Every construction company owner has A “NUMBER”. That is the value that they hope the construction company will sell for. Unfortunately most just hope. Hope is a poor plan and works as well for succession planning as it does for pouring concrete.
How does an owner successfully sell a construction company? Whether you own a sub-contracting firm, a general contractor, supplier, or architectural or engineering firm – construction companies are very complex and difficult to sell.
We tell you what it takes to successfully sell a construction company. For starters, YOU MUST ACT. Frequently owners say “I am not doing anything because I am keeping my options open.” This a sure way to fail. That is only hoping. Try pouring concrete on hope alone.
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We outline three steps:
- ACHIEVE – Yes a great business starts with achieving. This applies to all businesses from a tiny start-up to an institution. You MUST achieve value to sell for a high price. In its simplest form to achieve value you must predictably deliver a service or product at a profit. The higher the profit, the more predictably, the less you’re involved, the higher the value. Most businesses including some very large ones never actually Achieve.
- POSITION – Once a business has Achieved value it must be made more resilient, even more predictable, and easy to buy. The steps in Achieve and Position should be done by all companies – all the time. They constitute the basics of having a good business.
- STRIKE – “Strike while the iron is hot.” Part of fulfilling on Achieve and Position is planning. Execute the plan ruthlessly. Make it happen. Do not get caught in the trap of having fun when the economy is good and missing your opportunity. Have discipline, realize your achievement and move on the the next phase of your life.
Like most things this is really easy to say. Simple even. Making it happen with all the static and noise of multiple construction projects is not.
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at email@example.com or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.