How Do I Sell My Contracting Business?
The construction business can be a lucrative world, but it can also be a taxing one. You have many employees and materials to keep track of all the time, scheduling deadlines to meet and cost overruns to look out for. If you’ve managed to build a successful contracting business, when it’s time to sell, you want to get the best possible price for all the work you’ve done to get the business where it is. So you may ask, “how can I sell my contractor business to maximize my profit?”
Step One: Hire the Right Contracting Business Broker
A good contracting business broker can help you resolve a lot of the headaches that come with trying to sell a construction business and help you sell much faster.
They will help you to complete the next steps in selling your business and at Synergy Business Brokers we do not have an upfront cost because we believe we should only make money once we sell your business. We have experience selling a variety of contracting businesses that have annual revenues of $600,000 to $30million including contractors that specialize in: HVAC, Landscaping, Roofing, Energy Reduction Analysis, Spray Foam Insulation, Environmental Remediation, Underground Tank Removal, Water Treatment, Concrete Foundations, and more.
Step Two: Know the Company’s Value
You can’t get the most value from your contracting business if you don’t know what that value is. You can add up all your assets and subtract your debts, but you may be missing some intangibles, such as the state of the housing market or the reputation you have built, that can drive up the price considerably. A professional contracting business broker can help you generate a good starting asking price by providing a valuation of opinion.
A professional evaluator can consider the intangibles beyond your assets and debts. They may be able to determine the value of repeat customers, your employees' skills, and the neighborhoods your company has access to and has built relationships with. This can all add up to a big number that you can use to set the price when negotiating with buyers.
Step Three: Make Sure the Financials Are Clean
If you’ve been putting off making sure all the financial records are in place and accurate, now is the time to take care of it. Potential buyers will want to see a clear record of assets, debts and other financial information. Even though everything you are doing may be aboveboard, if the financials don’t look right, it could cause potential buyers to be suspicious.
If there are any issues that may give buyers pause, such as the hiring of undocumented workers, don’t try to hide it. Take care of it before the sale and be honest about it with buyers.
Sell My Contracting Business in New York, New Jersey, Pennsylvania and Throughout the East Coast and Beyond With Synergy Business Brokers
When you hire a business broker, you want to be sure to hire one with specific experience in the world of construction. Throughout the East Coast, in places like New York, New Jersey, Connecticut, Massachusetts and beyond, that broker is Synergy Business Brokers. We help owners sell businesses with annual revenues ranging from $600,000 to $30 million, and we specialize in industries like manufacturing, IT and construction.