Selling your Construction Company

When you are going to sell your construction company it is important to remember that timing is everything. If you wait till the market is struggling and you know the next few years will be difficult then you are not going to get as much for your business; however, is you are experiencing rapid growth, new contractual relationships, and your business is beginning to branch out into new markets then you could profit from unearned future revenues.

When you are building your business try to establish an organization with the right foremen, executives, and leaders that can make difficult decisions that will expand your company. Even though you may not always make the same decisions, getting the leaders that can make good decisions and move a business forward will have a tremendous impact on the value of your business.

Lastly, when you are ready to pull the trigger and sell you company you may need to consider sticking around for a few years.  The investing companies will probably want you to remain with your business to ensure a smooth transition in management after the sell. They will probably even structure the buyout with a clause that will pay out dependent on the company’s performance one or two years after you close the deal. You will probably want to be there to ensure it pays what you want it to.

Selling a family owned and built business can be a very emotional transaction. When you have spent most of your life building the business it could, for some people, be like marrying off your eldest daughter. If you don’t think you are getting what it is worth, yet the market believes it is worth what you are offered then you may have some struggles. At DealCapital we highly recommend that you speak with one of our advisors so you have the right expectations, otherwise you may spend a lot of time and money only to retract and offer that you believe is too low.

Troy Jenkins
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