Who Usually Buys
- Larger builders
- Want crews, a license and relationships in the East Bay.
- Specialty subcontractors
- Move up into general work by buying a firm that already holds the jobs.
- Private equity backed platforms
- Look at firms with about a million dollars or more in EBITDA.
Backlog Is Not Profit
A full calendar looks good, but buyers price what the work earns. They compare past bids with final job margins and ask why any job lost money.
Owners often count a loan or the sale of a truck as income. Buyers catch that in diligence, and it costs trust. Keep one time items out of your cash flow.
Who Holds the Relationships
If you personally win every job, buyers treat the revenue as tied to you and discount it. Show project managers, estimators and a foreman who clients already know.
Giving a manager a small equity share can help, but write down voting terms first. A minority holder with no agreement can surprise you at closing.
Records That Help a Sale
- Three to five years of financials that match your tax returns
- A list of equipment with titles and serial numbers
- Bonding history and any open claims
- Employee roster with pay and role
Do Not Let Work Slip
Keep bidding and finishing jobs during the sale. A falling backlog makes buyers wary, and a sudden spike right before listing looks staged. Steady results sell best.
Timing and Structure
Most deals this size are asset sales, so a buyer takes equipment and goodwill, and you usually keep cash and receivables for finished work. See how the price is split in asset allocation and Form 8594.
The Oakland side of closing is covered in Oakland business tax account. When you want numbers, ask for a valuation.