Thinking of Selling your Construction Business?
11th June 2020
When the time comes to sell your construction business, it’s vital that the time is right, the process is smooth & efficient and that the right buyer is resourcefully found and that the optimum deal structure is secured. That’s why here at Kings Commercial, we understand the construction industry and strive to work with our clients to achieve the best outcome for you and your business.
Key facts to consider when selling your construction business:
Construction business sales can often be complex if the key elements are missed out. To minimise any delays and to prevent pitfalls, key areas to acknowledge are:
- Staff: Like any other company, skilled and experienced staff are vital to a successful business. Identify key people in your business to continue the growth of the company.
- Due Diligence: Business value of the company is based on the ability of the seller to transfer ownership to the buyer. Due Diligence will be analysed in detail by the buyer for past, current and completed contracts. Showing history and updated statistics will help buyer to understand your business better and see the potential.
- Client Base: What percentage of the income is driven from regular clients and which are one off projects. Is the target business on any public sector approved supplier lists?
- Business Valuation: This is key element and must be realistic. Value of the business can be defined by size of the business, bonding requirements, profit and applying multiples to name a few. It is advisable to hire a broker who can provide accurate valuation.
- Finding a buyer: To find the right buyer, make sure you have paperwork and accounts up to date and a robust due diligence process in place. With this in place, buyers will be able to see the profitability of the business.
Here at Kings Commercial, we pride ourselves in having expertise in managing the sale of small to medium sized businesses. We reach out to the business community in the UK and across the globe to find the right buyer and acquisition targets for our clients, to deliver innovative solutions for commercial business sales.
We’ve handled thousands of sales over the last 30 years and our team is dedicated and committed to always going the extra mile, providing a client focused, bespoke service with in-depth knowledge of the construction market, process and requirements.