Setting up your business for a profitable sale is a challenging and emotional process. After all, you’ve built your construction company into what it is today, and you’ll want to give it the same level of care as it passes into new hands. Before you move forward with selling a construction company in Charlotte, NC, prepare your business for a successful sale.
PREPARING YOUR CONSTRUCTION COMPANY FOR SALE IN CHARLOTTE, NORTH CAROLINA
The $2 trillion construction industry includes an enormous amount of variables. There’s significant variance within the sector, from general contractors to flooring companies, single-family homes vs. multi-family homes, new home builders, renovations, outdoor living companies, and more. Add in differences in bidding, licensing, contracts, and unions, and valuing a construction company can become quite complex.
That said, the same general best practices apply when setting yourself up for a profitable sale. Having a solid customer base, reputable staff, and, of course, good cash flow are all important puzzle pieces. In addition to those basics, make sure that you address the following before listing your service business for sale.
1. REVIEW TRAINING GAPS
During the selling process, you’ll want to demonstrate your commitment to high-quality services. Part of that is showcasing your work to stay up-to-date with safety and training certifications. Grab copies of your North Carolina Contractors Licenses and other documents that show you are keeping up with regulations. If you encounter gaps during this process, take steps to address them now rather than later.
2. CHECK THE QUALITY OF EQUIPMENT
Equipment factors into the asking price for many contractor businesses. Now is not the time to slack on maintenance of any of your machinery! You may want to look into upgrading outdated equipment and servicing anything that needs a tune-up.
3. DIVERSIFY YOUR REVENUE
If the bulk of your income results from a few major clients, then your business may include more risk than a qualified buyer wants to take on. Diversifying your cash flow in Mecklenburg County and the surrounding areas helps make your construction business more appealing to buyers.
Generally, you’ll want to sell your business while it’s at its peak, so having a healthy stream of revenue can also help safeguard your plans. If you lose a single client or bid, you’re less likely to end up scrambling to salvage your plans.
4. SHOWCASE THE PATH FORWARD
Last but certainly not least, take a look at your pipeline and backlog. A history of healthy business and a clear path forward will showcase your business as an excellent opportunity. Whether you offer full-service contractor work for homeowners or specialize in high-quality countertops, residential HVAC, or another niche area, you need to be able to show a buyer a clear path to profit in your books. If, of course, you discover weaknesses in your business plan, now’s the time to address those as well!
Preparing your Charlotte area construction business for sale may feel overwhelming at first. However, you’ll find that your preparation efforts will serve you well on your path to the closing table.
Making sense of business valuations, merger and acquisition opportunities, negotiations, and the other steps of the business transaction process can be overwhelming. That’s where VR Business Brokers of Charlotte come in. Our team has decades of selling experience and knowledge to help you move towards a profitable sale! Get in touch today to learn more.