Do want to sell your Construction Company for Maximum Value?
We are Orange County Construction Business Brokers specializing in the sale of Construction companies and contractors.
At Pacific Business Sales we thoroughly understand the process of selling a construction company, how to properly value a construction company, licensing, and the RMO process involved in the sale of a contractor.
We know how to obtain SBA financing for the sale-purchase of construction companies and contractors, and have a large and diverse pool of buyers interested in construction companies like yours.
The Benefits You Get When Selling Your Construction-Contractor Business WIth Pacific Business Sales
Confidentiality is of paramount concern to our clients-sellers and we take this very seriously. All of our ads for your contractor or construction company are general in nature with no specific information that would indicate which business is for sale or precisely where the company is located. Buyers do not receive any confidential information until they have signed a Confidentiality Agreement (NDA) and completed our Buyer Profile which includes information on their financial position, experience, and credit score.
Marketing Your Business
Marketing is one of our strengths at Pacific Business Sales. It’s one thing to have your ad pop up in front of thousands of buyers, but that’s meaningless unless they actually click on it and inquire. We write excellent ad copy and headlines that draw prospective buyers to our ads. Our experience in selling construction companies and contractors has taught us how to successfully advertise these businesses plus built a large buyer database of buyers interested in construction companies. We also feature all of our ads so they are at the top of the business for sale websites and not buried with the basic ads.
We also send email blasts to our database of over 3,000 buyers as well as to the BizBuySell buyer database of buyers that have expressed interest in construction-related businesses like yours.
Comprehensive Confidential Information Memorandum for your business
We prepare a comprehensive Confidential Information Memorandum (CIM) for every business we represent. The CIM is the prospectus and marketing brochure for your business that the buyer receives after they sign the NDA. The CIM is critical in the buyer’s decision process as this is their first in-depth look at your company. Our CIM includes information about the company, financial statements, staff list (names redacted), equipment list, SBA financing structure, SBA Lender pre-approval letter, and a summary of your services/products.
The first meeting with prospective buyers is with us and is essentially a pre-screening to determine their abilities and frankly how interested and serious they are. After the initial meeting, we schedule a meeting with you, the buyer, and us to discuss the details of the business. Many of the basic questions are answered in our initial meeting, however, buyers often will ask these questions again because they like to hear it straight from the owner. Many of our first buyer-seller meetings are held via Zoom with a second meeting in person for the buyers that want to take the next steps. Of course, the next step after our meetings is to prepare an offer.
Preparing the Offer
All of our Purchase Agreements are prepared on the CABB (California Association of Business Brokers) Asset Purchase Agreement of Stock Purchase Agreement. Our firm has experience in both Asset Sales and Stock Sales (note that an Asset Sale is a transaction type, not to be confused with an asset liquidation – see our page Stock vs Asset Sale). Our experience is that Stock Sales can be critical for you since many construction company sales are Stock Sales in order to preserve the contractor’s license number assigned to the corporation, corporate EIN, and most important contracts tied to the corporate entity and contractor’s license. We also have a special Purchase Agreement Amendment specifically for construction and contractor businesses for the RMO agreement and WIP valuation at closing.
We prepare the offer with the buyer and send it for signature via DocuSign. When the offer has been signed by the buyer we review it with you, explain the details, and prepare a Counter Offer if necessary.
Due Diligence is a very critical step in the transaction process of selling construction or contractor business. This is where the rubber meets the road so to speak. During Due Diligence, the buyer and often their CPA will review the company’s tax returns, P&Ls, bank statements, and other records to confirm the revenue and earnings are what is claimed. The buyer will also be reviewing the overall company to ensure it is a well run and stable business. For construction and contractor business buyers will also be looking at your backlog, contracts, customer concentration, and your staff.
We facilitate Due Diligence with both Buyer and Seller assisting in the process and keeping it on track. After Due Diligence is complete and the contingency is removed escrow is opened. See the Steps in Selling My Business below.
We know how to sell construction companies and contractors! Our experience includes selling construction companies and contractors ranging from B license General Contractors to C Licensed plumbing, electrical, sign manufacturing, landscaping, and other contractor businesses.
We know how to value construction companies, how to handle the transaction with Work In Progress, A/R (Accounts/Receivable), and most importantly SBA financing for construction companies. It is critical that your business broker is familiar with the construction industry, can speak intelligently about your business, knows how to prepare offers for construction companies, and how to obtain SBA financing.
Buyer Screening & Qualifications
A vital aspect of selling a construction company or contractor is ensuring the buyer is capable of running the business, is willing and able to obtain their CSLB license, and equally important, capable of closing the transaction. We receive lots of inquiries for construction businesses and contractors and many of the buyers, while financially well qualified, do not have the experience or technical skills to run these companies. At Pacific Business Sales we carefully screen prospective buyers for both financial qualifications and their ability to run the business. Our experience has taught us the buyers with weak industry experience may make an offer but often do not close the transaction. For construction companies, we look for buyers with experience in construction, engineering, or relevant technical backgrounds.
Typically over 90% of our transactions use SBA financing, including SBA financing for construction companies. While there are some banks that will not finance construction companies we work with SBA PLP (Preferred Lender Program) banks that have financed many SBA construction transactions with our firm.
Why is this important to you as a seller? Simply put, CASH at closing! With SBA financing you as the Seller don’t have to finance the sale with a Seller Note. In fact, in many cases, we have secured SBA financing for up to 90% of the purchase with a 10% buyer down payment which means you get paid 100% cash, less costs at closing. Often the banks may require a small Seller Note of 10% of the transaction along with the SBA loan and in this case, you would receive 90% cash, less costs at closing.
FREE Market Value Analysis
We offer a free comprehensive Market Value Analysis of your business using the same methodology and professional valuation software used by SBA Valuation Analysts. We have excellent comparable sales data for construction companies and contractors like yours directly from the SBA closed transaction database. With our Market Value Analysis, you can be confident SBA financing will be approved at the value we recommend.
Construction Contractor Client Testimonials
“Large Electrical Contractor, Orange County
It was a pleasure working with Bill at Pacific Business Sales. He is a very knowledgeable, detail-oriented, and honest guy. What could have been a highly stressful process, was made easier with Bill’s experience and guidance through it all. I would highly recommend using Bill as your business broker and have already recommended him to a number of friends” – Thank you Bill!! – Cary Raffety, Seller/Owner CBR Electric
“Playground Equipment Turf Contractor
I purchased a company in 2017. Bill represented the seller in this transaction of a construction company. Early in the process I read Bill’s Book “Own Your Future” and referred to it many times. Before I even got to know Bill, I found the book to be critical in my understanding of the process in every step. The book was straightforward and assisted me in the assurance that I was purchasing the business at the correct price. I also used the analysis tools and guidelines for choosing the steps we would take in the process. As a broker, Bill did an excellent job of keeping us on track and facilitated a very amicable interaction between myself and the seller. He also assisted us in overcoming some tricky technical issues. I would absolutely use Bill again, and highly recommend him.” – Keith Smith, Buyer New Owner, TJ Janca Construction
Are You Ready To Get Started? Let’s Talk!
From Owner To Owner, We Understand How To Sell Your Construction-Contractor Business
The sale of a construction company or contractor business is far different from ordinary business sales because of the Contractor’s License and also because of the way your business operates as compared to other businesses. At Pacific Business Sales we are Business Brokers specializing in the sale of contractors and construction companies and we have the requisite expertise and experience to successfully sell these businesses.
From our experience in selling contractors ranging from General Contractors to plumbing, HVAC, electrical, painting, flooring, etc we thoroughly understand the Contractor’s License requirements, RMO requirements, and how to plan the transition from Seller to Buyer. We have a Contractor’s License consultant that is available to the Buyer to help them with the license applications and RMO paperwork. We also have SBA lenders we use specifically for contractors and construction companies.
From our experience as Business Brokers selling construction and contractor businesses, we know what it takes to run a successful contractor business and what to look for in buyers. When your business is on the market we pre-screen buyers to ensure they are capable of running the business and obtaining the Contractor’s License required for your business. You’ve spent years, perhaps most of your adult life, building your construction company. When it is time to sell your most valuable and hard-earned asset you need a Business Broker with a solid track record in your industry and the experience that goes with it.
At Pacific Business Sales one of our primary focus industries is construction companies and contractors throughout Orange County, Los Angles County, and San Diego County.