How much does a Fireproofing Contractor cost to buy?

A typical Fireproofing Contractor sells for 2.2x to 5x seller's discretionary earnings. With estimated SDE of $324K, expect to pay roughly $713K to $1.6M before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Fireproofing Contractor?

Startup costs range from $80K to $600K depending on location, equipment, and scale.

Service

Fireproofing Contractor

Spraying code compliance onto steel before the walls close

Bottom line

Worth studying, but do not buy without strong local proof.

Fireproofing contractors apply spray-applied fire-resistive material, intumescent coatings, and firestopping systems to commercial buildings so structural steel, penetrations, and assemblies meet code. The niche is hidden inside construction budgets, but it can be lucrative because inspections, schedules, and certificates force the work to happen before occupancy.

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Acquisition score

Margin · multiple · SBA data

52Strong

Avg revenue

$1.8M/yr

$500K–$9M range

Profit margin

18%

~$324K SDE

Multiple

2.2–5×

of SDE

Est. buy price

$713K–$1.6M

startup: $80K–$600K

How It Works

Crews bid commercial projects, prepare substrates, spray fireproofing, install firestop systems, patch damaged material, coordinate inspections, and provide documentation to general contractors, owners, and code officials. Revenue is project-based with repeat GC relationships and remediation work.

BizBite verdict

Watch / verify

Fireproofing Contractor has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

52Strong

low data confidence · 40/100medium financing fit

Why it may work

No strong positives yet. More verified data needed.

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No SBA category enrichment yet
!No category operating model yet
!Low data confidence

Deal Calculator

Priced off $324K SDE — can this deal service its own debt?

2.15×

DSCR · Lender-comfortable

Purchase multiple — 3.2× SDE ($1.0M)

Category range: 2.2×–5× SDE

Down payment — 10% ($104K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 10.50%

Typical SBA 7(a) range: 9.5–12% (prime-based)

Loan term — 10 years

Standard SBA 7(a): 10 years for business acquisition

Purchase price

$1.0M

3.2× of $324K SDE

Cash to close

$135K

$104K down + ~3% closing

Debt service

$13K/mo

$151K/yr on $932K loan

Cash-on-cash

129%

cash back in ~10 mo

Debt service coverage · what the lender sees

2.15×+$14K/mo after debt

Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

+Code-driven demand on commercial construction projects
+Specialized certifications and inspection knowledge create barriers
+Repeat GC relationships can feed steady bid invites
+Change orders and patch work add margin upside

Cons

-Construction cycles can swing backlog
-Labor, safety, and jobsite coordination are demanding
-Receivables and retainage can tie up cash

Best For

Construction-service operators who understand commercial bidding, crews, safety, and GC relationships

Operating Costs

Costs include trained crews, sprayers, compressors, lifts, PPE, material, bonding, insurance, jobsite supervision, and working capital for receivables. Profit depends on estimating discipline and avoiding rework after failed inspections.