BreakThru Realty

How Construction Companies Are Valued

A construction company is valued on earnings and on what the next year holds: the backlog of signed work with proven margins, the repeat clients and service agreements, and the licensed qualifier and crew who will still be there after the sale.

Storefronts and parked cars along a small town main street at sunset

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Last reviewed November 7, 2026

Find Out What My Business Is Worth · (786) 914-1017

Earnings, Backlog and Work in Progress

Owner run companies are priced on seller's discretionary earnings, companies with a management team on EBITDA. Buyers then value the backlog of signed contracts at its proven margin and settle work in progress on a schedule of contract value, costs and billings to date and cost to complete, which decides what the seller receives at closing.

The Licence, Bonding and the People

The qualifying licence must stay with the company through the transition under the Construction Industry Licensing Board's rules, and a buyer who is not licensed discounts for the risk. Bonding capacity transfers only with the surety's approval of the buyer. Project managers, superintendents and estimators who stay carry the relationships and raise the value.

Repeat Work and Concentration

Service agreements, property management work and repeat commercial clients are valued above projects won bid by bid, and a company whose revenue depends on one developer or general contractor is priced for the risk of losing them. Equipment is valued with titles and loans, and the workforce's classification and insurance are checked.

Find Out What My Business Is Worth

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

How much is my business worth?
Most owner operated businesses in Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
Will my employees, customers or landlord find out?
Not from us. The business is marketed without its name or address, buyers sign a nondisclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
How long does it take to sell a business?
Six to nine months from listing to closing is common for a well prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.

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