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Small Construction Business Valuation Formulas:

Construction Businesses: This is a very general business valuation formula or method for established small construction businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing auto repair business for sale.

Construction Businesses (General): Approximately 20 to 30% of annual gross sales

Broker Comments: There are many factors (industry type, etc) that determine the valuing of a construction or contracting business and I would highly recommend getting a business valuation consultation from a professional appraiser. My experience with established small construction and general contracting businesses in the Arizona market is they are not only hard to value, but also can be difficult to sell for a number of reasons. This includes the fact that many construction businesses don’t have a lot of repeat business, many clients are relationship based, they are sensitive to economic cycles, and they are not that type of businesses that can easily be transferred and run successfully if the buyer is not experienced in the trade.