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BIZBITE

Industrial Refractory Repair

Factories pay quickly when the furnace lining starts failing

Bottom line

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

Industrial refractory repair companies install and repair heat-resistant linings inside boilers, kilns, furnaces, thermal oxidizers, incinerators, and metal-processing equipment. The work is boring but critical: when refractory fails, plants lose production, energy efficiency, and safety. That urgency supports premium shutdown work, annual maintenance contracts, and long relationships with industrial customers.

Acquisition score
Margin · multiple · SBA data
54Strong
Avg revenue
$1.2M/yr
$350K–$5M range
Profit margin
24%
~$288K SDE
Multiple
2.2–5.5×
of SDE
Est. buy price
$634K–$1.6M
startup: $75K–$400K

How It Works

Crews inspect hot-side equipment during planned outages, remove failed refractory, install castable, brick, ceramic fiber, anchors, and insulation, then cure and document the repair. Revenue comes from emergency repairs, scheduled shutdowns, new linings, inspections, materials markup, and broader mechanical service work.

BizBite verdict

Watch / verify

Industrial Refractory Repair 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.

54Strong
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 $288K SDE — can this deal service its own debt?

1.96×
DSCR · Lender-comfortable
Purchase multiple — 3.5× SDE ($1.0M)
Category range: 2.2×–5.5× SDE
Down payment — 10% ($101K)
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
3.5× of $288K SDE
Cash to close
$131K
$101K down + ~3% closing
Debt service
$12K/mo
$147K/yr on $909K loan
Cash-on-cash
107%
cash back in ~12 mo
Debt service coverage · what the lender sees
1.96×+$12K/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

  • +Downtime is expensive, so customers value speed and reliability
  • +Specialized labor and safety requirements limit casual competition
  • +Annual outage schedules create repeat work
  • +Materials markup and adjacent mechanical repairs add upside

Cons

  • -Technically demanding and safety-sensitive
  • -Work can be lumpy around plant shutdowns
  • -Skilled refractory technicians are hard to recruit

Best For

Industrial maintenance, mechanical contracting, or specialty-trade buyers comfortable with safety-heavy B2B work

Operating Costs

Costs include refractory materials, mixers, pumps, scaffolding, PPE, vehicles, certified labor, insurance, safety training, and travel. Margins improve when crews own customer outage calendars and bundle inspection, repair, and materials supply.

Where to Buy

Keith Company - Refractory Installations

Industry operator describing refractory repair for industrial furnaces, kilns, oxidizers, incinerators, burners, and controls

JT Thorpe - Refractory

Large refractory contractor example serving heavy industrial customers

BizBuySell - Industrial Services

Marketplace for industrial maintenance, mechanical contractor, and specialty trade acquisition comps

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Buy a industrial refractory repair
via Keith Company - Refractory Installations
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