Industries/Construction

General Contractor Business Valuation

General contractors manage construction projects for residential and commercial clients. Commercial focus and bonding capacity drive value.

2x - 4x
SDE Multiple
3.5x - 6.5x
EBITDA Multiple
$500K - $10M
Typical Deal Size
3x
Mid-Market SDE

Market Overview

The US construction industry generates over $1.4 trillion annually, with commercial sectors offering more predictable revenue.

What PE Buyers Look For

  • Commercial project focus
  • Bonding capacity
  • Repeat client relationships
  • Project management capabilities
  • Subcontractor network

Valuation Factors

Value Drivers

  • +Commercial focus
  • +Bonding capacity
  • +Repeat clients
  • +Project management team

Value Detractors

  • -Residential only
  • -Owner as project manager
  • -Limited bonding
  • -Subcontractor dependency

Key Metrics Buyers Evaluate

When evaluating a General Contractor business, buyers focus on specific metrics that indicate health, stability, and growth potential.

  • 1
    Backlog by project type
  • 2
    Bonding limits
  • 3
    Gross margin by job type
  • 4
    Repeat client percentage
  • 5
    Safety record (EMR)

Typical Deal Structure

General Contractor deals typically follow this structure:

  • 60-75% cash at close
  • 20-30% seller note tied to backlog completion
  • Bonding transition support

Free Business Valuation Calculator

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General Contractor Markets by State

Explore General Contractor acquisition opportunities and market data across major states.

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