Acquidex | Acquidex