General contracting encompasses firms that manage residential, commercial, or mixed-use construction and renovation projects, coordinating subcontractors, suppliers, and labor to deliver projects on time and on budget. The industry is highly fragmented at the small and lower middle market level, with the majority of firms being owner-operated and generating under $10M in annual revenue. Demand is driven by housing starts, commercial real estate activity, infrastructure investment, and renovation spending, making the sector sensitive to interest rate cycles and local economic conditions.
Who sells these: Owner-operators aged 55–70 approaching retirement, founders looking to exit after building a regional reputation, and second-generation owners without a succession plan
2.5–4.5×
Market multiple range
12–24 months
Avg. exit timeline
$1M–$5M
Typical deal size
SBA Eligible
Broader buyer pool
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Get free scoreTypical acquirer profile for General Contracting businesses
An entrepreneurial individual with construction industry experience, an existing regional contractor seeking geographic or service expansion, or a private equity-backed platform executing a roll-up strategy in the construction sector
General Contracting businesses typically sell for 2.5–4.5× EBITDA in the $1M–$5M range. Key value drivers include: Documented and diversified backlog with signed contracts across multiple project types and clients; Strong bonding capacity and clean insurance history with no major claims; Experienced management team or foremen capable of operating independently of the owner.
Start by preparing your exit: Compile three years of reviewed or audited financial statements with job costing detail; Document all active contracts, backlog, and pipeline with associated margins and timelines; Ensure all general contractor licenses are current and assess transferability requirements by state. The typical buyer is: An entrepreneurial individual with construction industry experience, an existing regional contractor seeking geographic or service expansion, or a private equity-backed platform executing a roll-up strategy in the construction sector
The average exit timeline for a General Contracting business is 12–24 months. This includes preparation, marketing to buyers, due diligence, and closing.
Common value killers for General Contracting businesses include: Revenue concentration in one or two clients or project types creating pipeline risk; Owner holding the primary contractor's license with no other licensed personnel on staff; Inconsistent bookkeeping, commingled personal expenses, or lack of project-level financial reporting; Pending litigation, unresolved mechanic's liens, or open warranty disputes on completed projects; High employee turnover or dependence on a few key subcontractors without backup relationships.
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