Buying - A Construction Business

You move past top-line revenue to look at real EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). You verify tax returns against bank statements to ensure the profits are real.

Once a target is found, the process enters a "draining" 10-month period of due diligence. This is where most deals succeed or fail.

The journey often begins with an "Entrepreneurship through Acquisition" mindset. Instead of starting from scratch, a buyer looks for an owner ready to retire. For example, you might find a long-established glass work or paving company with a solid local reputation. The initial goal is to find a business that doesn't just look profitable on paper but has a "backlog"—a list of signed contracts for future work—that ensures revenue visibility for the next 6 to 12 months. 2. The Diligence Rollercoaster

A government-backed loan to cover the bulk of the cost.

You look for "vague scopes" in existing contracts—phrases like "as necessary" that could lead to massive cost overruns or disputes after you take over. 3. Structuring the Deal

A critical question is whether the company survives without the current owner. If the owner is the only one who can bid on projects or manage key client relationships, the business may be worthless without them.