Premium Price - Weak Cash Flowsmart_display

Published: May 19, 2026
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Strong assets and insurance relationships, but the deal math is ugly.

Premium Price - Weak Cash Flow

This restoration company in Greater Orlando is listed at $1.2M, generating about $1.1M in revenue and $262K in cash flow.

It has insurance-driven revenue, preferred vendor relationships, and over $512K in included assets.

That sounds strong - until you run the deal through financing.


Deal Snapshot

Asking Price$1,195,000
Cash Flow$262,000
Profit Margin23.5%
Revenue$1,114,000
Cash Flow Multiple4.56x

After Financing

Here is what you actually keep:

Annual Debt Service$177,604
DSCR1.52
Net Cash Flow$84,396

You are buying a million-dollar business to make about $84K per year after debt.

That is the problem.


Where It Breaks

The valuation does not match the performance.

  • 4.56x cash flow multiple vs ~2.4x industry average
  • 23.5% margin vs ~31.8% industry average
  • Only $84K post-debt cash flow
  • DSCR at 1.52, which leaves limited cushion

They are asking for premium pricing without premium performance.


What Looks Good

There are positives here.

  • Over $512K in included restoration equipment and assets
  • Preferred vendor relationships with insurance carriers and TPAs
  • Essential service demand from water, fire, mold, and storm events
  • Potential capacity to scale from 3 crews to 5 crews

But assets and relationships do not fix a bad valuation.


The Biggest Red Flag

This business was only established in 2023.

That means you are paying a premium multiple for a business with a very short operating history.

In restoration, relationships, crews, response time, and insurance workflows matter. Two years is not enough history to blindly trust the numbers.


What This Really Is

This is an asset-heavy business priced like a proven platform.

  • Good assets
  • Interesting insurance relationships
  • Short track record
  • Weak buyer cash flow

That is not enough to justify the price.


BizHub Verdict

This deal scores a 4.3 / 10.

Not because restoration is a bad industry - but because this deal is priced too aggressively for the cash flow, margin, and track record.

Premium price. Short history. Weak take-home.

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