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.
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.