How much does a Basement Waterproofing cost to buy?

A typical Basement Waterproofing sells for 2x to 3.5x annual revenue. With average revenue of $700K, expect to pay $1.4M to $2.5M.

How much does it cost to start a Basement Waterproofing?

Startup costs range from $15K to $80K depending on location, equipment, and scale.

Service

/100 score

Strong

Basement Waterproofing

Q: What are the profit margins for a Basement Waterproofing?

The average profit margin for a Basement Waterproofing is around 22%. Labor is the dominant cost (30–40% of revenue). Materials (drain tile, sump pumps, waterproofing membranes) run 15–25%. Lead generation 10–15%. Net profit margins typically 15–25% for established operators. Owner-operators report $50K–$150K annual income at $500K–$1M revenue.

Wet basements are everywhere. Qualified fixers are not.

Basement waterproofing companies solve one of the most feared homeowner problems: water intrusion. Services range from interior drain tile systems and sump pump installation to exterior excavation and crack injection. Profit margins are attractive because homeowners treat this as an emergency, not a price-shop situation. A single French drain installation can run $5,000–$15,000.

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Avg Revenue

$700K

Profit Margin

22%

Acquisition Multiple

2x - 3.5x

Startup Cost

$15K - $80K

Difficulty

3/5

How It Works

Technicians diagnose water entry points (cracks, hydrostatic pressure, grading), then install solutions: interior drain tile systems, sump pumps, wall anchors, vapor barriers, or exterior waterproof membranes. Average job ticket: $5,000–$12,000. Many operators add annual maintenance plans to build recurring revenue. Leads come from Google Local Services Ads, HomeAdvisor, and insurance adjuster referrals.

Revenue Range

Low End

$300K

Typical

$700K

High End

$2.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 238990 · All Other Specialty Trade Contractors

Deals tracked

692

261 in last 24 mo

Median loan

$664K

$304K–$1.7M p25/p75

Implied deal size

$781K

median · ~85% LTV

Charge-off rate

5.1%

of loans that finished

Deal Size Distribution

<$150K

$150K–500K

207

$500K–1M

151

$1M–2M

123

>$2M

147

Deal Flow Over Time

Deals per year · median loan

$616K

2020

$550K

2021

105

$671K

2022

$808K

2023

$709K

2024

134

$595K

2025

175

$1.2M

2026

12-month momentum

-35.8%

deal volume vs prior 12 mo

Median loan Δ

+47.1%

102 recent · 159 prior

Financing Profile

Median rate

9.50%

21% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

98%

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company107

The Huntington National Bank98

Old National Bank27

First Internet Bank of Indiana19

Brookline Bank, a Division of Beacon Bank and Trust18

Where deals happen

FL105

TX49

CA48

MN38

PA29

CO29

NC28

IL26

WI25

NY22

Franchise vs independent

Franchised acquisitions finance at $614K median vs $675K for independents — a -9% franchise discount. Franchises make up 9% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Dec 2025	SC	$3.0M	$3.6M	30	—
Dec 2025	SC	$500K	$588K	30	—
Dec 2025	FL	$5.0M	$5.9M	18	—
Dec 2025	WA	$1.1M	$1.4M	10	—
Dec 2025	FL	$150K	$177K	8	—
Dec 2025	FL	$891K	$1.0M	8	—
Dec 2025	NV	$4.0M	$4.7M	2	—
Dec 2025	NV	$250K	$294K	2	—
Dec 2025	TX	$500K	$588K	20	—
Dec 2025	TX	$2.9M	$3.4M	20	—

Volume rank #6/534Deal-size rank #281/534Momentum rank #194p90 loan: $2.8MData as of Dec 2025

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+High average ticket — $5K–$15K per job is common
+Emotional purchase: homeowners don't shop price aggressively
+Recurring revenue from sump pump monitoring and maintenance plans
+Insurance and home-sale transactions generate steady demand
+Fragmented market — most competitors are small local operators

Cons

-Physically demanding excavation work
-Seasonal in northern climates — demand peaks in spring/fall
-Lead generation costs can be high (Google LSA, HomeAdvisor)
-Licensing requirements vary significantly by state

Best For

Operators in the Midwest or Northeast where aging housing stock and heavy spring rain create chronic basement moisture problems; also attractive for private equity rollups

Operating Costs

Labor is the dominant cost (30–40% of revenue). Materials (drain tile, sump pumps, waterproofing membranes) run 15–25%. Lead generation 10–15%. Net profit margins typically 15–25% for established operators. Owner-operators report $50K–$150K annual income at $500K–$1M revenue.

SBA Financing Estimator

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

+$1K/mo

after debt service

Deal price — $1.1M

Range: $1.1M (2×) to $3.1M (3.5×+)

Down payment — 15% ($158K)

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

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$158K

15% equity injection

Loan amount

$893K

85% SBA-financed

Monthly payment

$12K/mo

$493K total interest

Monthly profit

$13K/mo

at 22% margin

Monthly cash flow after debt service

+$1K/mo

Down payment paid back in ~123 months — long horizon

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.