Sell or Buy a Construction Company in Illinois

Construction Business Overview

Illinois has over 20,000 construction companies ranging from general contractors to specialty trades. The construction industry is vital to Illinois' economy, with major projects in Chicago and infrastructure development statewide.

Construction businesses include general contractors, specialty contractors, home builders, remodelers, and commercial construction companies. These businesses require attention to licensing, bonding, insurance, and workforce management.

Construction Business Valuation

Valuation Method	Multiple Range	Notes
SDE Multiple	2.0x - 3.5x	Seller's Discretionary Earnings
EBITDA Multiple	3.5x - 5.5x	For larger operations
Backlog Value	Varies	Contracted work in progress

Key Valuation Factors

Backlog: Contracted work and pipeline value
Customer relationships: Repeat clients and referral sources
Workforce: Skilled labor retention and availability
Equipment: Fleet condition and replacement costs
Bonding capacity: Surety relationships and limits

Selling a Construction Company in Illinois

Key Selling Considerations

Backlog documentation: Contracted work and profit margins
Equipment appraisal: Professional valuation of fleet
Workforce transition: Key employee retention planning
Bonding transfer: Surety relationship considerations
License transfer: Contractor license requirements

Regulatory Compliance for Sellers

Contractor Licensing: Illinois roofing contractor license, local requirements
Bonding Requirements: Surety bond transfer or replacement
OSHA Compliance: Safety records and training documentation
Insurance: Workers' comp, liability, and vehicle insurance

Complete Selling Guide →

Buying a Construction Company in Illinois

Key Buying Considerations

Backlog analysis: Quality and profitability of contracted work
Equipment assessment: Condition and replacement costs
Workforce evaluation: Key employees and skill levels
Bonding capacity: Ability to obtain surety bonds
Customer relationships: Repeat business and referrals

Due Diligence Checklist

Financial review: 3-5 years of job costing and financials
Backlog review: Contracted work, margins, completion status
Equipment inventory: Complete list with maintenance records
Safety records: OSHA compliance and incident history
License verification: All required licenses and permits

Complete Buying Guide →

Construction Business Types

🏗️ General Contractors

Full-service construction management.

🏠 Home Builders

Residential construction and development.

🔨 Remodelers

Home renovation and remodeling.

🏢 Commercial

Commercial and industrial construction.

❄️ HVAC

Heating and cooling contractors.

⚡ Electrical

Electrical contractors.

Construction Business Resources

Industry Organizations

Regulatory Agencies

Frequently Asked Questions

Construction companies are typically valued at 2.0-3.5x SDE or 3.5-5.5x EBITDA. Key factors include backlog quality, customer relationships, workforce stability, equipment condition, and bonding capacity. Companies with strong backlogs and repeat customers command higher multiples.

Surety bonds are critical for construction companies. Buyers must establish their own bonding relationships, which requires financial strength and industry experience. The seller's bonding capacity and history can impact valuation and transition planning.