Top Construction Business Brokers In Wisconsin
When it’s time to sell your business, finding a seasoned and specialized construction business broker in Wisconsin can help ensure you maximize your business’ value. As Wisconsin’s leading business broker, Lake Country Advisors has aided numerous business owners in selling their companies efficiently. On top of acquiring more cash at closing, timing and confidentiality are among two of our primary focuses. We offer comprehensive business brokerage services and assess every sale facet to achieve maximum valuation.
How To Sell Your Construction Business
For Maximum Value
To sell a construction company in Wisconsin for maximum value, there are crucial factors to consider and various steps to perform. As a premier brokerage firm in Wisconsin, we execute proven, systematic methods to sell a construction company and ensure our clients attain maximum valuation for their business.
In preparation for your advertising engagement launch, we will create your offering memorandum. To complete your offering memorandum, we will request further financial and inventory paperwork from you. This stage enables us to learn more about your business to answer questions potential buyers may have. Rest assured, proprietary information will only be presented to prospective buyers after having them sign a non-disclosure agreement.
Once we’ve selected qualified buyers, we will schedule a discussion with you through a conference call, in-person meeting, or a showing. As an esteemed construction business broker, we require our clients only minimal participation to sell their business.
Once you and the prospective buyer have arrived at a mutual agreement, you can now sign the business purchase contract. Rest assured, your construction business broker in Wisconsin will guide you all throughout the sales process to ensure you make the most informed decision
FAQs About Selling A Wholesale Business
Here are answers to some of the most frequently asked questions about selling a wholesale construction business.
Numerous factors contribute to selling your wholesale construction company for maximum value. You must follow a tedious but proven process to sell a construction company at a high value and maximize your profit.
Business Valuation & Due Diligence
To value your construction company accurately, you must evaluate its worth based on financial factors such as assets, earnings, and average growth rate, among others. A professional appraiser can review your financial statements, property assets, tax return documents, and more to estimate your company’s value.
Due diligence is one of the primary necessities most prospective buyers require. Due to this, preparing the crucial documents to present to the buyer is vital and demonstrates your company’s credibility. These include balance sheets, income statements, invoices, and more.
Growth Potential
As the name suggests, growth potential is your company’s potential to generate larger profits based on actual data and records. It is a computation and a detailed analysis of financial statements, market trends, and your number of years in operation. It provides a comprehensive calculation of objective probability to determine its value and highlight potential growth.
You can also include a comprehensive strategic plan that details current market conditions, future projections, and industry trends that affect the business’s long-term success. To further increase valuation, you can also include growth strategies for the potential buyers.
Transition & Exit Strategy
To sell a construction company for maximum value, it should be marketed in a way that the business does not depend on the owner to remain profitable. A transition and exit strategy must be in place to gradually decrease dependency on the owner. The transition period allows your company’s new owner to run your business adequately when you officially resign your position. You can do this by gradually decreasing your presence as the new owner is getting attuned to running your business. Lake Country Advisor’s construction business broker in Wisconsin can help you with your transition plan.
The value of a construction company is similar to that of any other business. The critical difference is that most construction companies have some physical assets and liabilities on the balance sheet, while most others do not. Here are a few methods our construction business broker in Wisconsin employs to determine valuation when preparing to sell a construction company:
Financial Statement
A critical financial statement is the balance sheet that includes all your business’s assets and liabilities. Assets include cash, accounts receivable, inventory, and equipment. Liabilities include bank & mortgage debt, accounts payable, and more. Your construction business broker in Wisconsin can help ensure you have complete documentation for the buyer.
Asset Valuation
Another crucial step in valuing your construction company is to evaluate your assets. Your construction business broker in Wisconsin will ask you to compile a comprehensive list of all of your assets. These include:
- Treasury bills & government bonds
- Marketable securities & money market holdings
- Property, plant, and equipment
- Furniture & vehicles
- Intangible assets
While collating your company’s assets may seem like a chore, it is vital in maximizing valuation.
Discounted Cash Flow Analysis
The discounted cash flow analysis is a financial method used to value a business by determining the current value of future cash flows. It involves calculating the net present value (NPV) of future cash flows, which is equal to the sum of all cash flows after the deduction of any initial investment. The NPV is then discounted back to arrive at the present value of future cash flows. This is included in your offering memorandum and presented to vetted buyers after they have signed a non-disclosure agreement (NDA).
Market Value
The market value is the price your company is valued at that could either increase or decrease considering the current market trends. Timing is a crucial factor that your construction business broker in Wisconsin will consider in selling your construction company.
If the current market forecasts positions you at a low value, your construction business broker in Wisconsin may strategize and employ methods to increase valuation before putting your engagement on the market. However, if a slight delay is not an option, we will align our priorities with yours and sell your construction company in the least amount of time at the highest valuation possible.
There are no hard and fast rules when determining the value to sell a construction company for. If you’re considering to sell a construction company, there are several ways your construction business broker in Wisconsin can calculate your company’s worth:
Revenue
Another method of business valuation is determining your annual revenue. This number doesn’t have to be exact, but it should be close. If you’re unsure, have your accountant review your last two years of tax returns and average them together. Your construction business broker in Wisconsin can help you with revenue calculation.
Growth Potential
While revenue is substantial, so is the potential for growth in your company’s future. As discussed, you can make an objective estimate of your company’s growth potential based on your value at start, current, and the number of years in operation.