Sell Your Construction Company in Ohio
We help Ohio owners sell general contractors, specialty subcontractors, and companies in site work, concrete, roofing, excavation, and civil construction. Most have been operating for at least a decade and produce $2 million to $40 million in annual revenue.
We focus on Central Ohio, including Columbus, Dublin, Westerville, New Albany, and the surrounding counties. We know the local labor and bonding markets, and we also reach buyers outside Ohio when they are a better fit.
The sale stays confidential. Crews, customers, general contractors, and competitors are not told. Buyers receive an anonymous profile first and learn the company name only after signing a non-disclosure agreement and showing they can fund a purchase.
Construction companies need a different sale process from retail or professional service firms. Buyers and lenders will study the backlog, work-in-progress reports, bonding, crews, and customer relationships. We prepare those details before the business goes to market.
How Construction Company Businesses Are Valued
Construction companies are valued on earnings, not revenue. Smaller owner-operated contractors are usually priced on SDE, or Seller's Discretionary Earnings. That is your net profit plus your own compensation, plus personal expenses run through the company, plus interest, depreciation, and one-time costs. It answers the question a single buyer asks: what will this business pay me to run it?
Larger contractors are usually priced on EBITDA, or earnings before interest, taxes, depreciation, and amortization. EBITDA does not add back the owner's salary because the buyer expects to pay someone to fill that role. Around $1 million in adjusted earnings, lenders and larger buyers generally begin using EBITDA instead of SDE.
A strong backlog, repeat customers, reliable managers, transferable bonding capacity, licensed employees, current work-in-progress reports, and steady margins can support a higher multiple.
Customer concentration, owner dependence, one unusually profitable project, aging equipment, undocumented subcontractor relationships, and financials that do not tie to the tax returns can lower it.
The table uses completed private construction company sales reported by BVR DealStats.
These figures are a reference point, not a valuation. The size of the company, the quality of its earnings, and current buyer demand all matter. We review three years of financials and the add-back schedule before giving an owner a range.
| Metric | Average | 75th Percentile |
|---|---|---|
| SDE multiple | 2.1x | 2.7x |
| EBITDA multiple | 4.5x | 4.3x |
| Revenue multiple | 0.42x | 0.56x |
Based on 229 private company transactions. Average is the median; the raw average is skewed by one outlier.
Source: BVR DealStats. Private company transactions with $250K to $10M in revenue, closed 2016 to present. Multiples are MVIC (total price) divided by SDE, EBITDA, or revenue.
What Buyers Look For
Backlog. Signed contracts and awarded work that carry past closing. Buyers pay for revenue they can see, not revenue you expect. A written backlog report with contract values, percent complete, and expected finish dates is the single most useful document you can have ready.
WIP schedule quality. The work-in-progress schedule is the first thing a serious buyer or lender reads. It has to tie to your income statement and your balance sheet. If the WIP is estimated once a year at tax time, expect the buyer to discount your earnings.
Bonding capacity. Single job and aggregate limits, the surety relationship, and whether that capacity can be rebuilt under new ownership. A buyer with weaker financials than yours may not inherit your program, which changes what they can pay.
Licensed staff. Who holds the licenses, and do they stay after the sale? If the only license belongs to the departing owner, the buyer has a real problem. Licensed employees under a retention arrangement remove that risk.
Customer concentration. If one general contractor or one developer is a large share of revenue, the buyer prices that risk in. Spread across many customers is worth more than the same revenue from one.
Recurring versus project revenue. Service agreements, maintenance contracts, and repeat annual work are valued higher than one-off projects, because the buyer can count on them. Contractors with a service division consistently price better than pure project shops.
Equipment condition. Age, hours, maintenance records, and what is owned free and clear versus financed. A fleet that needs replacing in two years is a price adjustment, and buyers will find it in diligence whether or not you raise it.
Owner dependence. If you estimate, sell, manage, and collect, the buyer is buying a job and paying accordingly. A general manager, a lead estimator, and documented processes are the most reliable way to raise your own multiple.
Common Problems That Kill Deals
Incomplete WIP schedules. Missing or stale work-in-progress reports make earnings difficult to verify. Prepare a monthly WIP schedule well before going to market.
Overbilling and underbilling. Billings in excess of costs and costs in excess of billings change what the business is actually earning right now. Large unexplained swings make buyers assume the profit is borrowed from future jobs.
1099 misclassification of crews. Paying field crews as contractors when they function as employees creates a liability for the buyer. It can lead to a price change or end the deal.
Municipal withholding issues. Ohio city income tax withholding across multiple jurisdictions is easy to get wrong when crews move between municipalities. Unpaid or misfiled withholding becomes an escrow holdback at best.
Unassignable contracts. Many construction contracts cannot be transferred without the other party's consent. If your largest agreements do not survive a change of ownership, the backlog a buyer is paying for may not come with the deal. Review the assignment language early.
How the Sale Process Works
- Valuation. We review three years of financials, build the add-back schedule, and compare the business with similar sales. You get a range and the math behind it.
- Preparation. We deal with reporting gaps, contract issues, customer concentration, and owner dependence before buyers begin their review.
- Confidential marketing. A blind profile goes out to vetted buyers. Names are released only after a non-disclosure agreement and a check on the buyer's ability to fund.
- Letter of intent. We compare offers and negotiate the price, structure, escrow, and transition terms before you sign.
- Due diligence. The buyer verifies the financials, contracts, employees, and operations. We manage the document requests and keep the advisors moving.
- Closing. Final documents, funding, and handover. Most prepared businesses close six to nine months after going to market.
Frequently Asked Questions
How long does it take to sell a construction company?
Plan on six to nine months from the day you go to market to the day you close. Preparation before that, mainly cleaning up WIP reporting and financials, can add another two or three months. Contractors with messy books take longer, and some never close at all.
Will my employees and customers find out?
Not from us. Buyers see a blind profile with no company name. Your identity is released only after a non-disclosure agreement is signed and we have confirmed the buyer is financially able to complete a purchase. Most owners tell key staff shortly before closing.
Do I have to stay on after the sale?
Usually for a transition period, often three to twelve months, sometimes longer if you want it. The length is negotiable and it affects price. Buyers pay more when the handover is orderly, especially for customer and general contractor relationships.
What if my bonding does not transfer?
That is common, and it is manageable. Some buyers bring their own surety relationship and their own balance sheet. We screen for that early so you are not deep into a deal with a buyer who cannot support your bonded work.
Should I finish my current backlog first?
No. An empty backlog is worth less, not more. Buyers want to see work in hand that carries past closing. There is no clean stopping point in construction, so the better plan is to go to market with a healthy, well-documented backlog.
What do you charge?
Our fee is success based and paid at closing out of the proceeds. There is no upfront listing fee. If the business does not sell, you do not owe us a fee.