Who Buys a Contractor
- Larger contractorWants crews, a license and a backlog it can add to its own.
- Experienced tradespersonWants steady work and proof the customers stay with the company.
- Investor or roll upLooks for repeat service work and a manager who stays on.
The License Is Not a Product
A California contractor license belongs to the license holder and the qualifying person, and it does not simply pass to a buyer.
Ask your attorney early how the buyer will operate, whether the qualifier stays on and what the state requires on a change of ownership.
Backlog and Repeat Work
Signed jobs and repeat customers carry more weight than a good bid pipeline. Buyers ask how much work is under contract, how much comes from a few builders and what the margins were on finished jobs, not just sales.
Crews, Bonds and Claims
Buyers want to know who runs the crews, how long they have stayed and whether your name is the reason customers call. Show open warranty claims, bonding and insurance history. A clean record helps, and a pending dispute needs a plain explanation.
Equipment and Vehicles
List trucks, trailers and tools with age and loan balances. Settle which personal vehicles transfer. Buyers value what produces revenue, not extras. For larger deals ask how seller notes and SBA loans may affect who can afford the company.
Safety and Insurance History
Read about payroll accounts too. Buyers ask about your workers compensation history, any large claims and your safety program. A clean record helps the price, and a lender will also check the same file.
Getting Ready
Document your estimating process, clean up job costing and then request a valuation call to see a range.