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Construction company Sale-Prep Checklist

Licenses, documents and fixes buyers look for when you sell a construction company

Know your number

[ ] Recast earnings to SDE (and adjusted EBITDA if above about $1M of earnings)
[ ] Run the construction company valuation calculator and save the brief
[ ] Estimate after-tax proceeds under asset vs stock sale

Licenses and transfer issues for construction companies

Done	Issue	What to know
[ ]	State contractor license	Usually tied to the entity and a qualifying individual. In California a license cannot be transferred to a new entity; a new owner or entity applies for its own license, posts new bonds and shows workers' comp coverage.
[ ]	Qualifier / master license holder	If you are the qualifier (RMO/RME, master plumber or electrician), the license qualification leaves when you do. The buyer needs a qualified person in place before closing, or you agree to stay on for a transition.
[ ]	Bonding	Surety relationships are underwritten on the owner and the company; the buyer needs to carry bonding to keep bonded backlog.

Documents buyers will ask for

[ ] 3 years of financials and WIP schedules
[ ] Backlog with margins
[ ] Bonding program details
[ ] Equipment list and appraisal
[ ] Licenses and qualifiers
[ ] Open claims and warranty items

Fix what buyers discount

[ ] Owner dependence: document processes, delegate selling and scheduling, cut your hours in the work
[ ] Customer concentration: no single customer above about 15% of revenue
[ ] Recurring revenue: convert one-off customers to agreements or plans
[ ] Clean books: separate personal expenses, reconcile monthly, keep 3 years of tax returns ready

Deal structure notes

Price is often split between goodwill and equipment; buyers review work-in-progress and may hold back part of the price against job completion or warranty claims.

Timeline

BizBuySell reports a median 207 days on market for construction businesses sold 2021-2025.

Rules vary by state; confirm licensing and transfer requirements with counsel. General information, not legal or tax advice.

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