Keystone Business Advisors has decades of experience helping construction and maintenance businesses prepare for acquisition.
Over the years, we have sold a wide variety of construction and maintenance companies including electrical contractors, HVAC contractors, plumbing contractors, general contractors, janitorial services, building maintenance services, street sweeping, pest control, landscape services, tree trimming, and environmental services business.
We are experts at advising businesses how to work with the Contractors State License Board (CSLB) regarding the issuance or transfer of the required contractor’s license.
When the time comes for you to sell a construction or maintenance business, you will want to work with an advisor who understands the complexities of the construction industry.
Due to the fact we have represented many contractor and maintenance businesses, Keystone Business Advisors has developed a large database of qualified financial, strategic, and private equity buyers. If your business has over $1.5M in EBITDA, we would typically market and present your business to strategic and private equity buyers as an add-on or platform acquisition. If your business has less than $1.5M in EBITDA, we have found that a financial buyers or smaller industry buyers could be ideal.
With decades of proven experience under our belts, our team can guide you regarding key factors buyers are looking for regarding revenue mix, customer concentration and take steps to showcase the stability of your business and the potential for growth, such as implementing vertical and horizontal integration and showing that your business can acquire and execute large projects.
Overcoming Construction Industry Challenges
Keystone Business Advisors understands the current challenges in the industry ranging from difficulty finding skilled workers and high workers compensation rates to dealing with the increase in California’s minimum wage. These higher wages result in higher cost of goods sold, which are making it more difficult for company’s operating in California to remain competitive. Buyers will be looking into how you have handled the rising labor costs, potential labor shortages, worker productivity and safety.
Keystone Business Advisors is ready to leverage our decades of experience in all aspects of your industry to achieve impressive results that will be attractive when it comes time to sell a construction company in California. Throughout the process, we will carefully manage your sale to ensure that any potential obstacles are adeptly addressed.
A sample of construction companies we handle include:
- Plumbing contractors
- HVAC contractors
- Electrical contractors
- Landscape contractors
- Paving & poured concrete contractors
- Drywall & installation contractors
- Finish carpentry contractors
- Flooring contractors
- Utility system construction
- Civil engineering
- Pest control
- Cleaning & janitorial
- Street sweeping & power washing
- Facilities / building services
- Specialty trade contractors
How to Sell a Construction or Maintenance Business
Once a prospective client has selected us and committed to the process, stating, “Sell my construction company,” we begin with the creation of a 20-60-page Confidential Information Memorandum designed to efficiently and effectively market your business. The level of detail and information provided in this memorandum is far beyond what would be prepared by a typical construction business broker in Los Angeles.
Our M&A advisors work with only five or less projects at a time; this is in stark contrast to the typical Los Angeles construction business broker which may work with dozens of projects simultaneously. Our intense focus allows us to build a comprehensive marketing program and give our clients the attention they deserve. We take a collaborative and highly adaptive approach to finding buyers. In fact, we actively target buyers we believe will be ideal rather than solely relying on internet marketing.
When our team signs on to help you sell a construction business or sell a maintenance business, you will also immediately notice our commitment to you and the process. Our team will work to leverage all of our resources to support your needs, which means we will work with your current team of legal, tax and financial planning advisors or can recommend the industry’s top professionals when needed.
Sell a Construction or Maintenance Business with Keystone Business Advisors
According to IBIS World, there are currently over 3 million construction businesses in the United States. Construction is still booming, much of this is due to positive trends in the residential market. Some of our clients are looking to sell before construction lulls which will prevent them from selling until they have two years of steady growth.
It is important to note that there is great deal of consolidation in certain construction market segments. Strategic buyers are finding that growing through acquisition provides a way to add critical labor talent in addition to growing its customer base and top line revenue.
Keystone Business Advisors focused on a frequently overlooked sector of the M&A market. By zeroing in on companies with annual sales between $2 million and $100 million, we are in a unique position to sell construction businesses. Over the years, we have successfully completed over 200 transactions.
Refer below for a sample of construction and maintenance business transactions we have recently completed.