From the Ground Up: Selling Construction Businesses

Transcript

Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they take a deep dive into one of Transworld’s hottest segments: construction. From small trade businesses to large-scale infrastructure firms, construction companies are a consistent force in the market and, as you’ll discover from this conversation, they’re ripe for sale. Tune in to find out what makes them so appealing to buyers, the common challenges of selling them, and how Transworld brokers can help you navigate complex deals to deliver successful outcomes!

Listing of the Week:

Thomas Milana (Transworld Fort Lauderdale) is selling a well-established, 20-year-old HVAC business in South Florida. With $6.7 million in annual revenue and $600,000 in discretionary earnings, the company specializes in both residential and high-demand commercial retrofits. The asking price is $2.1 million. It includes rolling stock and a strong reputation in the market. For more information, call Thomas at (561) 702-6867 or email [email protected].

Deal of the Week:

Dan Tomlin (Transworld Jacksonville) closed a $2.4 million deal for a construction management company specializing in high-end owner’s rep services. The seller had stringent buyer criteria, leading to a highly selective process with over 40 prospects considered. The eventual buyer, a Navy veteran with shipbuilding experience, was a perfect fit. Creative financing and a working capital structure helped seal the deal. Contact Dan at (904) 800-7355 or email [email protected].

Key Takeaways

[00:24] Why construction is Transworld’s #2 sector by volume and #1 by total dollars.

[02:17] How demand stays strong across residential, commercial, and infrastructure.

[03:47] 4M+ US construction-related businesses, many owned by retiring baby boomers.

[04:50] High-demand specialty trades like HVAC, plumbing, and electrical.

[06:14] Customer concentration and licensing as key deal considerations.

[08:35] Earnouts and seller transitions to ease buyer concerns and improve deal terms.

[10:38] Common industry challenges: seasonality, economic cycles, and cash flow variability.

[12:55] Reasons that work-in-progress and working capital must be carefully calculated.

[14:35] The value of confidentiality and an experienced agent to screen unqualified buyers.

[16:52] Scalable, financeable businesses, with strong buyer interest and high ROI potential.

[18:28] How even small, unsophisticated firms can sell well with strong buyer upside.

[20:45] Listing of the Week: Tom Milana is selling a $6.7M HVAC company in Florida.

[22:14] Deal of the Week: Dan Tomlin sold a construction management firm for $2.4 million.

Links Mentioned in Today’s Episode:

Call us on (888) 719-9098 
Email us at [email protected] 

#thedealboard #transworldbusinessadvisors #realestate #commercial

Quotes:

“[The construction industry] is almost 5% of the US GDP, and it’s the second largest segment that we sell – But as far as dollars are concerned, it is by far the biggest thing.” — @acags [0:03:16]

“If you do have a construction business, both work-in-progress and working capital will have to be not only addressed, but included.” — @acags [0:13:32]

“It’s tough to control the confidentiality piece. You want a Transworld agent – who [does] all the vetting of the buyers up front and then only bringing those who are suited for that particular purchase – to the seller, and protecting the seller from an onslaught of inquiries.” — JT Tatem

[0:15:09]

“[Construction] is an industry that’s not going away. It’s consistent. It performs year after year after year. There may be some [seasonal highs and lows], but it’s never going to stop.” — JT Tatem [0:16:31]

Mentioned in This Episode

• The Deal Board Podcast
• Subscribe to The Deal Board Podcast YouTube Channel
• The Deal Board on LinkedIn
• The Deal Board on Facebook
• United Franchise Group
• Transworld Business Advisors
• Transworld on LinkedIn
• Andy Cagnetta
• Andy Cagnetta on X
• JT Tatem
• Thomas Milana
• Get Cool Profits and Add-On This HVAC Opportunity
• Dan Tomlin