A Blueprint for Valuing Construction Companies

Determining the value of a construction company is complex and requires a deep understanding of industry-specific challenges and financial metrics. Whether a construction business owner is planning a sale or merger, securing financing, preparing for succession, or navigating legal matters, an accurate valuation is essential. Professional valuation experts analyze a range of factors unique to construction businesses — including homebuilders, commercial real estate developers, subcontractors and specialized tradespeople — to provide reliable assessments of value. Unique risks The construction industry is inherently cyclical, making economic fluctuations a significant risk. Market downturns can lead to project delays or cancellations, affecting cash flow and profitability. Weather conditions and natural disasters further contribute to the industry’s unpredictability, as they can disrupt project timelines and escalate costs. Another major risk factor is...

Construction Company Anti-Fraud Checklist

According to the Association of Certified Fraud Examiners’ Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse, organizations victimized by fraud lose a median $130,000. But construction companies, in particular, are even harder hit, with a median loss of $227,000. What can you do to protect your construction business? Adopt this construction company anti-fraud checklist. Construction Company Anti-Fraud Checklist: Ways to Tighten Controls An effective strategy for minimizing fraud is to tighten your internal controls. Make sure the following are part of your policies and procedures: Surprise audits and jobsite visits. These visits can not only help detect fraud, but also send a strong message that combating fraud is a priority — which is a powerful deterrent. Segregation of duties. Avoid situations in which one person...