Maximise value of your construction company
16th June 2020
The construction industry in the UK is a fast-growing sector, with demand for established & successful businesses being strong. A construction business can be a profitable business, but for every business owner, there’s a time to retire at some point.
Owning a construction company can be very demanding and it is vital to plan for your exit to ensure that you optimise the price and deal structure which you achieve. When you do decide to sell your business, make sure to get these 4 crucial aspects right – timing, valuation, marketing and finding the right buyer.
Do not wait until you decide to retire! Each year you plan your business goals, selling your business is no different – you must plan ahead! The best time to sell a construction business is when your turnover and profits are strong and at a point where you think it will be difficult to increase. If you are thinking of selling, then below are a few considerations for you to think about.
Before you can get the best value for your construction business, you need to know how much it is worth. It is important to reach out to a commercially focused business broker who can plan your sale strategy and talk to you about the price and deal structure which can be realistically achieved. Business Valuations vary widely, and it is important to sit down and discuss with a business broker the key aspects of your business and how they will affect the price which can be achieved.
If you want to sell you construction business to the right buyer who will look after your business, get in touch with an expert business broker. They can market your business at the right place to the right people who can appreciate prospects.
Business brokers can connect sellers of the companies with appropriate buyers, helping both sides get what they want to close the deal. Deal focused brokers will create a bespoke confidential marketing plan for your business and their specialist deal makers will work in conjunction with you to deliver the marketing plan and deliver ready willing and able buyers to meet with you.
Finding a buyer:
To find perspective buyer, you have to make your business look as appealing as possible by making sure all the financials are transparent. Buyers believe they will realize a better return on their investment when the construction company has achieved adequate diversification or specialisation in key areas.
Having due diligence in place with company’s track records, contracts, clients, financial institutions, or even past partners or employees will give clarity to the buyer.
Finally, it’s crucial that you hire not just any business broker, but one with specific experience in construction industry to take advantage of the best features of your construction business to maximize your sale value.
When you’re ready to sell your business it’s important that you have a clear understanding of what your personal goals and objectives are of the sale.
At Kings Commercial, we will work with you on every step of the way and guide you through the process to ensure you achieve those goals.