Franchise restoration business, TPA held by entity, IICRC-certified staff, AR under 55 days
§ 01 · Observed
What was documented in diligence.
TPA program documentation confirmed: both Alacrity and Contractor Connection memberships are entity-registered; franchisor confirmed transferability without re-qualification for qualified buyers. IICRC certifications: 3 technicians certified in WRT and ASD — owner holds no unique certification. AR aging: current balance $218,000 with 91% under 60 days; disputed claims under 4% of AR. Supplement settlement rate: 83% of requested amounts settled, confirmed against trailing 12-month billing records. Franchise royalty (6% gross revenue) included in cost structure. P&L reconciled to bank deposits — accrual-cash gap 7% on trailing 12 months.
§ 02 · Outcome
What happened.
Signed at 4.0× SDE. Lender DSCR 1.28× on cash-basis SDE. Franchisor approved transfer. Closed without repricing.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Upper-band placement driven by entity-registered TPA access, IICRC staff certification independent of owner, and AR quality within the sub-60-day benchmark. The franchise transfer without re-qualification removed the most common closing-condition risk in the restoration vertical.
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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