Drainage contractors serve homeowners, builders, developers, property managers, commercial property owners, and other customers dealing with water-management issues.
An established drainage company can be attractive to buyers when it has a strong reputation, experienced crews, repeat customers, and efficient operations.
Buyers may evaluate:
Drainage businesses may generate revenue through:
Document which services generate the most revenue and profit.
Depending on the services offered, equipment may include:
Analyze the percentage of revenue generated by your largest customers.
A diversified customer base can reduce buyer risk.
Prepare:
Also identify legitimate owner add-backs and maintain supporting documentation.
Truforte’s How Do Business Brokers Value a Business? explains how SDE and other valuation approaches can be used to understand business value.
Value depends on earnings, customers, service mix, equipment, reputation, growth, and other factors.
Repeat customers and maintenance-related relationships can provide greater revenue stability.
Equipment can contribute to the overall transaction value depending on condition and usefulness.
Potential buyers include landscaping companies, excavation companies, contractors, restoration companies, entrepreneurs, and strategic buyers.
Organize your financials, customer information, equipment records, contracts, employee information, and operating procedures before going to market.
Related reading: Selling a Stormwater Management Business in Florida and Selling an Excavation Business in Florida.
Planning your next move? Read our guide on building a smart exit strategy for your business.