SELLING, WITH CLARITY
Selling a construction company requires more than presenting last year’s revenue. A buyer needs to understand live projects, the quality of backlog and the team responsible for completing the work.
Start a confidential conversationWHAT A BUYER NEEDS TO UNDERSTAND
Separate contracted projects, bids and informal opportunities. For active jobs, record the remaining scope, estimated cost to complete and expected billing. Explain changes and disputes honestly rather than treating the full contract price as future profit.
Work with your accountant to explain work in progress, progress payments, deposits and holdbacks. Identify how project results are recorded and how year-end balances relate to the job schedule. The proposed transaction needs to address open projects explicitly.
Describe who wins tenders, manages customers and coordinates subcontractors. A buyer may assess concentration by client, project type or referral source. Prepare a transition plan for relationships that currently depend on you.
Document estimating, project management, site supervision and purchasing. Ask your advisors about contract consents, bonding, insurance, employment and operating requirements relevant to your company. A sale plan should recognise those dependencies early.
PREPARING FOR A SALE
Use this as a preparation checklist. An initial inquiry only needs your contact details and a brief introduction; keep sensitive records for a later, agreed review.
Explore business valuationA LITTLE MORE CLARITY
It can be explored, but the treatment of live contracts, payment obligations, warranties and completion responsibilities needs to be negotiated and documented. Your legal and accounting advisors should be involved early.
Backlog needs to be assessed for expected margin, capacity, cancellation terms, collection risk and the work remaining. A large headline total is not a substitute for supported project economics.
BEFORE THE NEXT CHAPTER
Practical reading for owners thinking about what comes next.
YOUR NEXT CHAPTER STARTS HERE
Start with a confidential conversation about selling your business. A few details are all we need to begin.
A confidential first conversation
Space to explore your options
No commitment to list your business