Signed backlog and its margin
Contracted work with documented gross margin is the strongest asset a contractor has. Backlog priced too thin is a liability, not value.
El Paso Owner's Guide · General Contractors & Specialty Trades
How to Sell a Construction Company in El Paso, Texas
Construction companies sell on backlog, bonding, and bench strength. Buyers are not paying for last year's biggest job — they are paying for signed work, an estimator who prices it right, and crews that show up after you are gone.
- 2.5×–4.5×
- Typical multiple of earnings for a profitable contractor
- $5M
- SBA 7(a) financing available to qualified buyers
- 100%
- Confidential — clients, crews, and GCs never know
The Local Market
What buyers pay for in an El Paso construction company
El Paso's population growth, military and municipal spending, and industrial development keep capable contractors busy. Buyers include regional contractors expanding into the market and operators with capital, and they read your work-in-process schedule before anything else.
Work-in-process accuracy
Over- and under-billings, percentage-of-completion accuracy, and change-order discipline tell a buyer whether the reported profit is real.
Bonding capacity and licensing
Surety relationships, single and aggregate limits, and license structure determine what work a buyer can pursue — and how quickly they can pursue it.
Estimators, superintendents, and crews
A company where the owner estimates, sells, and supervises is a job. Documented crews, retained key staff, and repeat GC or owner relationships raise the multiple.
Free Estimator · No Email Required
What is my El Paso construction company worth?
Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs. Owned equipment and real estate are generally addressed separately.
$180,000 / year
$40K$1.2M
Which of these are true today?
Illustrative Range
Estimated enterprise value
$486,000 – $819,000
That’s roughly 2.7× to 4.5× your owner’s earnings, before any real estate you own.
Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.
Illustration only — not an appraisal or an offer.
Step by Step
The six steps that get a construction company sold — in that order.
- 01
Build a contractor-grade financial package
Three years of P&Ls, tax returns, and balance sheets, reconciled, plus work-in-process schedules, completed-job profitability, backlog with margins, revenue by client, equipment list, and bonding letters.
- 02
Commission an independent, certified valuation
Not a broker's opinion. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on. It sets a defensible price and survives diligence.
- 03
Get out of the estimating seat
The single most valuable transferable asset in construction is an estimator other than the owner. Buyers pay for pricing that continues without you.
- 04
Fix what diligence will find
Licensing and its transferability, bonding continuity, insurance and workers' compensation history, lien waivers and retainage, subcontractor agreements and classification, equipment titles and financing, warranty exposure, and unpaid taxes.
- 05
Market it confidentially — never publicly
No word to your clients, your crews, your subs, or the GCs you bid against. We market blind on capability and financial profile to vetted buyers under NDA.
- 06
Negotiate, survive diligence, and close
Offers, escrow, WIP and quality-of-earnings review, bonding and license transition, contract assignments and consents, key-employee retention, equipment schedules, and funding. We stay on it through closing.
Costly Mistakes
Six mistakes that cost construction company owners real money.
Selling with an empty backlog
Timing matters more here than in almost any category. A contractor with signed work and a healthy pipeline sells for a materially different number than one waiting on awards.
Sloppy work-in-process accounting
If billings and costs do not reconcile, buyers assume the profit is overstated — and they price for the worst case they can imagine.
Being the only estimator
Nothing shrinks a construction multiple faster. If pricing walks out the door with you, the buyer is purchasing goodwill they cannot use.
Ignoring how licensing and bonding transfer
A buyer who cannot bond or license the work cannot close. These items must be mapped before marketing, not discovered in week six.
Loose subcontractor documentation
Classification, insurance certificates, and lien waivers all get examined. Gaps become indemnity fights and holdbacks.
Chasing revenue at thin margins
Buyers price earnings, not volume. Low-margin work adds risk and can actually reduce your valuation.
Questions Owners Ask
Construction Company owners ask us these first.
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Profitable contractors commonly trade between roughly 2.5 and 4.5 times owner's discretionary earnings, with signed backlog, bonding capacity, an estimator in place, and diversified clients at the top of that range. Equipment and real estate are typically addressed separately. Only a certified independent valuation survives a lender's underwriting.
Substantially — provided it is signed and profitable. Buyers verify contracted margin through your work-in-process schedule, and thin or unsigned backlog gets little credit.
Licensing generally does not transfer automatically, and surety relationships are underwritten to the new ownership. Both timelines belong in the closing schedule from the start. Confirm license specifics with your own attorney.
Equipment necessary to perform your work is usually included in enterprise value, with financing paid off at closing. Excess equipment, trucks, and any owned yard or real estate are commonly handled as separate items.
Qualified buyers can access SBA 7(a) financing up to $5 million. Lenders scrutinize WIP, bonding, and licensing closely, so clean financials and a defensible independent valuation matter. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.
Not from us. Your company is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn who you are, and client or GC conversations happen only at a stage you approve.
Where we work
Construction Company owners we represent across El Paso, West Texas, and southern New Mexico
Whether your construction company sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.
- El Paso
- West El Paso & Upper Valley
- East El Paso
- Northeast El Paso
- Central & Downtown
- Horizon City
- Socorro
- San Elizario
- Clint & Fabens
- Canutillo
- Anthony, TX & NM
- Fort Bliss corridor
- Las Cruces, NM
- Sunland Park, NM
- Doña Ana County
- Alamogordo & Deming, NM
- Van Horn & Fort Hancock
- Midland & Odessa
Construction Company Owners · Confidential
Find out what your company is actually worth.
One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.
- Confidential — nothing is shared or listed without your written consent.
- A reply within one business day, usually the same afternoon.
- No fee, no obligation, and no pressure for the first conversation.