Valuation of Construction Companies
There are many reasons to perform a valuation of a construction business, but the most common is an ownership transition. Before the company proceeds with ownership transition—whether fractional interest buyouts, employee stock ownership plans (ESOPs), equity incentives, or outright acquisition—an accurate understanding of the company’s value is necessary. Valuation in the construction industry is based on the same fundamental approaches as other industries, but there are some important differences. The main issue is the cyclical and project-driven nature of the construction business, which makes every year different from the last, and makes financial projections very difficult and uncertain. Because business value is based largely onRead More →