Industries we serve
Construction & Contracting
General contractors, specialty subcontractors, excavation and site work firms — project-based businesses where backlog and bonding drive the conversation.
Overview
Selling in Construction & contracting
Construction companies are valued differently from most small businesses because their earnings are lumpy by nature. One large project can flatter a year; one bad one can erase it. Buyers and lenders look through the cycle, at margin discipline and at who actually wins the work.
The critical question in nearly every construction deal is whether the relationships transfer. If the owner is the estimator, the salesperson, and the face to every general contractor, the business is harder to sell — and that is fixable with time.
Valuation
How these businesses are valued
Contractors typically trade at lower multiples than recurring-revenue service businesses, because backlog runs out and margins swing with the cycle. Firms with negotiated repeat work, service divisions, or maintenance contracts alongside project work price meaningfully better than pure hard-bid shops.
What raises the number
- A service or maintenance division producing steady revenue
- Reliable job-costing data buyers can trust
- Established bonding capacity that can carry forward
- Estimating handled by staff, not solely the owner
What holds it back
- Thin or empty backlog at the time of sale
- Margin driven by one or two outlier projects
- Owner-held relationships with every major customer
- Open claims, liens, or warranty disputes
Ranges and drivers described here are general guidance, not an appraisal. A valuation consultation prices your specific business on its own recast financials.
Deal considerations
What comes up in these transactions
Work in progress schedule
A current WIP schedule showing costs to date, billings, and estimated cost to complete is the first document a serious buyer asks for.
Bonding and insurance
Surety and carrier relationships do not transfer automatically. Introducing the buyer to those parties early prevents a late surprise.
Retainage and receivables
Retainage held on completed jobs is negotiated explicitly, since it often represents a meaningful sum owed after closing.
Licensing and prequalification
Municipal and DOT prequalifications may need to be reestablished under new ownership; the timeline is built into the closing plan.
Available now
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Start with a confidential conversation
No cost, no obligation, and nothing leaves the room. Tell us where you are and we will tell you honestly what the next step looks like.