What should I check before buying a restoration company?

A restoration company handles water, fire and mould damage. Most of its work arrives by referral from insurers, adjusters and property managers rather than from advertising. That shapes what you check. You are buying relationships, a crew that can move fast, and the paperwork that gets the company paid.

Where the jobs come from

Ask for a list of jobs by source over several years. Find out whether the company sits on an insurer’s preferred list or a referral program, and read what that arrangement says about a change of owner. Some relationships depend on the person who built them. Ask to meet the key contacts before closing, if the seller agrees.

Receivables and how insurers pay

Insurers often pay after a job is reviewed, and that can take a while. Ask for an aged list of what is owed and by whom. Look for disputed invoices and jobs that were reduced after review. A restoration company can look busy and still be short of cash, so ask how the seller has funded the gap between finishing a job and being paid.

Crews, equipment and job files

The company must be able to send people at any hour. Ask who is on call, who holds the certifications the work needs, and how many of them are likely to stay. Have the dehumidifiers, air movers and trucks inspected, and ask which are owned and which are financed. Then read a sample of closed job files: photos, moisture readings and sign-offs should be there.