The contracting sector is a crucial significant economic engine, creating billions in value and offering millions of job opportunities. However, this industry can be challenging whether you own a smaller local firm or a large, multinational company. Operating a modern contracting company necessitates mastery of various moving parts. Servicing clients, handling cost delays and overruns, sourcing deals, and workforce management can significantly challenge even the shrewdest owner.
For business owners who have worked and navigated those problems, exiting the business on their terms is the optimum reward. However, this also has its risks. If you are looking to get a sales timeline that works for everyone and at the best possible price, it is critical to carry out your due diligence in advance.
Selling a Contracting Business
There are different forms of contracting business, including HVAC, foundation specialists, new constructions, roofers, energy and water technicians, and home improvement. However, regardless of the type of contractor, the fundamentals of a successful business sale are the same. Having this in mind, let’s look closely at the major steps to take when looking for a contracting business sale.
Establish an Accurate Value for Your Contracting Company
An accurate evaluation of a contracting business’s value goes above a simple asset tallying and liabilities and debts subtraction. Numerous other attributes significantly influence valuations, including the current market dynamics, the firm’s reputational value, and other finely tuned evaluations.
It is difficult for most contracting company owners to accurately make this calculation as they do not have the experience and required market context. Actually, many owners do not know the fundamental attributes of the assessment to focus on. In such cases, you risk establishing an imbalance in the potential buyers’ favor, and you will lose well-deserved money.
Partnering with professional business brokers can assist contractors in ensuring that they get fair and full value for their business. A broker holds sophisticated knowledge of local market dynamics and the experience and skill for creating a well-informed valuation model. This assessment accounts for intangible values and hard data like repeat customer value, reputation, and employee skills. Considering these factors can play an important role in identifying the contracting business’s true market value. Regrettably, many sellers are unable to maximize these intangible assets.
Organize All Major Financial Data
No seller wants to experience a derailing of a potential transaction midway during the process, particularly after spending a lot of financial resources, time, and energy. It is vital to organize all your financial information to avoid this derailing.
This means making sure all business records are available and accurate. Buyers will look to assess a comprehensive history of debts, assets, and other major financial metrics. It is necessary to reveal all financial information even when it is not complimenting the business. You hold an obligation to transparency while disclosing this information, and prospective buyers could become suspicious if the numbers are questionable.
Time your Sale
Usually, a business owner’s prerogative impacts the sale’s timeline. However, if plausible, it would be wise to wait and sell when your contracting company is in a strong state. If your firm is flourishing, it will be more appealing to prospective buyers.
This means you will probably want enough lead time for processing the sale. Moreover, you will require to plan in advance by putting together your business history, sales portfolio, and financial records. Having these documents and information ready can assist increase the odds of a successful and timely transaction.
Find the Right Business Broker Company
If you need to sell a contracting company for full value and fast, it is practical to look for the assistance of a professional. After all, while you could be an expert at successfully running a contracting company, you likely do not have expansive business sales background knowledge.
That is where experienced and qualified business brokers will be indispensable. Working with an experienced broker can help you optimize your return and streamline your sales. A business broker will assist you:
- Get at a fair and true valuation, including intangible values.
- Determine and target prospect buyers.
- Avoid unnecessary and costly mistakes that can derail the sales process.
- Bring in a professional’s perspective and skill to negotiations.
While employing the services of a business broker presents some significant advantages, not all brokers have the same market expertise or experience. The broker you choose needs to hold long-term credibility, specific contracting business transactions knowledge, and a record of successful deals. These three attributes are essential; you may not achieve your desired outcome without them.
Why Integra Business Brokers is the Right Business Broker for your Contracting Business
At Integra Business Brokers, we have immense experience selling contracting companies of all sizes. We also have particular expertise in the scope of niches in this category. The following are some segments we specialize in:
- Specialized Industrial Constructions
- Real Estate Development
- Excavation and Landscaping
- Home Improvement
- Infrastructure and Heavy Construction
- Foundation and New Home Construction, among others
As a renowned business broker in this sector, we are committed to helping you maximize your company’s value. We use a transparent, simple sales process to ensure your transaction is rewarding, swift, and painless.
If you are interested in selling your contractor company, Integra Business Brokers can assist. Contact us today for more information concerning our service or interact with one of our brokers.