What should I look at in a water restoration company’s job photo and moisture logs?
Open several finished job files and check that each has dated before, during and after photos, daily moisture readings that trend down, equipment records and a clear sign-off. Missing readings, or photos taken in a rush, suggest a weak process.
Pick files at random rather than letting the seller choose. For each job, look for a start-of-job set of photos, readings taken at regular visits, and a final set showing dry results. The readings should tell a story: high at the start, falling as equipment runs, and a recorded point where the crew decided the structure was dry.
Compare the logs with the invoices. If the bill covers many days of equipment but the file shows few readings, expect questions from the insurer, and possibly disputes or unpaid portions. Look for notes on who took the readings, what instruments were used and whether the crew’s habits are consistent from one technician to another.
Ask where the records are stored and whether they can be found quickly when an insurer or homeowner asks. Files kept on one technician’s phone are a risk. Ask about any claim that came back because the drying was questioned, and how the company responded. These files will be the best guide to how the business behaves under pressure, and your accountant can help link them to revenue. Also ask who reviews the files before a job is closed. Ask for a closed job that went badly, and see what the file shows.
Key takeaways
- Choose the sample of job files yourself.
- Check that readings and photos tell a consistent drying story.
- Match logs against invoices to find billing questions.
- Confirm records are stored somewhere the company controls.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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