How to Sell Your Construction Business
Construction companies are valued on backlog, bonding capacity, and management depth. Specialty contractors typically trade at higher multiples than general contractors.
EBITDA Multiple
3x – 6x
SDE Multiple
2x – 3.5x
Typical Revenue
$2M–$25M
Avg. Timeline
8–14 months
What Drives Construction Valuation
Buyers evaluating construction businesses focus on these key factors when determining what multiple to offer:
- Backlog and pipeline of contracted work
- Bonding capacity and surety relationships
- Management team depth beyond the owner
- Specialty trade or niche focus
- Safety record and OSHA compliance
- Equipment ownership vs. rental
Who Buys Construction Businesses
- Larger general contractors
- Private equity-backed construction platforms
- Strategic acquirers seeking geographic expansion
- Employee groups (management buyouts)
Example: Construction Valuation
A construction business with $500,000 in EBITDA would typically be valued at:
Low estimate (3x)
$1.5M
High estimate (6x)
$3.0M
Use the Business Valuation Calculator with your actual numbers.