THe Modern Contractor – Episode 9

A Chapter 7 is a total liquidation, not a reorganization. The Renovo collapse wasn't a restructuring — assets were sold off, leaving homeowners and the industry exposed.

High-profile failures are a black eye the whole industry has to overcome. One collapse erodes homeowner trust, so it's reasonable for everyone to be a bit more cautious and transparent.

Vet your buyer by talking to sellers who came before you. Before selling to a PE firm, the best diligence is calling other owners who already sold to them.

Growing too fast is a real risk. Rapid growth funded by customer deposits works only while sales stay strong; when they dip, those deposits become liabilities you can't service.

Customer deposits are a hidden long-term liability. Money taken up front for work not yet done can quietly become the thing that sinks a fast-growing business.

Lenders are effectively underwriting your whole operation. Big lenders scrutinize your processes, tech, and stability — so run the business as if it's always in diligence.

Build to sell with strong systems. A business grows and sells on scalable, repeatable processes plus solid tech, lending, and marketing packages; simplicity that scales is the goal.