How Do I Sell My Construction Business?
A construction business can be a profitable business, but for every construction business owner, there’s a time to retire at some point. When that time comes, you want to make sure that you get the most out of the construction business you have worked so hard to build. With the right approach and the proper support, you can sell a construction company for a great value in almost any market.
How to Sell a Construction Company
There’s no sure way to know how fast you will sell your construction company, but following the steps below will give you a better chance of selling quickly and at the value you want.
The first question I would be asking about is how to price my construction business. Before you can get the best value for your construction business, you need to know how much it is worth. Your company’s value on the simplest level is your assets minus your liabilities, but there are other features and aspects of your business that could give it more value, such as the company’s annual income, the company’s customers, and the company’s growth prospects.
Your best approach is to have a professional evaluator look over your business and put an estimate on how much your construction company is worth. You can use this unbiased estimate to help maximize value when you are negotiating.
Next, clean up. Just like I’m going to clean up my house before I try to sell it. Before I try to sell my building company, I’m going to make sure it looks as appealing as possible. Make sure all the financials are understandable and transparent to any prospective buyer and do what you can to maximize value. A Business Broker can guide you with this. If you can pay off any debt or bring in more jobs and income before the prospective sale, all the better. This is why it is best to sell before you lose the personal investment in the business.
It’s also essential to make it about the business, not about you. One difficulty with construction businesses is that they can tend to be based mostly around the owner. You have been involved with every part of your business from day one; now, it is time to remove yourself from the continuous operation and enjoy retirement. Some construction business owners often aren’t afraid to get their hands dirty, which can be a blessing and a curse.
Ask yourself honestly if your business could get along just fine without you. If you struggle to answer this question, your potential buyers will probably see it. Make sure your business is strong enough to run on its own before trying to sell unless you’re planning on staying on board after the sale goes through.
Finally, if you want to sell your construction business fast and get great value, get in touch with a professional business broker. Business brokers connect sellers of companies with buyers of these types of companies, helping both sides get what they want out of the transaction.
It’s crucial that you hire not just any business broker, but one with specific experience with construction so they can avoid some of the pitfalls that construction business sellers can make and take advantage of the best features of your construction business to maximize your sale value.
How Do I Sell My Construction Business Online With Construction Business Brokers?
For construction businesses on the East Coast and beyond with annual revenues between $700,000 and $40 million, the answer is Synergy Business Brokers. We have built up relationships with owners of construction businesses looking to buy or sell construction companies. We have experts in a wide range of construction businesses and are confident we can sell your business fast and at a great price.
Below are some case studies of some of the construction industry and contractor businesses we have sold:
Roofing, Siding & General Contractor Business
(Marcellino Roofing) This successful business did roofing and other home improvements. The owner was interested in retiring and relocating. The seller was speaking to a buyer that was taking a long time to consummate a deal. We set up a meeting with a new buyer, and the deal was closed in a record time of a month from the initial introduction of the buyer and seller.
Commercial HVAC Company in Middlesex County
(LMC) Installation & Service of Heating, Ventilation, and Air Conditioning systems for commercial and some residential customers. They also provide energy rating services for their customers to use energy more efficiently. They also offer installation of solar and geothermal systems. We were able to introduce a buyer within a week and close the deal in 3 months.
Land Surveyor Business in New York City
(Lovell Belcher) The owners were ready to retire after building up a great business. We were able to introduce two Land Surveyor companies that were interested in the business. Because we had multiple buyers, we were able to sell the business for the full asking price.
Concrete Pumping Business
They provide Residential and Commercial Concrete pumping for foundations, floors, walls, and more. The owner was ready to retire. Our marketing led to multiple offers, and we negotiated terms, and the buyer was able to secure bank financing.
Flooring Distribution Business on Long Island
They sell and distribute carpet & flooring products to tradesmen and designers. They initially hired another brokerage firm that charged an upfront fee that was unable to sell their business. After their 6 month period expired, the seller contacted us, and we committed to market and advertise his business with no upfront fee. We had several interested potential buyers and were able to get an accepted offer relatively quickly. When the initial buyer didn't move quickly to complete the deal, we contacted other potential buyers and were able to sell the business within six months of taking the assignment. The second buyer owned a Kitchen & Bath business that was located near the seller's company, so both the buyer and seller felt it was a good fit.
Spray Foam Insulation Company in the Finger Lakes Region of NY (outside of Rochester)
They provide energy star insulation for their customers, saving them money on their Heating and Air Conditioning bills. We located a buyer that did not need bank financing and was able to pay over 80% of the purchase price at the closing with the seller financing the balance.
Kitchen & Bath Business
They sell and install Kitchen & Bath fixtures, tiles, etc. We were able to locate several buyers both within the industry and outside the industry, and the purchaser ended up being someone from outside the industry.
Environmental Remediation Company
They specialize in soil excavation, removal and replacement; mold inspection and environmental remediation; and tank removal and installation. We located multiple potential buyers and negotiated terms that worked for buyer and seller.
Energy Conservation, Certification & Analysis firm in Middlesex County, MA
They analyze how to cost-effectively reduce energy costs with testing, building code verification, and certification services, including LEED certifications, Energy Star, Green Building requirements, thermal imaging analysis, and more. Provided services to architects, general contractors, remodelers, HVAC contractors, as well as homeowners. We set up meetings with multiple potential buyers, and the initial best offer came in slightly under the asking price. The buyer was willing to raise his proposal to the full asking price and was able to get SBA financing for the purchase.
Engineering Business in Bergen County, NJ
(AAES Engineering, Inc.) The majority owner of the engineering business was ready to transition into retirement, and the minority partner was only 50. They decided to sell the business and have the minority owner work for the new acquiring company. We introduced potential buyers and received multiple offers on the business. The best offer was from a large construction company that wanted to expand their capabilities to provide engineering services. The Buyer provided an employment agreement for the minority partner and terms of the deal that satisfied all parties.
Interior Design Business
(By the Yard) They provided in-home consultations for interior design and installation and service. We found a buyer that had experience in the business that wanted to expand.
Closet & Storage Design, Manufacturing and Installation Business in Fairfield County, CT
(CT Closets) We located several potentially interested buyers, and the best offer came from an overseas buyer in Europe that wanted to live in the United States with the purchase of a business under the E-2 Visa program. The buyer was able to realize their dream of living in the US, and the seller will help them with a transition before they begin the new chapter in their life.
Interior Design & Construction firm for Residential Homes & Apartments
The owner of this interior design company contacted us to get an idea of the process of selling the business even though they weren't quite ready to retire. After they thought about for a while, they decided to engage us to sell their business with the idea that they would stay on and work with the buyer for several years as a transition into retirement. We introduced a buyer that got along well with the seller. They were confident that it would be a great working relationship, and the seller provided some financing so the buyer could pay some of the sale price over time.
Buying a Construction Company
If you are interested in purchasing a construction business, you can view our construction businesses for sale at Construction Businesses for Sale. We have over 16 years of experience in Construction Mergers & Acquisitions.
Selling a Construction Company
To speak to us about how we can sell your contractor/construction business, please let us know. We do not charge an upfront cost, but a percentage. This way, we only profit if you do. To find out more, contact us for a private consultation at 888-750-5950 or, if you prefer, email us at [email protected] or fill out and submit our simple online form. We have experience selling both exterior and interior construction companies.