Broker Guide · General Contracting

Find the Right Business Broker for Your General Contracting Company

Whether you're buying or selling a GC firm with $1M–$5M in revenue, the right broker understands backlog quality, license transferability, and construction-specific deal structure.

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General contracting businesses trade at 2.5x–4.5x EBITDA in the lower middle market, driven by backlog strength, bonding capacity, and owner independence. Brokers who specialize in construction understand project-based revenue cycles, subcontractor dependency, and the licensing requirements that can make or break a deal closing.

Types of General Contracting Business Brokers

Construction-Specialized Business Broker

8–12% of transaction value, often with a minimum fee of $25,000–$50,000

Focuses exclusively or primarily on contracting, trades, and construction firms. Understands bonding, licensing, job costing, and retainage — critical for accurate GC valuations.

Best for: Sellers with active project backlog and buyers needing guidance on license transfer and bonding capacity requirements.

Lower Middle Market M&A Advisor

6–10% of transaction value with retainer fees of $5,000–$15,000 per month

Handles $1M–$10M EBITDA deals across industries, including construction roll-ups. Brings structured processes, buyer networks, and experience with SBA and PE-backed transactions.

Best for: GC owners with clean financials, a management team, and $2M+ EBITDA seeking a competitive sale process.

Generalist Business Broker

10–12% of transaction value with standard market minimums

Covers a wide range of small businesses including construction. Suitable for straightforward asset sales but may lack depth on construction-specific due diligence and deal structure nuances.

Best for: Smaller GC firms under $1.5M revenue with simple asset sales and buyers already familiar with the construction industry.

How to Find a General Contracting Broker

  • 1Search the IBBA membership directory filtering for brokers with construction or contracting transaction experience and completed deal references.
  • 2Ask your surety bond agent or construction attorney for referrals — they regularly work with brokers who handle GC transactions.
  • 3Contact regional contractor associations such as AGC or NARI chapters, which often maintain vendor referral lists including M&A advisors.
  • 4Review closed transaction databases on BizBuySell and DealStream to identify brokers who have actually closed general contracting deals in your revenue range.
  • 5Engage a construction-focused CPA or financial advisor for a warm introduction to brokers they've collaborated with on prior GC exits.

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Questions to Ask Any General Contracting Broker

How many general contracting businesses have you closed in the last three years, and what were the revenue ranges?

GC transactions require understanding of backlog, retainage, and bonding — brokers without direct construction experience often misprice deals or lose buyers.

How do you normalize EBITDA for a project-based construction business with equipment, owner compensation, and job-cost fluctuations?

Accurate add-back methodology directly determines your valuation multiple and the final purchase price a qualified buyer will support with SBA financing.

What is your process for handling license transferability and bonding continuity during the sale and transition period?

Failure to address GC license transfer and surety bond replacement early can delay closing or kill a deal entirely in regulated states.

What buyer types do you actively work with for general contracting acquisitions — PE firms, strategics, or individual operators?

Matching your business to the right buyer type affects deal structure, speed to close, and whether earnouts or seller notes will be required.

Broker Red Flags to Avoid

  • Broker cannot explain the difference between billing-in-excess and costs-in-excess or has never reviewed a construction work-in-progress schedule.
  • Broker proposes a valuation based on revenue multiples alone without analyzing backlog quality, contract margins, or retainage balances.
  • Broker has no relationships with construction-experienced SBA lenders or surety underwriters to support financing and bonding continuity.
  • Broker cannot provide references from at least two closed general contracting or construction trades transactions in the lower middle market.

Frequently Asked Questions

What multiple should I expect when selling my general contracting business?

Most lower middle market GC firms sell at 2.5x–4.5x EBITDA. Strong backlog, an independent management team, and diversified clients push multiples toward the higher end.

Can I sell my GC business if the contractor's license is in my name?

Yes, but you must plan early. Some states allow license transfer or grandfather provisions; others require the buyer to obtain a new license before closing, affecting deal timing.

Is SBA financing available for buying a general contracting company?

Yes. SBA 7(a) loans are commonly used for GC acquisitions. Buyers typically inject 10–15% equity, with sellers often carrying a 5–10% seller note to satisfy lender requirements.

How long does it take to sell a general contracting business?

Most GC sales take 12–24 months from preparation to closing. Active project management, clean financials, and early license and bonding planning reduce time significantly.

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