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

Q: What are the profit margins for a Fireproofing Contractor?

The average profit margin for a Fireproofing Contractor is around 18%. 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.

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

Strong

Avg Revenue

$1.8M

Profit Margin

18%

Acquisition Multiple

2.2x - 5x

Startup Cost

$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.

Revenue Range

Low End

$500K

Typical

$1.8M

High End

$9.0M

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.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-32402/mo

after debt service

Deal price — $5.8M

Range: $3.1M (2.2×) to $10.8M (5×+)

Down payment — 15% ($864K)

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

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

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

Down payment

$864K

15% equity injection

Loan amount

$4.9M

85% SBA-financed

Monthly payment

$59K/mo

$2.2M total interest

Monthly profit

$27K/mo

at 18% margin

Monthly cash flow after debt service

$-32402/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.