Determining the value of a construction company in a merger and acquisition (M&A) transaction is unlike most other businesses. The numerous variables surrounding construction operations makes predicting a valuation challenging, and sometimes the highest value to the seller requires unique terms and conditions in a sale.
The successful sale of a construction company is similar in many ways to other companies – good financial records, stable and deep management team, defensible markets and specialty services all add value. However, the unique characteristics of construction companies – bonding, contracts, bidding, unions, licensing – when all combined can make the sale effort uniquely demanding.
Read this guide for your checklist to ensure that your construction business is ready to begin the exit planning process.