What Is My Construction Company Worth?

Construction companies are complex to value — project-based revenue, bonding requirements, equipment fleets, and workforce management all factor in. But well-run construction companies with strong backlogs and bonding capacity are valuable businesses.

Typical Valuation Ranges

Most construction companies sell for 2x to 4x SDE or 3x to 5x EBITDA for larger operations.

Factors that push toward the higher end:

• Strong bonding capacity ($5M+ per project)
• Diverse project portfolio (commercial, government, industrial)
• Consistent backlog (6–12 months)
• Experienced project management team
• Specialized capabilities (environmental, government, healthcare)
• Equipment fleet in good condition
• Revenue above $5M with consistent margins

Factors that push toward the lower end:

• Owner estimates and manages every project
• Residential-only or single project type
• No bonding capacity
• Thin or inconsistent margins
• Concentrated customer base (one GC or owner)
• Aging equipment
• No backlog

Key Value Drivers

Bonding capacity is a critical differentiator. Companies that can bond larger projects access a tier of work unavailable to smaller operators. Bonding capacity is built over years through financial performance and is highly valued.

Backlog provides revenue visibility. Buyers want to see contracted work extending 6–12 months.

Project management team — companies where the owner can step away from day-to-day project management are dramatically more valuable.

Margins — construction margins are famously thin. Companies consistently delivering 8–12%+ net margins on projects demonstrate estimating discipline and execution capability.

How to Increase Your Value

1. Build bonding capacity. Work with your surety to increase per-project and aggregate limits through consistent profitability and clean balance sheets.
2. Develop your project management team. PMs, superintendents, and estimators who operate independently increase transferability.
3. Diversify project types. Mix of commercial, government, and private work reduces cyclical risk.
4. Maintain a healthy backlog. Consistent project pipeline demonstrates market demand.
5. Track job costs meticulously. Per-project profitability data gives buyers confidence in your estimating and execution.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.