Construction is the trade where the thing being bought is hardest to hand over, because the licence, the bonding capacity and the backlog all attach to people rather than to the company name.
The contractor licence is the first question
In most states a contractor licence is held by a qualifying individual, and if that individual is you, the buyer does not get it by buying the company. Sales in this trade are commonly structured around a transition period during which a qualifier is in place, and getting that wrong stops the business trading on day one. Establish the position with your state board before you list, not during diligence.
Backlog and bonding
Signed work in hand is an asset and a liability at once: a buyer values the revenue and inherits the obligation to deliver at your prices. Where surety bonding is involved, the buyer's own bonding capacity has to cover the book, and a buyer without it cannot complete regardless of how much they want to. Screen for it early.
Owner dependence is acute here
If the estimating, the client relationships and the crew loyalty all run through the owner, a buyer is acquiring a customer list with a truck. Documented estimating, a foreman who stays, and repeat clients contracted rather than assumed are what turn a contracting business into something sellable. Website Closers publishes a live page for selling construction companies, which is the evidence this record uses to count it in the sector.
Questions people ask about construction business brokers
Can a buyer use my contractor licence?
Generally not, unless the licence is held by the entity and the state permits the transfer. Check with your state licensing board; nothing here is advice on your state's rules.
What do construction business brokers charge?
No firm in this sector read for this record publishes a rate. The commission range quoted across the trade is 5% to 10% of the final sale price, and the minimum fee usually decides the price on a smaller contractor.
What happens to work in progress?
It is valued and allocated in the purchase agreement, and getting the mechanism agreed in the letter of intent avoids the argument later. A half-finished contract at fixed price is a liability as much as an asset.