A restoration business plan exists for one reason: to convince a third party (banker, TPA program manager, investor, partner) that you understand the economics of the business you’re building. Most plans fail not because the writing is bad, but because the numbers don’t reflect how restoration actually operates.
The 8 sections that have to be in it
Eight sections that have to be in the plan.
Executive summary. One page. Who you are, what you do, where you operate, the funding ask, and the headline financial outlook.
Company overview. Legal structure, ownership, location, service area, founding team backgrounds.
Market analysis. The U.S. damage restoration market is roughly $7.1 billion with ~60,000 companies. Identify your local market size, top 5 competitors, and your differentiation.
Marketing and sales plan. How you’ll generate work — referral channels, TPA enrollments, digital, fleet visibility.
This is where most restoration business plans collapse under scrutiny. Bake in real numbers:
Revenue per truck per month: $30,000 – $50,000 is realistic for a mature crew on consistent water/mold work. Don’t model $80,000/truck unless you can show how.
Gross margin: 40-55% on mitigation, 25-35% on reconstruction. Blended typically 35-45%.
Labor as % of revenue: 28-35% for production technicians.
Equipment depreciation: 5-7 years straight line on dehus and air movers.
Marketing spend: 5-10% of revenue is realistic for growth-mode restoration companies.
DSO (days sales outstanding): Plan for 60-90 days on insurance work, 30 on cash work. This is the cash flow killer.
What TPA program managers look for
What TPA program managers look for.
If your business plan exists to support a TPA enrollment application (Contractor Connection, Alacrity, Code Blue), they care about:
Service area definition and response time commitments.
Insurance coverage levels meeting program minimums.
IICRC certifications across the team.
Production capacity (number of technicians, trucks, equipment cache).
Quality systems — photo documentation, scope adherence, customer satisfaction tracking.
Financial stability evidence.
What bankers look for
SBA 7(a) lenders and restoration-friendly community banks want different things than TPAs:
Owner cash injection: 10-20% of total project cost.
Personal guarantee. Non-negotiable.
Industry experience. 2+ years in restoration is the soft minimum.
DSCR (debt service coverage ratio) above 1.25.
Realistic AR aging assumptions. Bankers know insurance pays slow.
The revenue model you should actually run
The revenue model you should actually run.
Most failed restoration business plans assume linear revenue growth. Real restoration revenue is lumpy, seasonal, and event-driven (CAT events, freeze events, hurricane events). Build your model with a base run rate plus a CAT event uplift assumption — and keep enough working capital for a slow quarter.
FAQs about restoration business plans
How long should a restoration business plan be?
20-30 pages for a bank or investor plan. 5-10 pages for a TPA enrollment package. Anything over 40 pages signals padding.
What revenue should I project for year 1?
A 1-truck water-only operation typically lands $250,000 – $500,000 in year 1. A 2-truck operation with fire capability and active TPA enrollments can hit $750,000 – $1.2M. Don’t project $2M in year 1 unless you have signed referral agreements to back it up.
Do I need a business plan if I’m self-funding?
Yes. Even without a banker, the business plan forces you to confront equipment costs, insurance levels, marketing budget, and the math of when you can hire your first employee. Self-funded operators who skip the plan tend to run out of cash in month 9.
What is the typical EBITDA margin for a restoration company?
Mature, well-run restoration companies operate at 12-18% EBITDA margins. Owner-operator shops often run 5-10% because the owner is undercompensated. Multi-location regional players in good markets can push 18-22%.
Should I include reconstruction in my year-1 plan?
Most operators add reconstruction in year 2 or 3, not year 1. Reconstruction adds licensing complexity, longer DSO, lower gross margin, and dramatically more capital requirements. Lead with mitigation, build cash, then layer reconstruction.
Equipment is the line item that surprises new restoration operators the most. The catalog photos look cheap. The package quotes from suppliers look expensive. The truth is somewhere in between, and the right answer depends on whether you’re outfitting one truck or three.
Mold: Negative air machines ($800 – $1,500), additional HEPA scrubbers, containment poly and zipper doors, full PPE program. Plan on $5,000 – $10,000 added.
Contents: Pack-out boxes, content cleaning station, ultrasonic cleaner ($2,000 – $8,000), storage racks. Plan on $5,000 – $20,000 added.
Vehicle costs (2026)
Used cargo van + basic shelving: $35,000 – $50,000.
New cargo van + custom buildout: $60,000 – $90,000.
Industry models for fully-equipped multi-truck launches put the initial fleet investment at ~$80,000 for two service vans, with total capital expenditures including specialized equipment around $172,000.
Three realistic startup tiers
Three realistic startup tiers — no sticky dollar stickers.
Tier 1: Lean Owner-Operator ($80K – $150K total cash)
1 used van
Water mitigation only
16 air movers, 2 small dehus, 1 LGR, 1 HEPA
Owner-only crew
Tier 2: Mid-Tier Multi-Service ($250K – $450K total cash)
Tier 3: Multi-Truck Production Shop ($500K – $1M+ total cash)
3-5 vans + 1 box truck
Water + fire + mold + contents + light reconstruction
80+ air movers, 12+ dehus, 8+ HEPA, full negative air kit, content cleaning station
5-8 technicians + dispatcher
Equipment pitfalls to avoid
Buying everything new at launch. Used dehumidifiers and air movers from auctions or other restorers can cut equipment cost 40-60%.
Underbuying air movers. 16 is the practical floor — large losses eat 30+ on day one.
Skipping the thermal camera. It pays for itself in scope defensibility on the first 3 jobs.
Cheap moisture meters. Insurance adjusters notice. Buy Delmhorst or Tramex.
Ignoring asset tracking. By job 50 you’ll lose track of where your equipment is. Plan tracking from day one.
FAQs about restoration equipment costs
How many air movers do I need to start?
Minimum 16. A typical Cat 1 water loss in a 2,000 sq ft home requires 12-20 air movers running 3-5 days. Underbuying means you can only run one job at a time, which kills revenue per truck.
Should I buy used or new restoration equipment?
Air movers and small dehus: used is fine if you can verify hours and condition. Large LGR dehumidifiers: buy new — refurb risk on compressor failure isn’t worth the savings. Trucks: used with a real PPI is the budget winner.
What is the cheapest way to start a restoration company?
Lean owner-operator with $80K cash: used van, 16 air movers, 2 dehus, 1 HEPA, water mitigation only, owner does all production for the first 6 months. Add capability as cash flow allows.
Do I need a truck-mount extractor?
For pure water mitigation, a portable extractor ($3,500 – $5,000) is enough for the first year. Truck-mounts ($15,000 – $25,000) become worth it when you’re running 5+ jobs/week or doing significant carpet cleaning.
What software should I budget for?
Xactimate ($150-200/month base + per-estimate fees), Encircle or Magicplan ($50-150/month), DASH or Restoration Manager ($200-500/month), QuickBooks ($30-90/month). Plan on $400-800/month in software once you’re operational.
Most restoration companies plateau at one truck and one owner-operator burning out at 70-hour weeks. The jump to two trucks is harder than it looks — and the jump from two to five is what separates a job from a real business. This is the operator’s version of how that scaling actually happens.
Why most restoration companies stay stuck at one truck
Why most restoration companies stay stuck at one truck.
The 1-truck plateau isn’t a marketing problem — it’s a structural one. The owner is the estimator, the dispatcher, the lead tech, the QA reviewer, the AR clerk, and the salesperson. Every additional job adds load to all six roles simultaneously. There is no room to grow until at least one role gets unloaded.
The hiring sequence that actually scales
The hiring sequence that actually scales.
Hire #1: Lead Technician (~$40K monthly revenue trigger). Frees the owner from production. Pay $22-32/hr depending on market and certifications.
Hire #2: Helper / Apprentice (~$60K monthly revenue trigger). Fills out a 2-person production crew. Pay $17-22/hr.
Hire #4: Second Lead Tech (~$120K monthly revenue trigger). Enables a second crew, second truck.
Hire #5: Estimator (~$150K monthly revenue trigger). Owns Xactimate sketch, scope, and supplements.
Hire #6: Project Manager / Operations Manager (~$200K+ monthly revenue trigger). Owns daily production oversight across multiple crews.
The dispatch problem
One truck is easy — you go where you go. Two trucks is the hardest dispatch challenge in the company because the owner is still mentally dispatching from the field. Three+ trucks demands a real dispatcher and a real software system. Restoration Manager, DASH, Encircle, or Job Nimbus are all viable. The wrong answer is a whiteboard in the office past truck #2.
Equipment cache scaling
The naive math is “double the trucks, double the equipment.” The real math accounts for utilization:
1 truck: 16-20 air movers, 2-3 dehus, 2 HEPA.
2 trucks: 40-50 air movers, 5-7 dehus, 4 HEPA. (Not 32-40 air movers — concurrent jobs eat more.)
3 trucks: 70-90 air movers, 10-12 dehus, 6+ HEPA, asset tracking system non-negotiable.
5 trucks: 120+ air movers, 18+ dehus, dedicated equipment tech who handles cleaning/maintenance.
Working capital as you scale
Insurance work pays in 60-90 days. Payroll runs every 2 weeks. The faster you grow, the more cash you have tied up in AR. A useful rule:
Cash on hand should equal 60 days of operating expenses + 30 days of net AR.
Operators who scale without honoring this rule end up factoring receivables at painful discount rates (often 2-5% per invoice) just to make payroll. Build a line of credit before you need it.
The org chart that supports 5 trucks
The org chart that supports five trucks.
Once you’re past 3 trucks, the org chart is the company. A typical 5-truck shop has:
Equipment Tech (part-time at 3 trucks, full-time at 5)
That’s 12-18 people running ~$2-4M in revenue.
FAQs about scaling a restoration company
How much revenue do I need before hiring my first employee?
$30,000 – $40,000 in monthly revenue, sustained for 60+ days. Hiring before that level usually means the owner is still on the truck and the new hire is an idle expense.
How many trucks can one dispatcher handle?
A trained dispatcher comfortably handles 4-6 trucks. Beyond 6, you need either a second dispatcher or a project manager / dispatcher hybrid model with crews assigned to specific PMs.
What’s the right truck-to-technician ratio?
2 technicians per truck is the working standard for water mitigation. Fire and contents work often pushes to 3 per truck because of pack-out labor. Mold remediation runs 2-3 per truck depending on containment scope.
When should I add reconstruction services?
Most operators add reconstruction in year 2-3, after mitigation revenue is stable at $1M+ annual. Earlier addition spreads capital and management attention too thin. Reconstruction also extends DSO from 60 days to 90-120 days, which strains cash flow.
Should I open a second location to scale?
Not until your primary location runs 4+ trucks profitably and you have a proven Operations Manager who can be promoted to run location #1 when you focus on launching #2. Premature multi-location expansion is the most common reason 7-figure restoration companies blow up.
The single biggest reason restoration companies stall at 5-10 employees isn’t sales, marketing, or capital — it’s role confusion. When everyone owns everything, nobody owns anything. This is the org chart and role definitions that scale.
The four functional buckets
Four functional buckets on the org chart.
Every restoration company, no matter the size, operates through four functional buckets. The org chart is just how those buckets get assigned to humans.
Sales / Estimating: Get the work, scope the work, price the work.
Production: Do the work to scope, on time, with documentation.
Operations / Dispatch: Schedule the work, deploy people and equipment, monitor progress.
Admin / Finance: Bill the work, collect the money, run AR/AP, payroll, compliance.
In a 1-truck shop, the owner does all four. In a 50-employee shop, each bucket has 3-5 people. The transition between is where companies break.
Role definitions that hold up
Role definitions that hold up.
Owner / President
Strategy, banking, major TPA relationships, key insurance carrier relationships, hiring, culture, financial oversight. Past 5 trucks, the owner should not be on jobs unless it’s a CAT event or a VIP customer.
Operations Manager
Owns production across all crews. Responsible for safety, equipment, training, technician performance, and quality control. KPI: jobs completed on schedule and to scope.
Estimator
Owns scope and pricing. Sketches in Xactimate, builds estimates, writes supplements, interfaces with adjusters. KPI: scope accuracy, supplement approval rate, estimate cycle time.
Project Manager (PM)
Owns 8-15 active jobs end-to-end. Customer communication, photo documentation, scope adherence, schedule, billing readiness. KPI: customer NPS, days to invoice ready, scope-vs-actuals variance.
Runs a 2-3 person crew on the truck. Owns documentation in the field, daily moisture readings, safety, customer experience on site. KPI: drying days, photo completeness, customer feedback.
Office Manager / Bookkeeper
Owns AR, AP, payroll prep, compliance filings, vendor management, certificate of insurance management. KPI: DSO, AR aging, on-time payroll.
How the chart evolves by employee count
How the chart evolves by employee count.
Size
Org Structure
1-3 employees
Owner does sales/estimating/dispatch/AR. Lead Tech + Helper run production.
4-7 employees
Add Office Manager (AR/AP/intake). Owner still estimates and dispatches.
8-12 employees
Add Estimator and Dispatcher. Owner moves to sales relationships and oversight.
13-20 employees
Add Operations Manager and PM(s). Owner exits production decisions entirely.
20+ employees
Multiple PMs, dedicated equipment tech, marketing role, possibly second estimator.
RACI for the most common breakdowns
The biggest role conflicts in restoration org charts are around: scope changes mid-job, supplement responsibility, customer complaints, and equipment loss. Document RACI (Responsible, Accountable, Consulted, Informed) for each:
Scope change mid-job: Lead Tech responsible for surfacing it, PM accountable for approving and updating estimate, Estimator consulted, Customer informed.
Supplements: Estimator responsible and accountable, PM consulted, Adjuster the recipient.
Equipment loss: Lead Tech responsible for reporting, Operations Manager accountable for resolution, Office Manager informed for asset register update.
FAQs about restoration org charts
When should I hire an Operations Manager?
When you have 3+ active production crews running daily. Below that, the owner can still maintain quality oversight personally. Above that, things slip without a dedicated ops role.
Should the estimator and PM be the same person?
In small shops (under 8 employees), yes — one person handles both. Past 10 employees, separate them. The skillsets diverge: estimating is a pricing-and-defense role, PM is a customer-and-schedule role.
Do I need a dedicated dispatcher or can the office manager dispatch?
Office Manager can dispatch up to 2-3 trucks. Past that, dispatch demands too much real-time attention to combine with billing/AR work. Split the roles.
What’s the right pay band for an Operations Manager?
$70K – $110K base + 5-15% performance bonus is the typical 2026 range for restoration Operations Managers, depending on market and revenue size. Multi-location regional ops managers push $130K-$160K.
How do I avoid hiring my way into bloat?
Tie every role to a revenue trigger and a documented KPI. If a role can’t be tied to a measurable output, it’s not yet a role — it’s the owner offloading anxiety.
The restoration M&A market is the busiest it’s ever been. Private equity has deployed $6 billion+ across 50+ platforms since 2018, with notable exits like HighGround (13 acquisitions in 5 years to Knox Lane) and American Restoration (an 8-brand roll-up to Morgan Stanley) proving the playbook. If you own a restoration company, understanding the exit math is no longer optional.
Current 2026 valuation multiples
How buyers frame valuation — without sticky multiples on the graphic.
Restoration company values vary widely by size, mix, and quality of operations:
$3M – $10M revenue shops: 4x – 7x EBITDA range, with quality operators commanding the high end.
$10M+ regional platforms: 7x – 10x EBITDA on PE platform deals.
Industry average: Average EBITDA multiples across restoration companies range 3.24x – 4.31x; the broader observable range is 3-8x.
What PE buyers actually want
What PE buyers actually want from a restoration platform.
The typical PE acquisition strategy is to pay 3.0x – 3.5x SDE for a $2M – $5M revenue shop, bolt it onto a platform, and exit in 3-5 years at 4.5x – 5.5x to a larger PE platform or strategic. To be the kind of shop they’ll pay for, you need:
Clean books. 3+ years of clean P&Ls, balance sheet, and tax returns. No commingled personal expenses.
Diversified revenue. No single TPA, carrier, or referral source over 30% of revenue.
Contracts and relationships (commercial property management portfolios).
Trained workforce (especially in tight labor markets).
The 24-month exit prep checklist
The 24-month exit prep checklist.
Months 1-6: Engage a CPA to clean books. Recast personal expenses to show true SDE/EBITDA. Build a 3-year P&L deck.
Months 6-12: Document SOPs, formalize org chart, name an Operations Manager who can run it without you. Diversify referral sources to cap any single source under 30%.
Months 12-18: Engage an M&A advisor (industry-specific is much better than generalist). Build CIM (Confidential Information Memorandum). Stress-test working capital.
Months 18-24: Run buyer process. Multiple LOIs preferred. Negotiate structure (cash at close, earn-out, rollover equity).
Deal structure: what’s actually offered
Most restoration deals are not 100% cash at close. Typical structures:
60-80% cash at close.
10-25% earn-out tied to revenue or EBITDA targets over 1-3 years.
5-15% rollover equity in the acquiring platform — often the highest-return component if the platform exits well.
Owner consulting/employment agreement for 1-3 years to support transition.
FAQs about restoration acquisitions and exits
What multiple will I get for my restoration company?
Realistic 2026 ranges: under-$1M revenue 1-2x SDE; $1M-$3M revenue 2.5x-3.5x SDE; $3M-$10M revenue 4x-7x EBITDA; $10M+ revenue 7x-10x EBITDA on PE platform deals. Quality of books and management depth move you within those ranges.
What’s the difference between SDE and EBITDA in restoration deals?
SDE (seller’s discretionary earnings) adds back the owner’s salary, benefits, and one-time/personal expenses — used for owner-operator businesses. EBITDA is earnings before interest, taxes, depreciation, amortization — used for businesses where the owner doesn’t run daily operations. Most sub-$3M restoration shops trade on SDE; most over-$5M trade on EBITDA.
How long does it take to sell a restoration company?
From engaging an M&A advisor to closing, plan on 9-15 months. Including the 12-24 months of pre-sale prep work, the full timeline is often 2-3 years.
Should I sell to PE or to a strategic?
PE typically pays slightly higher multiples but expects more rigor (clean books, management depth, growth story). Strategics may pay less in cash but offer faster close and less due diligence intensity. The right answer depends on your goals — maximum dollars vs. maximum simplicity.
What kills restoration company sale value?
Customer concentration over 30%, owner-as-rainmaker dependency, sloppy books, expired insurance, lapsed TPA enrollments, pending litigation, missing equipment records, and undisclosed family employees. Address all of these in the 24-month prep window.
Contractor Connection is the largest TPA in restoration. It’s also one of the most misunderstood — half the operators love it, half tolerate it, and a small but vocal minority leave it. This is what enrollment actually requires, what the program scoring really measures, and what the math looks like.
What Contractor Connection actually is
What Contractor Connection actually is.
Contractor Connection is a managed-repair network that contracts with insurance carriers to dispatch claims to a vetted contractor pool. When a policyholder reports a covered loss, Contractor Connection’s call center routes the assignment to a network contractor based on geography, capacity, performance scores, and program rules. Documentation, scope, and pricing flow through the Contractor Connection platform (DASH integration is common).
Who they’re vetting against
Contractor Connection vets contractors against strict requirements including insurance, background checks, and certifications. The contractor pool is filtered through:
Financial stability (often verified with current financials).
Customer service track record.
Proper business insurance at program-required limits.
IICRC certifications across the production team.
Standardized software systems for documentation and pricing.
Equipment and crew capacity for the service area.
Enrollment realities
Enrollment realities — capacity and compliance.
The single most common reason restoration contractors fail Contractor Connection enrollment is incomplete or inconsistent paperwork — not lack of qualification. Specifically:
Failing to complete the application in full.
Answering questions incorrectly or inconsistently across forms.
Misunderstanding what’s being asked (especially around insurance limits and certifications).
Missing or outdated company financial statements.
The other failure mode is more painful: passing all the vetting, paying the enrollment fee, and then never getting activated or assigned work because the program already has saturation in your geography.
How Contractor Connection scores you once you’re in
Once active, contractors are scored on a continuous basis. The KPIs typically include:
Cycle time — days from assignment to completion.
Customer satisfaction — survey scores from policyholders.
Scope adherence — variance between authorized scope and actuals.
Re-open rate — claims that need rework or supplemental visits.
Higher scores get more assignments. Lower scores get assignments throttled. Sustained low scores get contractors deactivated.
The economic math
The economic math once you are inside the network.
Contractor Connection pricing is typically Xactimate at carrier-approved settings, sometimes with a program discount applied (varies by carrier). Real-world margin on Contractor Connection water mitigation work in 2026 typically lands at 30-42% gross margin — solid but not exceptional. The trade-off is consistent volume and predictable AR.
Should you enroll?
Contractor Connection is a strong fit if:
You have spare capacity and want a steady fill of mitigation work.
Your team is disciplined about documentation and cycle time.
You can absorb the program fees and still hit margin targets.
You don’t already have direct carrier relationships in your market that would be cannibalized.
It’s a poor fit if you’re already capacity-constrained on higher-margin direct or cash work, or if your shop struggles with rapid scope and photo documentation.
FAQs about Contractor Connection
How long does Contractor Connection enrollment take?
Plan on 60-120 days from initial application to activation, sometimes longer if your service area is saturated. The vetting includes financial review, insurance verification, certification audits, and reference checks.
Does Contractor Connection charge enrollment fees?
Yes — initial enrollment fees and annual renewal fees apply, and they vary by program tier and number of locations. Confirm current fees directly with Contractor Connection during application.
What insurance limits does Contractor Connection require?
Typical program minimums are $1M / $2M general liability with mold endorsement, $1M commercial auto, and state-required workers comp. Some carrier programs within Contractor Connection require higher limits — confirm during enrollment.
Can I be in Contractor Connection and other TPAs simultaneously?
Yes. Most multi-program restoration contractors run Contractor Connection alongside Alacrity (now Altimeter), Accuserve (formerly CodeBlue), and various direct carrier programs. The key is capacity management — overcommitting kills your scores in all of them.
What’s the typical revenue contribution from Contractor Connection?
For active contractors, Contractor Connection often represents 15-35% of total revenue. Operators above 40% from a single TPA become uncomfortably concentrated and lose negotiating leverage.
Alacrity has been one of the most established TPA networks in restoration for over two decades — but in 2026 the program structure changed materially. Alacrity announced the strategic sale of its Managed Repair Division, which now operates as an independent company under the name Altimeter Solutions Group with its existing leadership and team. For restoration contractors, that means understanding both what Alacrity Solutions still does and what Altimeter now owns.
The 2026 split: what changed
The 2026 Alacrity / Altimeter split — what changed.
Alacrity Solutions (parent): Continues to operate insurance claims, repair, and recovery solutions, including TPA services for property and casualty carriers.
Altimeter Solutions Group (new independent entity): Houses the former Managed Repair Division — the contractor network arm — with its existing leadership and team.
Working relationship: Alacrity is working closely with Altimeter to ensure seamless collaboration across long-standing shared clients.
For contractors, the practical question is: which entity now owns your enrollment, your scoring, and your carrier relationships? In most cases, contractors enrolled in the Managed Repair Program now interface with Altimeter operationally, even though existing carrier relationships may still flow through Alacrity at the program level.
Contractor network enrollment requirements
Enrollment requirements before you chase volume.
Independent contractors entering the network must pass rigorous screening:
Criminal background checks for owners and key personnel.
Current state licenses and IICRC certifications.
Financial stability documentation (often 2-3 years of financials).
Proof of insurance at program-required limits.
Equipment and capacity verification for the service territory.
Recruiting Managers are reachable 8 a.m. to 5 p.m. PT for application questions at 1-866-953-3220, option 7.
How the Managed Repair Program operates
The Managed Repair Program (MRP) routes claims from participating carriers to vetted contractors based on geography, capacity, and performance scoring. Documentation, scope, and pricing are managed through the program’s contractor portal and software ecosystem. The contractor handles the work, the carrier or its TPA approves payment, and program fees / discounts apply per the contractor agreement.
Performance scoring
Like every major TPA, the MRP scores contractors on cycle time, customer satisfaction, scope adherence, photo and documentation completeness, and re-open rates. Contractors with sustained high scores get larger and more assignments; sustained low scores get throttled or removed.
The economics
The economics — margin math without sticker prices.
MRP work is typically priced at Xactimate carrier-approved settings, with program-specific discounts varying by carrier and contract. Realistic 2026 gross margins on MRP mitigation work fall in the 30-42% range, similar to other TPAs. The strategic value of the Alacrity / Altimeter relationship has historically been access to specific carrier programs that aren’t available through other TPAs.
Should you enroll?
Worth pursuing if:
You want exposure to carriers not available through Contractor Connection or Accuserve.
You have capacity and a documentation-disciplined production team.
You can absorb program fees and still hit margin targets.
The 2026 transition to Altimeter has introduced some operational uncertainty, so confirm enrollment paths and current carrier rosters directly during application.
FAQs about Alacrity / Altimeter
Did Alacrity sell its restoration program?
Alacrity announced the strategic sale of its Managed Repair Division, which now operates independently as Altimeter Solutions Group with its existing leadership and team. Alacrity Solutions itself continues to operate other claims and recovery services.
How do I apply to the Alacrity / Altimeter contractor network?
Alacrity Recruiting Managers are reachable 8 a.m. to 5 p.m. PT at 1-866-953-3220, option 7. Confirm with them whether your enrollment goes through Alacrity or Altimeter for 2026 — the operational handoff is still being clarified across some carrier relationships.
What insurance and certification requirements apply?
Typical: $1M / $2M general liability with mold endorsement, $1M commercial auto, workers comp, current state licensing, and IICRC certifications across the production team. Specific limits vary by carrier program.
Can I enroll in Alacrity and Contractor Connection simultaneously?
Yes. Most TPA-active restoration contractors carry multiple program enrollments to diversify carrier exposure. The constraint is capacity — over-enrollment without crew depth tanks your performance scores in all programs.
How long does Alacrity / Altimeter enrollment take?
Typically 60-120 days from application to activation. The 2026 transition between Alacrity and Altimeter may extend this in some markets — set realistic expectations during application.
Restoration marketing is not home services marketing. The buying cycle is broken — most homeowners don’t shop until water is on the floor, and most commercial accounts don’t buy a restorer until they need one at 2 a.m. Generic marketing playbooks designed for HVAC, roofing, or landscaping fall apart when applied to a category where 80% of demand is reactive emergency work and the other 20% is relationship-driven preferred-vendor placement.
This guide is the complete restoration marketing playbook for 2026: every channel that matters, the math behind each one, and the prioritization framework that separates restoration companies that grow from the ones stuck at the same revenue line for five years running.
What restoration marketing actually has to accomplish
What restoration marketing has to accomplish.
Most marketing strategies aim for one job: generate leads. Restoration marketing has to do four things simultaneously, and most companies only get one or two right.
The four jobs are capture emergency demand (be the first call when a pipe bursts), build commercial preferred-vendor pipeline (get on lists at facilities, property management firms, and TPAs), maintain referral momentum (stay top of mind with plumbers, agents, adjusters, and past customers), and build the brand asset (so when an insurance carrier or commercial buyer Googles you, what they find sells the relationship). A program that generates emergency leads but ignores commercial pipeline gets stuck at residential ceiling. A program that builds a great brand but ignores Local Service Ads loses the late-night calls that pay the rent.
The restoration marketing channel stack
The restoration marketing channel stack.
Here is the complete channel inventory for a modern restoration company, ranked by typical contribution to revenue for an established multi-truck operation.
1. Local Service Ads (LSAs)
LSAs are pay-per-lead Google products that appear above the map pack on local emergency searches. For restoration, this is the single most ROI-positive channel that exists. A “water damage near me” lead from LSAs typically costs between $35 and $85 in most US markets, and converted jobs run $3,000 to $15,000+ in revenue. Setup requires Google Guarantee verification, license uploads, insurance documentation, and review velocity. Most restoration companies underinvest in LSAs because the dashboard is unfamiliar — that’s the opportunity.
2. Local SEO and Google Business Profile
The map pack is where emergency restoration searches convert. Optimizing your Google Business Profile, building genuine review velocity (target 4.7+ stars with 100+ reviews per location), publishing service-area landing pages with city-level intent, and earning local citations is the second pillar. Local SEO compounds — a company that builds it for two years has a moat competitors can’t buy.
3. Google Ads (paid search)
Outside LSAs, paid search on terms like “water damage restoration [city],” “mold remediation,” and “fire damage cleanup” remains a workhorse. Tight match-type discipline, location targeting at the ZIP level, call extensions, and aggressive negative keyword lists are non-negotiable. Without those, Google will happily spend $200 a day on irrelevant queries.
4. Content marketing and SEO
Long-form content does two things at once: it captures top-of-funnel research traffic (“what to do after water damage,” “how to dry out a wet basement”) and it builds the authority signals that move your map pack rankings. The mistake most restorers make is publishing thin 400-word service pages and calling it SEO. Real content marketing means 1,500+ word answers, expert-reviewed posts, original photos, and a publishing cadence the operator can actually sustain.
5. Commercial business development
Commercial restoration is a relationship business that masquerades as a marketing problem. The “marketing” here is structured outreach to property managers, facility directors, REITs, healthcare facilities, and commercial insurance brokers — combined with branded sales collateral, capabilities decks, and a website that looks like a commercial vendor rather than a residential carpet cleaner.
The classic restoration referral playbook is alive and well. Structured plumber programs (with co-branded marketing, fast response promises, and clear referral tracking), insurance agent breakfast meetings, and independent adjuster relationships still produce 20-40% of revenue at most established restoration shops.
7. TPA and carrier preferred vendor programs
Joining programs like Contractor Connection, Code Blue, Sedgwick, Crawford, and Allstate’s preferred vendor lists is its own marketing channel — applications, audits, performance metrics, and ongoing scorecard management. The work is high-volume but margin-compressed, so this channel needs to be planned, not stumbled into.
8. Social media and brand content
Social is mostly a brand and recruiting channel for restoration, not a direct lead channel. LinkedIn for commercial business development, Facebook for community presence and reviews, and Instagram for technician recruiting and culture content. Don’t expect TikTok to fill your truck.
9. Email marketing
Often ignored, email is the cheapest way to stay top of mind with referral partners and past customers. Quarterly newsletter to plumber partners, monthly tips to agents, and seasonal reminders to past customers keep the referral engine warm.
How to allocate the marketing budget
For a restoration company doing $1M to $5M in annual revenue, the typical healthy budget allocation looks like: 35-45% LSAs and Google Ads, 15-20% local SEO and content, 15-20% commercial business development (sales rep cost, collateral, events), 10-15% referral program maintenance, and the rest to brand and recruiting. Companies under $1M should weight more heavily into LSAs and direct response — brand spending before you have the operational base to handle volume is wasted budget.
The KPIs that actually matter
KPIs that actually matter.
Most restoration marketing dashboards track vanity metrics. The numbers that predict whether a marketing program is working are cost per qualified lead (not raw lead — qualified means the customer answered the call and the job has insurance or out-of-pocket budget), lead-to-job conversion rate (industry healthy range is 35-55% for residential, 15-30% for commercial), average ticket by source (LSAs and Google Ads jobs typically run smaller than referral or commercial jobs), and marketing ROI by channel (revenue divided by marketing spend, calculated quarterly).
The 90-day restoration marketing audit
If you inherited a restoration marketing program or you’re not sure where you stand, here’s the audit framework. Pull your last 90 days of leads. Tag each by source. Calculate cost per qualified lead by channel. Calculate revenue produced by channel. Identify the single best-performing channel and the single worst. Cut the worst, double down on the best, and pick one new channel to test for the next quarter. That’s the entire program.
How much should a restoration company spend on marketing?
Healthy restoration marketing spend ranges from 6% to 12% of revenue, depending on growth stage and market competitiveness. Companies in startup or rapid-growth mode often spend 10-15%; mature operators with strong referral pipelines may run as low as 4-6% because referral and TPA channels carry more of the load.
What is the best marketing channel for restoration companies?
For emergency residential work, Local Service Ads typically deliver the best cost per acquired job. For commercial restoration, structured business development to property managers and facility directors outperforms any digital channel. The right answer depends on which side of the business you’re trying to grow.
How long does restoration SEO take to work?
Local SEO and Google Business Profile optimization can move map pack rankings within 60-120 days for less competitive markets. Organic blog content takes 6-12 months to mature and produce consistent traffic. Companies expecting immediate organic results will be disappointed; companies that commit to a 12-month horizon usually see meaningful results.
Are Local Service Ads worth it for restoration?
Yes, in most markets. LSAs typically deliver the lowest cost per acquired customer of any digital channel for emergency restoration services. The exceptions are extremely competitive metros where lead pricing has been bid up significantly, or service areas where Google Guarantee verification is delayed.
Should I hire a restoration marketing agency or do it in-house?
Companies under $2M in revenue typically benefit from a specialized restoration marketing agency that already knows the channels and pitfalls. Companies above $5M often hire an in-house marketing director and use agencies tactically for SEO, paid media, or content. The middle range is the hardest — that’s where most restoration marketing money gets wasted.
What does a restoration marketing plan look like?
A real plan has four components: a channel mix and budget allocation, a 12-month content and publishing calendar, a quarterly business development plan for commercial pipeline, and a measurement framework that tracks cost per qualified lead and revenue per channel. Anything less is a wish list.
Most restoration companies don’t have a sales process. They have an owner who answers the phone, gives a verbal estimate, and hopes the customer says yes. That works until it doesn’t — usually around the $1.5M revenue line, when the owner can no longer touch every job and the company plateaus.
This is the complete restoration sales playbook for both commercial and residential. The processes, the scripts, the objections, the comp plans, the metrics, and the org structure that turn restoration sales from “the owner’s gut” into a scalable engine.
Why restoration sales is different from other home services
Why restoration sales is different from other home services.
Three things make restoration sales unique. First, most customers don’t want to be there — water on the floor, fire damage, mold smell — and the buying experience is emotional, not transactional. Second, insurance is usually the third party in the room, which means the sale has both a customer-facing dimension and a carrier-facing scope-and-pricing dimension. Third, the urgency window is short — a homeowner with three inches of water in the basement is making a decision in the next sixty minutes, not the next sixty days. A sales process built for HVAC replacement or kitchen remodels doesn’t work in this environment.
The residential restoration sales process
The clean residential process has six steps. First, the inbound call or arrival — set the customer at ease, gather the basics, dispatch the truck. Second, the on-site walk and assessment — physically inspect the loss, document with photos and a moisture map, identify scope. Third, the trust-building conversation — explain what’s happening, what the company will do, what the timeline looks like, what the insurance process will involve. Fourth, the work authorization — get the signature on the work authorization form and the AOB (assignment of benefits) where used, with clear scope language. Fifth, the daily progress update — text or call the customer every day with what was done and what’s next. Sixth, the close-out and review request — final walkthrough, signed completion certificate, immediate ask for the Google review.
The commercial restoration sales process
The commercial restoration sales process.
Commercial is fundamentally different — longer sales cycle, multiple stakeholders, RFP and master service agreement structures. The commercial process has eight steps. First, identify and qualify the target (property managers, facility directors, REIT operations teams, healthcare facility managers, hotel chains). Second, cold outreach via email, phone, LinkedIn, or in-person drop-bys. Third, discovery meeting to understand current vendor situation, pain points, and decision criteria. Fourth, capabilities presentation — branded deck, case studies, references, certifications. Fifth, RFP response or vendor application — formal pricing schedules, COI, W-9, MSA negotiation. Sixth, onboarding and first job — usually a small loss to prove the relationship works. Seventh, account management — quarterly business reviews, scorecard tracking, expansion within the account. Eighth, renewal and reference development — turn happy commercial accounts into case studies and references for the next prospect.
The five most common restoration sales objections (and how to handle them)
“I need to call my insurance company first.” This is the most common objection on residential. The honest answer: yes, they should call insurance, but they don’t need to wait for insurance to authorize emergency mitigation. Mitigation is a duty owed by the homeowner under almost every policy, and delaying mitigation usually causes more damage and more denials, not fewer. Explain this calmly, point them to their policy language, and offer to be on the call when they reach the carrier.
“How much is this going to cost?” The wrong answer is a number. The right answer is “it depends on what we find when we open up the affected areas, but I can walk you through how Xactimate pricing works, what your policy typically covers, and what your out-of-pocket exposure is likely to be.” Rebuild trust with transparency, not with an unreliable estimate that you’ll have to retract later.
“My uncle/cousin/neighbor does this kind of work.” Don’t fight it. Acknowledge it, then differentiate: “If they’re certified IICRC and carry the right insurance, that’s great — we’re happy to be the second opinion. If you’d prefer to use them, we still recommend you start mitigation in the next few hours either way.” Sometimes you’ll lose the job. Often the customer will quietly reconsider when they realize what’s actually involved.
“Your competitor quoted me less.” The hidden answer to this objection is almost always scope, not rate. Walk through the scope item by item with the customer. Identify what’s missing in the competitor’s proposal. Explain what gets denied or supplemented later when the carrier reviews. Most price objections in restoration are scope-comparison failures, not pricing failures.
“I want to think about it.” Time is not a luxury in restoration. The honest, professional response: “I understand. The challenge is that every hour we wait, the loss usually gets worse and the carrier may push back on damage that could have been prevented. Can we start emergency mitigation now and you finalize the rest of the scope tomorrow?”
Sales rep compensation: the models that work
Three compensation structures dominate in restoration. Salary plus bonus works for inside sales reps and commercial business development, where the sales cycle is long and the rep needs predictable income. Typical structure: $60K-$90K base plus 1-3% of revenue from accounts they bring in, capped or uncapped depending on territory size. Commission-only works for outside residential sales reps in markets with high enough volume to support it. Typical structure: 5-10% of gross revenue or 10-15% of gross profit, with a draw against commission for the first 90 days. Salary plus team bonus works for production-side sales (project managers who upsell during jobs). Typical structure: production manager salary plus a small percentage of completed job revenue tied to customer satisfaction scores.
The metrics that predict restoration sales performance
The metrics that predict restoration sales performance.
Forget revenue as the primary metric — it’s a lagging indicator. The leading indicators that predict next quarter’s revenue are activity volume (calls made, meetings held, proposals sent), pipeline value (sum of qualified opportunities × probability), conversion rates by stage (lead to qualified, qualified to proposal, proposal to close), average deal size by source, and sales cycle length by deal type. A weekly pipeline review using these five metrics will tell you what’s coming three months out.
When to hire your first sales rep
Most restoration owners hire too late. The right trigger is when you can confidently answer two questions: “do I have a documented sales process I can hand to someone else?” and “do I have enough lead flow to keep a sales rep at 70%+ capacity?” If both are yes and you’re at $1.5M+ in revenue, it’s time. The first sales hire should usually be a residential closer or commercial business development rep, depending on which side of the business has the bigger growth ceiling.
Residential sales reps respond to inbound emergency calls, conduct on-site walks, write scopes, present pricing, secure work authorizations, and manage the customer relationship through completion. Commercial sales reps prospect property managers and facility directors, conduct discovery meetings, deliver capabilities presentations, respond to RFPs, negotiate MSAs, and manage assigned accounts long-term.
How much does a restoration sales rep make?
Residential outside sales reps in restoration typically earn $60K-$120K total compensation, depending on market, lead flow, and commission structure. Commercial business development reps with established books of business often earn $90K-$200K. New hires in their first year usually fall into the $50K-$80K range while building pipeline.
How do you sell commercial restoration services?
Commercial restoration sales is relationship-based business development, not transactional sales. The process: identify target accounts (property managers, facility directors, REITs, healthcare, hospitality), build relationships through outreach and industry events, present capabilities through branded decks and case studies, win small jobs first to prove competence, then expand to MSA-level relationships and preferred vendor status.
What is the close rate for restoration sales?
Healthy close rates by segment: residential emergency leads 40-60% from lead to job; residential planned/estimated work 25-40%; commercial RFPs 15-30%; commercial referral-based opportunities 35-55%. Companies significantly below these ranges usually have a process or speed problem, not a market problem.
Should I hire a restoration sales coach or consultant?
Restoration sales coaching has matured into a real category — there are several specialists who focus exclusively on this industry. Coaching tends to deliver the best ROI for owners who already have lead flow but are struggling with conversion, or for sales reps in their first 12-24 months who need scaffolding on process and objection handling. It’s less useful for foundational issues like lead generation or operational capacity.
How do you train a restoration sales rep?
Effective restoration sales training has four pillars: technical knowledge (water categories, drying science, restoration process, IICRC standards), insurance literacy (policy language, claims process, Xactimate basics, supplements), sales process and scripts (call handling, on-site discovery, scope presentation, objection handling, close), and ride-alongs with the owner or senior rep for the first 60-90 days before independent calls.
Restoration pricing is the most misunderstood part of running a restoration company. Owners argue about Xactimate rates, complain about insurance carriers, and chase competitor pricing — while quietly losing money on jobs they think are profitable. The problem isn’t usually the rates. It’s that most restoration companies don’t actually know what their work costs them.
This guide walks through how restoration pricing actually works in 2026: Xactimate fundamentals, when to use time and material versus fixed bids, where margin leaks happen, what healthy profit margins look like, and the financial math that separates the operators who scale from the ones who stay stuck.
The two pricing systems restoration uses
The two pricing systems restoration actually uses.
Almost all restoration work is priced one of two ways. Xactimate pricing dominates insurance work — line items at published unit rates, with regional pricing that updates quarterly, plus overhead and profit added on top. Time and material (T&M) is used for non-insurance work, certain commercial losses, and emergency mitigation where scope is unknown — billed by labor hour and materials at marked-up cost.
Most restoration companies use both depending on the job. Residential insurance mitigation and reconstruction is almost always Xactimate. Commercial losses with sophisticated buyers often allow T&M or hybrid pricing. Out-of-pocket residential work (mold remediation that isn’t covered, biohazard cleanup, certain reconstruction) is typically T&M or fixed-bid.
How Xactimate pricing actually works
Xactimate is a software platform owned by Verisk that contains a database of construction line items priced by region. Each line item has a labor component, a material component, and an equipment component. Pricing updates quarterly and is based on regional cost surveys. The pricing the carrier sees and the pricing you see should be identical — Xactimate is “single price database” for both sides.
The actual price of a job is the sum of all line items, plus overhead and profit (O&P), typically 10% and 10% (for 21% combined when multiplied), added on top when the job involves three or more trades or specific complexity criteria carriers recognize. Whether O&P is approved is one of the most contested issues in restoration pricing — many carriers and TPAs push back hard, and operators need to know the documentation to defend it.
Time and material pricing
T&M pricing bills labor at an hourly rate and materials at a marked-up cost. Healthy restoration T&M rates in 2026 run $75-$110/hour for technicians, $95-$140/hour for lead technicians, and $135-$195/hour for project managers, depending on market and certification level. Material markup typically runs 25-50% over cost. Equipment rental (dehumidifiers, air movers, HEPA filtration) is billed by day at established rates.
The advantage of T&M is no price disputes — you bill what it actually took. The disadvantage is the customer needs to trust your hours, and you need rigorous time tracking. Without disciplined timekeeping, T&M jobs become arguments about “what could it have possibly taken that long for?”
The two big places margin gets lost
Where margin gets lost — without sticky dollar stickers.
Restoration companies don’t lose margin on the rates — they lose it in two specific places. First, missed scope. The job estimate doesn’t capture all the affected materials. The carrier pays the original estimate. The actual work takes longer and uses more material than estimated. Loss.
Second, weak supplements. When additional damage is discovered (almost always the case in restoration), supplements need to be written, documented, and submitted. Companies with weak estimating and slow supplement processes leave 5-15% of revenue on the table on every insurance job. Companies with disciplined supplement processes capture every dollar of legitimate scope.
Healthy profit margin benchmarks
Industry-healthy gross margins by service line: water mitigation 45-60%, reconstruction 25-40%, mold remediation 50-65%, fire and smoke restoration 35-50%, contents cleaning and pack-out 40-55%, commercial large loss highly variable but generally 20-35%. Net margin (after overhead) for a healthy restoration company runs 8-15% of revenue. Companies under 5% net are usually one bad month away from cash crisis. Companies above 18% are either very small, very specialized, or under-investing in growth.
The job costing discipline most restorers skip
Job costing discipline most restorers skip.
You cannot manage profit margins you can’t measure. Real job costing means tracking, per job: estimated revenue, actual revenue (including supplements), labor hours and dollars actually spent, material costs actually incurred, equipment days and rental cost, subcontractor cost, and overhead allocation. The output is a per-job gross margin number. Pulling this report monthly and identifying jobs that lost money — and why — is how operators improve pricing over time.
Most restoration companies skip this because the data is messy and the spreadsheets are painful. The companies that automate it (with restoration-specific software like Restoration Manager, Xactimate, Encircle, or DASH) have a structural advantage that compounds.
How to handle the “your competitor charges less” objection
This objection appears constantly. The honest answer: most price differences in restoration are scope differences, not rate differences. Xactimate rates are the same across all contractors in a region — your competitor isn’t using a cheaper Xactimate. They’re either writing less scope, missing items that you’d catch, or planning to supplement aggressively later. Walk the customer through the scope comparison line by line. Often the price gap closes or reverses.
Pricing strategy by service line
Water mitigation is almost always Xactimate. The leverage is in writing complete drying chamber configurations, accurate equipment days, and complete demolition scope. Reconstruction is Xactimate with discipline around overhead and profit, change orders, and supplements. Mold remediation can be Xactimate when insurance covers it, T&M or fixed bid when it doesn’t — pricing requires careful scope documentation due to liability. Fire and smoke is Xactimate, with significant supplement opportunity around contents, deodorization, and structural cleaning. Biohazard and trauma cleanup is typically T&M or fixed bid with hazard premiums.
The national average for residential water damage restoration in 2026 ranges from $1,500 for a small Category 1 (clean water) loss to $40,000+ for a large Category 3 (sewage) loss requiring extensive demolition and reconstruction. Most insurance-covered water mitigation jobs fall in the $3,000-$8,000 range. Pricing is calculated using Xactimate line items based on affected square footage, equipment days, demolition scope, and reconstruction needs.
What profit margin should a restoration company make?
Healthy gross margin benchmarks: water mitigation 45-60%, reconstruction 25-40%, mold remediation 50-65%, fire restoration 35-50%, commercial large loss 20-35%. Net margin (after overhead) for a profitable restoration company typically runs 8-15% of revenue. Companies below 5% net margin are at financial risk; companies above 18% are usually small, specialized, or under-investing in growth.
What is overhead and profit in restoration?
Overhead and profit (O&P) is typically a 10% + 10% addition on top of the line-item subtotal in Xactimate, applied when a job involves three or more trades or meets carrier complexity criteria. The 10% overhead covers indirect costs like supervision, office, and equipment depreciation; the 10% profit is the contractor’s profit margin. Whether O&P is approved is frequently disputed by carriers and TPAs, and proper documentation is required to defend it.
Should restoration jobs be priced T&M or Xactimate?
Insurance work is almost always Xactimate because that’s what carriers will adjust to. Out-of-pocket residential work, certain commercial losses, and unscoped emergency mitigation are often better priced as time and material. The dividing line is typically whether a third-party payer (insurance carrier or TPA) is involved.
What is the labor rate for restoration technicians?
Healthy 2026 T&M billing rates: technicians $75-$110/hour, lead technicians $95-$140/hour, project managers $135-$195/hour. These vary by region and certification level. Insurance work uses Xactimate’s regional labor rates rather than billed hourly rates, with the labor component embedded in each line item.
How do restoration companies make more money on jobs?
The two highest-leverage activities are complete initial scoping (capturing every affected material in the original estimate) and disciplined supplementing (writing and submitting supplements promptly when additional damage is discovered). Companies with rigorous estimating and supplement processes capture 5-15% more revenue per insurance job than companies that don’t.
