Construction Business Brokers

Figuring out how to sell a construction company in the lower middle market, usually with a valuation between $5 to $50 million, can be stressful and overwhelming, but mergers and acquisitions business brokers are there to help ease the process. M&A brokers make sure you find the perfect buyer for your construction business in California at the best price. 

What Are Construction Business Brokers? 

Lower middle-market construction business brokers help you sell your company. There are various ways to help retiring baby boomers, construction business owners find the right buyer for their business that will ensure they leave their business in the hands of someone who will continue to make the business prosper. Ways business brokers can help you sell your construction business include. 

Qualifying Buyers

The main task of construction business brokers in California is looking for potential buyers. Merger and acquisition knowledge with expertise is important when selling a construction company in the lower middle market. M&A advisors know how to share information with potential buyers while maintaining the confidentiality of their clients to gauge interest. Oftentimes, Lower middle-market merger & acquisition advisors know how to navigate non-disclosure agreements, NDA, to protect the construction business seller. 

Creating an Ideal Listing

Creating a business sale listing for your construction company in California is a large part of navigating lower middle market business deals. The sell-side advisor will utilize marketing and advertising skills to create a listing that showcases your business while also keeping confidentiality if necessary. 

They will also look at the business records closely to list them at the most accurate value during this process. A construction business valuation calculator can help construction business brokers value your business so buyers will show interest in your listing. They will also help you navigate getting a construction company appraisal which is another significant part of creating the ideal listing to find the perfect buyer. 

Networking

Once the listing is on the market, the business broker will use their network of resources and other brokers to locate potential buyers, resulting in a profitable sale for the construction business owner. Once finding a buyer interested in a California construction business, the broker will analyze their offer and further showcase the company's value for sale. 

Negotiating the Deal

Various negotiating aspects come along when trying to close a California business deal. During initial negotiations with a buyer, due diligence is an important part. During due diligence, all information about your business, like profitability and what will be conveyed with the sale, requires negotiating. 

After negotiations, the purchase agreement makes sure both buyer and seller achieve their goals. The middle market business broker works alongside a legal advisor to write a contract that both parties agree on, which results in a successful negotiation. Personal attachment to the business is standard for a seller, but a qualified merger and acquisition advisor has no emotional attachment to the company. 

Finalizing the Contract 

Your M&A advisor will help finalize all contracts by ensuring all necessary documents have been exchanged and signed by both parties. Documents like the quality of earning reports and credit histories are examples of documents buyers want in a sales transaction. 

They ensure the completion of all negotiations and legal documents as well. Once confirmed that all contracts are executed, closing the sale can complete. Once the deal is closed, construction business brokers will ensure all information and assets are transferred over to the buyer making closing easy and as stress-free as possible. 

How Can M&A Business Brokers Help You? 

While construction business brokers can help by providing the duties mentioned above, they can also help you discover how to increase company valuation while selling it. There’s more than one type of buyer-seller scenario when it comes to selling a construction business. 

In a familiar buyer-seller scenario, construction business owners encounter sell-side, buy-side transactions. Lower middle market brokers make sure to approach only the most qualified buyers ensuring you get the value for your business. There are various types of valuation methods that can be used by the M&A advisor to determine the value of the business. These include: 

• Asset approach
• Income approach
• Market approach 

Your construction business broker will help you determine which approach is best to achieve the sale outcome desired, resulting in you receiving the best value for your California construction business. 

How Can You Sell Your Business Quickly 

When you’ve made the vital decision to sell your construction business in the lower middle market segment, odds are you want to get the deal done as fast as possible. Having tools that place your business in the ideal spot for a potential buyer is crucial for a good and fast sale. Here are some things you can do as a business owner to secure the quickest deal possible while getting the best value for your business. 

• Compile all business records 
• Organize the businesses operations 
• Create a marketing plan
• Utilize business brokers 
• Target potential buyers 
• Be prepared for due diligence 
• Keep good communication throughout negotiations 

Using these tips can help speed up the negotiation to contract close process giving both buyer and seller successful transactions. 

In 2021 a record number of people left their jobs to become their own bosses. This movement makes 2022 an ideal year to sell your California construction business because many people are on the lookout for companies to acquire. 

Selling Your Business to a Private Equity Firm & Strategic Buyers

When it comes to finding qualified buyers, private equity firms and strategic buyers are a great way to go, but how do you catch their attention? There are a variety of tactics used that will make your construction business stand out when it comes to getting acquired. The top 3 things that will shine a good light on your business include: 

1. Create buzz around the business 
2. Place the right investors on the board 
3. Showcase a path for the acquisition so potential buyers can see the potential 

Mergers and acquisitions business brokers can do all these things for you and place your business in a good spot for negotiating and securing a beneficial deal. See how Rogerson Business Services was able to sell a landscaping business quickly in this case study.

How Can a Lower Middle Market Business Broker Help You?

That’s why M&A construction business brokers and advisors are here to guide you in making the sale smooth and stress-free. They know how to value your business and market it to lead to a successful exit. So don’t get stressed about selling your construction business and leave the work to a lower middle market advisor. 

Next, let's take a look at a valuation question that a lot of construction business owners ask: How much is my company worth? 

If you have decided to value and then sell your construction business now or within the next six months, click here to get started with this quick and simple form, so we can understand your pain points better and prioritize your inquiry with RBS Advisors.

Go to the next article: Part of tips to selling a construction company in California series ->