How to Sell Your Construction Company for Maximum Value: What Every Contractor Must Understand
- Construction Champions Podcast
- Dec 8, 2025
- 5 min read
Selling a construction business is not something you do fast or without planning. It is one of the biggest financial decisions a contractor will ever make, and most owners are completely unprepared for it.
In this episode of Construction Champions, Ron Nussbaum sits down with Cameron Bishop, a lower middle market investment banker who specializes in selling construction and home services companies. Cameron works every day with HVAC, plumbing, electrical, roofing, landscaping, pool companies, road construction, mining operations, countertop shops, and more, giving him a direct view into what buyers look for, what kills deals, and what creates real value.
This blog breaks down the lessons from the full conversation so you can understand how buyers think, what you need to fix long before selling, and how to build a stronger business even if you never plan to sell.
Why Most Construction Owners Struggle With Value, Not Revenue
Cameron opens with a truth most contractors never hear:
“Ninety five percent of owners work in their business. But to create value, you must work on your business.”
Construction owners love the field. They love the work. They love the hands-on side of the business. But the problem is that everything buyers value sits in the opposite direction. Owners are so emotionally tied to being in the work that they ignore the strategic parts of the business until it is too late.
Cameron explains that this is why owners in construction struggle more than many other industries. They answer calls from the truck. They solve problems in the field. They manage everything at the end of the day when they are tired, stressed, and drained. That creates a business that runs, but not a business that is valuable.
The Construction Industry Is About to Enter a Massive Wave of Consolidation
According to Cameron, consolidation is already exploding and the construction industry is next.
Here is why:
Baby boomers are retiring faster than ever
Their children do not want to take over the business
Private equity loves recession resistant service industries
HVAC, plumbing, electrical, landscaping, pool, and pest control companies are being snapped up
Maintenance contracts create predictable recurring revenue
There is huge buyer demand and very limited supply
If you run HVAC, plumbing, or electrical, you already know this. Buyers are calling nonstop. Cameron says there are 20 to 25 active buyers looking for these companies at any given time.
But the truth is broader. Road construction. Pavement preservation. Custom fabrication. Commercial service companies. Even niche distributorships. All are becoming highly sought after because they are stable, profitable, and essential.
What Buyers Look for First: The Four Factors That Make or Break Your Sale
Cameron breaks down the four things every buyer checks immediately. If you fail even one, your value drops. Fail two and many buyers walk away.
1. Accounting Quality
This is the number one reason deals fail. Many construction companies have poor bookkeeping. They run cash basis accounting. They do not track costs correctly. They do not understand accrual based reporting which banks and buyers require.
Good accounting takes time to fix. Sometimes years.
2. Owner Dependency
If the owner is the business, the business is not valuable. Buyers want to know what happens if the owner gets hit by the hypothetical bus. If the owner is the main contact for customers or the only one with key knowledge, buyers will require the owner to stay for one to five years or they will reduce the offer.
3. Customer Concentration
If one customer is more than 20 percent of revenue, buyers consider it a major risk. Many private equity firms have a hard rule and will not buy the business at all. Or they will drop the valuation significantly to protect themselves.
4. Gross Profit Margins
Every industry has an expected margin range. Buyers compare your margins to those benchmarks. If you are above average, you may get a premium. If you are below, buyers see it as a yellow flag and will often pull back or walk away.
These four factors are what private equity firms, family offices, and strategic buyers use to judge whether your business is stable and worth paying for.
Why Construction Companies With Recurring Revenue Are Worth More
Of everything buyers chase, recurring revenue sits at the top.
Maintenance agreementsMembership plansService contractsSeasonal maintenanceOngoing repair relationships
Recurring revenue tells buyers three things:
Customers will keep paying
The business has predictable profit
The company is recession resistant
This is why HVAC, plumbing, electrical, landscaping, pool service, pest control, and other service heavy companies are in a buying frenzy. Recurring revenue can increase valuation dramatically.
Why You Cannot Wait Until You Want to Sell
One of the biggest mistakes Cameron sees is owners waking up one day and deciding it is time to sell. That is the worst time to start the process. Proper preparation takes two to three years. Deals take an average of nine to ten months to complete. And the business must be cleaned up long before a buyer ever sees it.
Cameron explains:
You need time to fix accounting
Time to reduce owner dependency
Time to diversify customers
Time to build recurring revenue
Time to build a management team
Time to raise margins
Even if you never plan to sell, building a sellable business gives you options, smoother operations, and a more stable future.
Geographic Hot Spots and Buyer Trends
Buyers do not chase every market the same way. Many have geographic investment theses. Some want the Southeast. Some want the Southwest. Others target mountain states or coastal regions.
HVAC and plumbing are hot everywhere, but buyers still look for population growth, weather demand, and strong local economies.
Regardless of market, the right business can sell. But the best businesses sell fast and for a premium.
What You Should Do Next as a Construction Owner
Cameron recommends:
Clean up your accounting and move to accrual
Build a team so the business no longer relies on you
Reduce dependence on any one customer
Treat recurring revenue like gold
Learn your margins and compare them to the industry
Start planning years before you want to sell
You do not build a business to sell it. You build a business that is sellable because that forces you to build a stronger business today.
About Cameron Bishop
Cameron Bishop is a partner and managing director at Raincatcher, specializing in selling construction and home services companies. He works directly with owners to prepare, market, negotiate, and close transactions that maximize value and protect the seller. Cameron brings decades of acquisition and operational experience and has personally seen the mistakes, the wins, and the paths to higher valuations.
Email: cameron@raincatcher.com
Website: https://raincatcher.com
Helpful Resources for Construction Champions These are tools and places we share because they can help you win on the job and in business.
Join Our Free Community
Meet other builders and leaders in our free Skool group. We share tips, training, and real talk every week.
LiveSwitch — Easy Jobsite Video
I am an ambassador for LiveSwitch because it helps you record clear video on the jobsite. Use it to track progress, do walkthroughs, and protect your business if questions come up later. It is simple, fast, and made for real work in the field. LiveSwitch (Jobsite Video Tool) https://join.liveswitch.com/construction-champions
Listen on Wreaths Across America Radio Hear Construction Champions on national radio. Mondays at 2pm ET and Saturdays at 8pm ET https://www.wreathsacrossamerica.org/Newsroom/WreathsAcrossAmericaRadio
Connect with Ron
LinkedIn: https://www.linkedin.com/in/ron-nussbaum
BuilderComs — Better Client Communication
BuilderComs helps construction teams keep all client messages in one place. No more missed calls or lost messages. Clear, simple, and built for construction.
Construction Champions Podcast Website See all episodes, guests, and updates. https://www.constructionchampionspodcast.com/
How to Sell Your Construction Company for Maximum Value: What Every Contractor Must Understand
Comments