A construction company's reported profit is an accounting position as much as a fact, because revenue is recognized across jobs that are not finished. Buyers know this, so the first thing they do is rebuild your earnings from the job level. What they find there decides the price.
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Contract accounting is the earnings
Over and under billings, retainage held by customers, claims in dispute and how completion is estimated all move the reported profit. A buyer will test whether your estimated margins matched the outturn on finished jobs. A history of optimistic estimating is the most expensive thing they can find, because it calls the whole record into question.
Bonding, licensing and the crew
Surety capacity is granted on the balance sheet, the record and often on you personally, and a change of ownership triggers a fresh look. If the buyer cannot replace your capacity they cannot deliver your backlog. Where the state license sits with a qualifying individual who is you, that needs a plan before closing rather than after.
What narrows the pool
Work concentrated with one general contractor or one public agency. Prevailing wage or union agreements a buyer must assume. Open claims or litigation. Equipment financed on terms that must be settled at closing. None of these prevents a sale; each of them reduces the number of buyers who can do it, which is why they belong in preparation.
Questions people ask about sell construction company
Does my backlog count towards the price?
Signed contracts with dates and agreed margins do. A pipeline of expected repeat work counts much less unless the history supports it.
Who buys construction companies?
Regional competitors, national contractors entering a market, and funds building specialty trade platforms. Each values backlog and crews differently.
How long does it take?
Nine to twelve months is realistic, with bonding and license questions the most common cause of delay.