How do I show a buyer that my general contracting company can win work without me?
Show where your last several jobs actually came from, and who handled each step. If estimators, project managers and a sales process carried the work, with repeat clients and referrals alongside, you can point to records. A buyer believes a team more than a promise that you will make introductions.
Start by tracing the jobs. For recent years, list each project, how it was found, who prepared the bid, who won the client and who ran the work. If several people appear on that list, you have evidence. If your name is on every line, take that as a sign of what a buyer will ask about, and begin changing it now rather than explaining it later.
Next, show the process. Is there a routine for chasing bids, pricing work, following up and winning repeat clients? Written steps, templates and a pipeline report all show that the system exists apart from you. Introduce your estimator or project manager to important clients and let them lead meetings. Over time, clients will deal with them directly.
Finally, give a buyer the proof they can check. Repeat customers, referral sources, long-standing relationships with architects, developers or property managers, and a backlog of signed work all help. Be honest about what depends on you personally, and show what you are doing about it. A buyer may suggest a period of overlap after the sale, which is a reasonable thing to discuss with your lawyer and accountant.
Key takeaways
- Trace recent jobs to show who found, priced, won and ran each one.
- Write down the bidding process so it exists apart from you.
- Let your estimator or project manager lead client meetings.
- Be honest about what still depends on you, and show your plan.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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