How much does a Fire & Smoke Damage Restoration cost to buy?

A typical Fire & Smoke Damage Restoration sells for 2x to 4x annual revenue. With average revenue of $1.5M, expect to pay $3.0M to $6.0M.

How much does it cost to start a Fire & Smoke Damage Restoration?

Startup costs range from $80K to $350K depending on location, equipment, and scale.

Service

Fire & Smoke Damage Restoration

Q: What are the profit margins for a Fire & Smoke Damage Restoration?

The average profit margin for a Fire & Smoke Damage Restoration is around 28%. Major costs: restoration equipment (air scrubbers, thermal foggers, HEPA vacuums), vehicle fleet, Xactimate licensing ($200/mo), subcontractor reconstruction costs, and IICRC certification for crew.

The highest ticket call a homeowner will ever make

Fire damage restoration companies clean, deodorize, and rebuild properties after fires — typically billing $20,000–$120,000 per job through homeowner insurance. Average job takes 2–8 weeks. Unlike water damage, fire restoration commands premium rates because the work is more complex (soot, structural, odor elimination) and the insurance payout is typically larger. A two-truck operation can generate $1–3M in annual revenue.

Share on X Share on LinkedIn

Avg Revenue

$1.5M

Profit Margin

28%

Acquisition Multiple

2x - 4x

Startup Cost

$80K - $350K

Difficulty

4/5

How It Works

When a fire occurs, homeowners call their insurer and a restoration company (often referred by the adjuster or found on Google). You arrive within hours, scope the damage, and submit a detailed estimate via Xactimate (the industry-standard billing software). Work includes debris removal, soot and smoke cleaning, odor treatment (thermal fogging, ozone), structural drying, and full reconstruction. Insurance pays you directly or releases funds from escrow.

Revenue Range

Low End

$500K

Typical

$1.5M

High End

$4.0M

Pros

+Insurance pays — customers rarely negotiate price
+Massive job sizes ($20K–$120K average) with few customers needed
+24/7 emergency response creates first-mover advantage at the job site
+Repeat insurer relationships generate steady referral flow

Cons

-Significant upfront equipment investment required
-Insurance billing (Xactimate) has a steep learning curve
-Emotionally intense work — clients are in crisis
-Payment cycles from insurers can be 60–90 days

Best For

Operators with construction or emergency services background and strong project management

Operating Costs

Major costs: restoration equipment (air scrubbers, thermal foggers, HEPA vacuums), vehicle fleet, Xactimate licensing ($200/mo), subcontractor reconstruction costs, and IICRC certification for crew.