Contractor Exit Strategy 3 of 6: Strategic Sale to an Outside Buyer

Every contractor wants a strategic sale to an outside buyer.

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Specifically, an outside buyer that sees such a strong strategic fit with their business that they are excited to pay a 6X earnings multiple of the best performing year the contractor has had during the last three years in cash. 

Succession: Exit Strategy 3 of 6 - Strategic Sale to Outside Buyer.

Fact: Most media coverage of deals is either a strategic sale or a catastrophic liquidation through bankruptcy. This can skew a contractor’s view of the market.  

Fact: Only a small percentage of ownership transitions could be considered strategic sales with high valuation multiples.

Fact: The only way a high valuation makes sense for the buyer is if the contractor has either a competitive position, technology, or process that can be scaled up significantly with access to more capital or other operational assets the buyer has. The ROI (Return-on-Investment) still must pencil out for the buyer.  

Fact: Few contractors have truly built highly scalable competitive advantages that make this type of exit an option.  

Fact: If you have truly built scalable competitive advantages that require more capital to execute then an outside strategic buyer is your only option.  


Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

The Process of Winning CMAR Projects
Everything you do is a process to be managed rigorously. Winning CM @ Risk projects is no different.
Aligning Strategic Market Choices and Project Delivery Methods
Choosing which market(s) to compete in and which to avoid are the most highly leveraged decisions the leaders of construction businesses make. Integrated with those is choosing the optimum project delivery method(s) to focus on.
Tracking Change Progress (The Funnel): Basic Status Categories
Managing changes effectively means that you need clear visibility across all projects. While the workflow will vary by project, the key progress milestones in your internal process will remain fixed.