What makes a construction company truly valuable? Is it a full backlog? More equipment? Bigger projects? Or is there something buyers are looking for that most contractors completely miss?

In this episode of Build Business, Better, we share the story of a commercial construction company owner who believed he was ready to retire, until the first offer for his business came in far lower than expected.

Through this real-world-inspired case study, you'll learn why profitable construction companies can still lose millions in business value, what sophisticated buyers look for during a construction business acquisition, and how Enterprise Sage helped transform an owner-dependent company into a business buyers were eager to purchase.

We cover:

• Why a full backlog doesn't always increase your business valuation
• The hidden risks that reduce the value of construction companies
• Job costing, WIP reporting, change orders, and margin management
• Why owner dependency can hurt your exit strategy
• How leadership, systems, and profitability impact a business sale
• Practical ways to increase the value of your construction business before retirement
• What every contractor should know before selling a construction company

Whether you're a general contractor, commercial builder, specialty subcontractor, construction CEO, or family business owner, this episode will help you think differently about building a company that's valuable—not just busy.

If you're planning to retire, considering succession planning, or simply want to maximize the value of your construction business, this episode is packed with practical insights you can start applying today.

Want to know what your business is worth?

Enterprise Sage offers a free Business Value Assessment that takes just 18 questions to complete. It's a simple way to understand what's driving your company's value—and where you may be leaving money on the table.

Learn more at EnterpriseSage.com

Topics Covered:
Construction Business Valuation | Selling a Construction Company | Exit Planning | Business Succession Planning | Construction Business Growth | Commercial Construction | Business Value | General Contractors | Construction Management | Job Costing | WIP Reports | Change Orders | Business Consulting | Contractor Retirement | Small Business Exit Strategy | M&A Preparation | Enterprise Value | Construction Leadership | Business Systems | Owner Dependency

As a business owner, you have no way of knowing whether the sale of your business will actually fund the lifestyle you want. You have never considered the amount of money that would take, the tax implications from the sale, the portfolio management, the risk assessment and how the transition process would even look. You function purely on hope that it will one day "all work out". So allow us to share a case study with you, of a business owner that actually sold his business and now lives the life he couldn't imagine 5 years ago through the struggle.

Kortney Morningstar of Enterprise Sage shares the questions that a business owner should be asking themselves. The answers to these questions are likely standing in between them and achieving a higher value for their business. Do you consider yourself a smart business owner? How many can you answer?

Reach the team at [email protected]

Or reach out to Kortney directly at [email protected]

https://www.linkedin.com/in/kortney-morningstar-313204170/

Ready to know what your business is worth WITHOUT having to speak to someone? Take our FREE business valuation with just 18 questions from the comfort of your own home at:

https://enterprisesage.com/ and click "Start Your Assessment"

New Host Darin Kaiser, Enterprise Sage's VP of Client Acquisiton, sits down with Kate McDonald of Caltius. Caltius specializes in providing $7M-$50M in flexible capital solutions that allow founders to grow without giving up control of their businesses. Many business owners have heard terms like "private equity," "mezzanine debt," or "structured capital," but don't know what they actually mean.

Contact: Host Darin Kaiser https://www.linkedin.com/in/darin-kaiser-071bb9b/

Guest Kate McDonald of Caltius https://www.linkedin.com/in/kate-mcdonald-731904105/

Producer Kortney Morningstar: https://www.linkedin.com/in/kortney-morningstar-313204170/

Enterprise Sage: https://www.linkedin.com/company/enterprisesage/?viewAsMember=true

Can a business owner/founder reignite their passions after years of difficulty and daily toil? Is the lack of creativity and passion preventing their business from growing?

Our host Craig Morningstar sits down with founder and visionary leadership coach Joe Price of Intentional Achievements to delve into the common pains of a business owner after years in operation mode. How does a founder go back to basics, when they were full of excitement and passion?

Could it be as easy as a shift in mentality and a little bit of guidance?

The podcast episode features a discussion with Gary Leneway, a CPA, covering topics such as the impact of accounting on tax work, the role of CFOs in tax work, the importance of year-round tax planning, collaboration with other professionals, challenges in changing accounting professionals, the value of forward-looking tax planning, the impact of accounting on business sale, client fears, and communication with CPAs.

Takeaways

• Tax Planning
• Accounting Challenges

Chapters

• 00:00 Client Fears and Communication with CPAs

Matthew Mapes shares his journey into banking, the common misperceptions between conventional and SBA loans, the process of obtaining a loan, and the different types of SBA loans available. He also discusses the reasons for loan approval or rejection, the role of SBA offices, and the importance of finding the right bank for a business. The conversation covers a range of topics related to SBA financing, business growth, and financial discipline. It provides insights into the process of obtaining SBA loans, common mistakes made by business owners, and strategies for increasing the ultimate value of a business. Additionally, it delves into the evaluation of recurring revenue, customer concentration, and cash flow durability by SBA lenders.

Takeaways

• Banking journey
• Common misperceptions
• Loan process
• Types of SBA loans
• Loan approval/rejection
• Role of SBA offices
• Finding the right bank SBA financing requires financial discipline and strategic planning
• Understanding the financials of a business is crucial for obtaining debt and increasing the business's value

Chapters

• 00:00 Journey into Banking and Common Misperceptions
• 06:25 Loan Approval and Rejection
• 14:12 Different Types of SBA Loans
• 19:17 SBA Loan Guarantees and Credit Lines
• 24:37 Obtaining SBA Loans and Common Mistakes
• 32:11 Evaluating Recurring Revenue and Customer Concentration
• 41:22 Empowering Business Owners and Impactful Advice

Homer Smith, the executive director of Integrated Private Wealth, shares insights on financial services, tax planning, and wealth management. He emphasizes the importance of tax strategies, business valuations, and multi-generational wealth planning. Homer's passion for solving complex problems and delivering value to clients is evident throughout the conversation.

Takeaways

• Tax Planning
• Business Valuations
• Multi-generational Wealth

Chapters

• 00:00 The Journey to Financial Services
• 07:07 Beyond Investment: Tax Strategies
• 12:26 Short-term and Long-term Wealth Improvement
• 17:50 Business Owners and Personal Wealth
• 23:39 Valuing a Business and Timing of Valuation
• 31:12 Life Advice and Impactful Insights

Cheri Kyle shares insights on accounts receivable, emphasizing the importance of effective collections and proactive strategies to prevent delinquency. She highlights the impact of communication, internal processes, and the mindset shift needed to view collections as a revenue strategy. The conversation covers the challenges of accounts receivable (AR) management, the role of external agencies, and the impact of internal processes on collections. It also emphasizes the importance of seeking help and the value of professional expertise in AR management.

Takeaways

• Accounts receivable is earned revenue and should be seen as a revenue strategy.
• Proactive communication and clear terms are essential for effective collections. Vulnerability in seeking help
• Importance of timely follow-up
• Value of professional expertise

Chapters

• 00:00 Introduction and Expertise in Accounts Receivable
• 10:26 Early Warning Signs and Strengthening Client Relationships
• 16:48 Challenges and Strategies for Multiple Past Due Accounts
• 25:00 The Challenge of AR Management
• 31:32 Collaborating with Internal Teams
• 37:08 The Value of AR Management