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 move on. 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 right support, you can absolutely sell a construction company for 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 greater value, such as the company’s annual income, the company’s customers and the company’s future prospects.
Your best approach is to have a professional evaluator look over your business and put a number 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 comprehensible 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 personal investment in the business.
It’s also important 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 really want to sell your construction business fast and get great value, get in touch with a professional business broker. Business brokers connect sellers of businesses with buyers of these types of businesses, helping both sides get what they want out of the transaction.
It’s important 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 with annual revenues between $600,000 and $30 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) 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 week from the initial introduction of 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 provide 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 a number of 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 6 months of taking the assignment. The second buyer owned a Kitchen & Bath business that was located near the seller's company so both buyer and seller felt it was a very 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 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 offer to 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 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
We located a number of 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 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.
If you are interested in buying a business in the construction industry you can view our construction businesses for sale (along with all of our businesses for sale) at Businesses for Sale.
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, just contact us for a private consultation at 914-738-9350 or, if you prefer, email us at firstname.lastname@example.org or fill out and submit our simple online form.