Question: How Do I Sell My Construction Company?

What are the 5 methods of valuation?

There are five main methods used when conducting a property evaluation; the comparison, profits, residual, contractors and that of the investment.

A property valuer can use one of more of these methods when calculating the market or rental value of a property..

How much money does a construction company owner make?

According to the job search website, in 2016, the average construction business owner makes only $66,000 per year; while construction company vice presidents average $117,000 annual salary, senior project managers average $102,000 and project managers average $79,000.

What are valuations in construction?

The meaning of ‘value’, in the context of interim valuations, can be contested. According to the JCT Standard Building Contract with Quantities 2011, it refers to the ‘total values of work properly executed by the Contractor’.

How do I advertise a contractor?

Our top marketing ideas for contractors focus on the online components of contractor advertising, including:Website Design.Search Engine Optimization (SEO)Pay Per Click (PPC or “paid advertising”)Social Media Marketing.Video Marketing.Email Marketing.

What is a fair Ebitda multiple?

Commonly, a business with a low EBITDA multiple can be a good candidate for acquisition. An EV/EBITDA multiple of about 8x can be considered a very broad average for public companies in some industries, while in others it could be higher or lower than that.

How many years of Ebitda is a business worth?

For these companies, EBITDA for any given year may not represent a very accurate picture of the average level of EBITDA the business generates over a full business cycle (roughly 5.5 years) and thus its future earnings potential.

How can I sell my product fast?

How To Get Your Products To Sell FAST1) Connect to your audience instantly. … 2) Capture your audience. … 3) Make your site mobile friendly. … 4) Establish authority and credibility. … 5) Convert your audience into paying customers. … The tool that will save you time and effort…More items…•

What multiple do construction companies sell for?

A spectrum of multiples for construction businesses Depending on how many of the above boxes your business checks and most importantly, how large the business is, construction businesses will sell for 1 – 4.5 X annual profit. With more than half of these businesses falling somewhere between 2-3 X.

What are the three methods of valuation?

Valuation MethodsWhen valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. … Comparable company analysis. … Precedent transactions analysis. … Discounted Cash Flow (DCF)More items…

How do I approach a contractor?

Start with a detailed plan. This is the most important item before you even approach a contractor. … Provide a list of specifications ahead of time. … Price out your project. … Ensure your contractor is insured. … Check out your contractor’s work. … Interview your contractor. … Dealing with the extras. … Ask about timelines.

How do I sell my product to a big company?

Seven Tips for Selling to Big BusinessesDo your homework. Prepared entrepreneurs know what products or services the prospect is already using that they might be able to provide. … Be ready with your short pitch. … Have your financials in order. … Be able to deliver. … Plan to follow up. … Get pro business cards. … Get a company email address.

What is a good multiple of Ebitda?

The EV/EBITDA Multiple The enterprise-value-to-EBITDA ratio is calculated by dividing EV by EBITDA or earnings before interest, taxes, depreciation, and amortization. Typically, EV/EBITDA values below 10 are seen as healthy.

How do I approach my company to sell services?

Essential guide to selling your products or servicesDeveloping a sales strategy. Ensure you know as much about your target audience as possible. … Planning your approach. Identify decision-makers and other individuals who influence purchasing decisions. … Getting access. … Asking questions. … Selling the benefits. … Handling objections. … Closing the deal.

How do I sell my brand?

How to Sell Your BrandKnow Who You Are. Before you can sell something, you have to know it. … Create a Key Message. Once you know who your brand is, figure out a way to communicate that persona to your potential clients. … Find the Right Audience. … Back Up Claims with Facts. … Use Multiple Channels. … Be Consistent.

How do you price variations in construction?

The second, and alternative, approach to valuing variations is to use rates and prices that have no relationship to the contract sum. For example, a contract may contain a lump sum for the original scope but stipulate that variations should be valued by reference to an entirely separate schedule of rates.

How do you value a construction company?

Valuing your company may involve taking the value of “hard” assets or the company’s future earnings potential and adjusting them based on factors such as the asset replacement values and the value of intangible assets, including goodwill, work in progress, or a well-trained employee workforce.

How do I sell to a general contractor?

5 Ways to Sell Your Company to General ContractorsNetwork constantly. When project managers or general contractors are looking for subcontractors, they’re going to turn to their network for recommendations. … Submit a proposal. … Subscribe to a reporting service. … Develop relationships with the big names in your area. … Provide quality work.

How do you target a contractor?

Digital Marketing Ideas for Targeting ContractorsUnderstand your target buyers. Do your research. … Build stronger relationships. Digital marketing is excellent for building awareness of your brand. … Become a knowledge provider. Building contractors are constantly seeking out information. … Become the best service provider: Answer their questions. Solve their problems.

How is property valuation calculated?

Under this method of land valuation, the value of land is separately assessed and the value of the building is added to the number, to arrive at the final value. using this method, one could arrive at land valuation as well as property valuation.

How do I sell my small construction company?

How Do I Sell My Business?Build a Business Worth Selling. … Get Your Financials in Order. … Determine the Value of Your Business. … Create a Selling Document to Attract Buyers. … Put Together an Exit Strategy. … Negotiate a Good Deal.