What’s your construction business worth? Seven things to consider

There’s no magic formula, but here’s a simple benchmark to use as a starting point when looking to acquire a business under £2m PBT:
1x-4x PBT
+ Assets
– Liabilities
+ Free cash

Factors that increase multiples:
• Solid pipeline of future work
• Low customer concentration
• Clean, consistent financial reporting
• Documented systems and processes
• Strong, stable second-tier management
• Recurring revenue or long-term contracts
• Minimal owner involvement day-to-day