How much does a Firestop Special Inspection cost to buy?

A typical Firestop Special Inspection sells for 2x to 4.8x seller's discretionary earnings. With estimated SDE of $176K, expect to pay roughly $353K to $847K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Firestop Special Inspection?

Startup costs range from $15K to $110K depending on location, equipment, and scale.

Service

Firestop Special Inspection

Code officials need proof every wall penetration was sealed correctly

Bottom line

Attractive margins, but operations need a serious buyer.

Firestop special inspection firms inspect, photograph, test, and document fire-resistance-rated wall and floor penetrations in hospitals, labs, apartments, schools, data centers, and commercial construction projects. The surprising angle is that the installer is often not allowed to self-certify: owners and building officials need third-party documentation before occupancy, so the inspection becomes a schedule-critical compliance line item.

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Acquisition score

Margin · multiple · SBA data

68Strong

Avg revenue

$420K/yr

$120K–$1.4M range

Profit margin

42%

~$176K SDE

Multiple

2–4.8×

of SDE

Est. buy price

$353K–$847K

startup: $15K–$110K

How It Works

Inspectors review drawings and submittals, walk job sites, verify listed firestop systems, photograph penetrations, flag deficiencies, re-inspect repairs, and issue reports for owners, GCs, and authorities having jurisdiction. Revenue comes from project inspection fees, hourly re-inspections, consulting, documentation packages, and repeat GC or healthcare-facility relationships.

BizBite verdict

Watch / verify

Firestop Special Inspection 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.

68Strong

low data confidence · 40/100medium financing fit

Why it may work

+Attractive 42% estimated margin profile

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 $176K SDE — can this deal service its own debt?

2.14×

DSCR · Lender-comfortable

Purchase multiple — 3.2× SDE ($565K)

Category range: 2×–4.8× SDE

Down payment — 10% ($57K)

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

$565K

3.2× of $176K SDE

Cash to close

$73K

$57K down + ~3% closing

Debt service

$7K/mo

$82K/yr on $509K loan

Cash-on-cash

128%

cash back in ~10 mo

Debt service coverage · what the lender sees

2.14×+$8K/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

+Compliance-driven demand tied to occupancy approvals
+Asset-light professional service with strong gross margins
+Repeat relationships with GCs, hospitals, labs, and fire-protection contractors
+Deficiency re-inspections create natural follow-on revenue

Cons

-Requires code knowledge and inspection credibility
-Construction schedules can create deadline pressure
-Liability is real if reports are sloppy or incomplete

Best For

Fire-protection professionals, code consultants, inspectors, and operators comfortable selling to GCs and facility owners

Operating Costs

Costs include inspector training/certifications, liability insurance, reporting software, tablets, travel, and sales time with contractors. Margin improves when reports are standardized and inspectors batch multiple projects in dense metros.