Why Preparation Is Everything When Selling Your Restoration Company

Preparing your restoration business for sale requires the right financials but also the often overlooked positioning, strategy, and timing.

In today’s M&A landscape, more voices than ever are competing to advise business owners, and one of the most foundational and steady of those is Les Cunningham, founder of Business Networks Inc.

Les has spent more than 55 years helping contractors build profitable, accountable, and high-performing businesses. In our recent conversation, we unpacked the real “secret sauce” of elite operators and how these same principles can dramatically increase the value of your company before you sell.

Why Mastermind Groups Matter for Restoration Business Owners

Many restoration contractors operate in silos. They don’t have trusted peers to talk with about their toughest business challenges. As Les explains, mastermind groups solve this problem by creating structured, confidential environments where owners share openly without competitors in the room.

“A lot of contractors want to be able to talk to somebody, and they can't because they don't trust that the other people are going to tell them the truth. So we've invented a process where we have a meeting in a total trusting relationship and allow people to talk about what they do, but we don't allow geographic competitors in the room.” — Les Cunningham

Benefits of Joining a Mastermind Group like Business Networks

• Real, actionable insights from peers in the same business

• Confidential, structured discussions without local competitors

• Accountability to implement best practices

• Benchmarking against top performers

Photo by Dylan Gillis on Unsplash 

Leveling the Playing Field When Negotiating a Sale

One of the biggest pitfalls owners face when selling is talking to only one buyer—often a private equity group. This gives buyers all the leverage and results in lower offers.

One is a very lonely number when you're a seller. If you talk to just one buyer, they literally have no incentive to give you a top dollar offer. Their incentive is to buy for pennies on the dollar.

Actionable Insight:

Run a structured, competitive sale process which requires:

• Identifying and engaging multiple qualified buyers

• Creating competitive tension

• Setting clear deadlines and benchmarks

• Controlling the narrative with professional representation

📌 Pro Tip: Buyers respect well-prepared sellers. A competitive process can increase valuation by 20–35% on average compared to single-buyer negotiations.

Cutting Through the Noise: Trustworthy Information Wins

In the restoration industry, there’s no shortage of shiny objects like new systems, “game-changing” marketing tactics, or software promising overnight results. But as Les points out, the best insights come from trusted peers and proven practices, not hype.

Mastermind members:

• Visit each other’s businesses to observe operations firsthand

• Compare line-item financials to benchmark performance

• Verify results through real data and site visits

“Talking to other contractors in the business, they find out information they wouldn't get any other way. They can trust, but they also verify what they've been told and really know what's going on in the company.” — Les Cunningham

Benchmarking Key Categories for Profitability

Business Networks Inc. uses a 14-category benchmarking framework to evaluate restoration companies. Members rank themselves line-by-line, identifying exactly where they lag behind top performers.

Typical Benchmark Categories

• Estimating accuracy

• Gross margins

• Project management efficiency

• Labor utilization

• Overhead control

• Marketing ROI

• Customer retention

By opening up financials in a trusted environment, owners see where they can make non-cosmetic, real improvements that drive valuation.

Photo by Dylan Gillis on Unsplash

How Mastermind Members Accelerate Growth Before Exit

Les notes that most members see meaningful growth momentum within one to two years. Mastermind groups meet twice annually for 3.5-day intensive sessions, “like drinking from a firehose” and stay connected between meetings via private online platforms.

Why This Matters for a Future Sale

• Higher EBITDA margins directly increase business valuation multiples

• Better systems and documentation reduce due diligence friction

• Operational consistency makes your company more attractive to buyers

Timeless Principles Don’t Change, Even in a Fast-Moving Industry

Les has been in the industry for 55 years. He’s seen countless trends come and go. But the core principles of business remain the same:

• Make a profit

• Treat employees well

• Deliver quality work

• Build trust with customers

“Some basic principles of business never change. You've got to make a profit. You've got to treat your employees well. Those things, they don't change.” — Les Cunningham

📌 Pro Tip: Buyers value stability and consistency. Focusing on timeless principles makes your business attractive not just today, but decades from now.

Quick-Check FAQs

❓ How long should I prepare my restoration business before selling?

Ideally, have your exit plan in mind as soon as possible. Begin active preparation 12–24 months before going to market. This allows time to optimize operations, financials, and documentation.

❓ Can joining a mastermind group really increase my valuation?

Access to peer benchmarks and proven systems often improves profitability and operational efficiency, both of which drive higher valuations.

❓ Do I need multiple buyers when selling?

A competitive sale process ensures leverage, transparency, and often higher offers.

Ready to Build a More Valuable Business?

Join a Business Networks mastermind group and surround yourself with the top restoration contractors in North America. Learn proven strategies, benchmark your performance, and prepare your company for a premium exit.

👉 Learn More & Join Business Networks »