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How to Value a Construction Company: Valuation Methods, Multiples, and Market Cap
How to Value a Construction Company: Valuation Methods, Multiples, and Market Cap
To value a construction company, assess its profitability, project backlog, and physical assets to determine its true economic worth. A proper construction company valuation takes into account the earnings and the strength of contracts in hand, and the value of equipment or property. Business owners and investors find a reliable measure of worth by applying...
Construction
How to Sell a Construction Business
How to Sell a Construction Business
To sell a construction business, owners prepare the company for transfer by organizing financial records, documenting operational processes, and highlighting its profitability and market reputation. Common reasons for a sale include retirement, changes in personal goals, or the desire to convert equity into capital. The process involves obtaining a professional valuation, creating confidential marketing materials,...
Construction
Common Mistakes Construction Business Owners Make Pre-Sale
Common Mistakes Construction Business Owners Make Pre-Sale
Construction business owners are prone to a minefield of potential errors — some stemming from poor operational practices that have accumulated over the years, and others from misguided last-minute attempts to enhance their financials. While there are many mistakes that can derail a construction business sale, six stand out as recurring problems that destroy valuations...
Construction
Online Business Brokers: Buy and Sell Businesses
Online Business Brokers: Buy and Sell Businesses
Online business brokers provide a digital business marketplace where clients buy and sell digital businesses efficiently and securely. A specialist broker streamlines the whole workflow from business valuation and listing to buyer screening, negotiation, and closing without requiring in-person meetings. Sellers benefit from expert marketing, broader exposure, and hands-on guidance, while acquirers get access to...
Construction
Construction Investment Banking & M&A
Construction Investment Banking & M&A
In the lower middle market, construction companies enlist investment bankers like Raincatcher for expert guidance in mergers and acquisitions (M&A), recapitalizations, and exit planning. These firms often lack the specialized knowledge needed for complex transactions, making your expertise valuable when considering strategic moves, such as selling the business, acquiring another company, or restructuring capital. Exit...
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How to Sell an Online Business: Timeline, Negotiation, and Due Diligence With a Broker
How to Sell an Online Business: Timeline, Negotiation, and Due Diligence With a Broker
To sell an online business you run a sequenced engagement with online business brokers, moving from valuation and listing through buyer screening, negotiation, and due diligence to close. How does the Selling Process Work with Online Business Brokers? The selling process with Online Business Brokers begins with preparing financial records and getting a valuation to
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What Is a Good EBITDA Multiple?
What Is a Good EBITDA Multiple?
A good EBITDA multiple is the one your business can defend. Here is what drives the number in the lower middle market, and what separates a 4x business from an 8x business.
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SDE vs EBITDA: Which Multiple Applies to Your Business?
SDE vs EBITDA: Which Multiple Applies to Your Business?
SDE and EBITDA are different earnings bases, and they carry different multiples. Using the wrong one can misprice a business by millions. Here is where the line falls.
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Plumbing Business Profit Margin
Plumbing Business Profit Margin
Most plumbing companies run a 10% to 20% net margin, with service-weighted operations at the top of that range. Margin is the number buyers underwrite, and it moves the sale price further than revenue growth does.
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Plumbing Business Valuation Multiples
Plumbing Business Valuation Multiples
Plumbing businesses typically sell for 2.5x to 4.5x SDE, with larger commercial and service-contract-heavy companies reaching 4x to 6x EBITDA. Service mix, recurring agreements and owner dependency move the multiple more than revenue does.
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Franchise Ownership Transition: How to Train New Owners and Hand Over the Business
Franchise Ownership Transition: How to Train New Owners and Hand Over the Business
A franchise sale is not finished at closing. The transition period — training, systems handover, staff and equipment — determines whether the buyer succeeds, and franchise business brokers structure it into the deal terms rather than leaving it to goodwill. This article covers the handover process, owner training, and what transfers with the business. It