Valuing a Construction Company for Sale

Construction companies often sell for lower multiples than other businesses because they are "Project Based" rather than "Recurring Revenue." Once the project is done, the income stops.

How to Increase Value

To get a higher price, you need to show a pipeline of future work.

• Forward Contracts: Signed contracts for the next 12-18 months.
• WIP Management: Low Work In Progress (WIP) liability. Buyers hate taking on messy, half-finished jobs with unknown defects.
• Management Team: A Project Manager who stays after you leave.