Let’s say someone offered to buy your business tomorrow.
Not just a casual enquiry. A serious offer on the table.
Would you know what it’s worth?
Most construction business owners don’t. Even the ones turning over seven figures.
And that’s not a criticism. It’s a reality of the day-to-day. You're on site, juggling quotes, managing teams, keeping jobs moving. There's rarely time to sit down and think, “If I sold this thing, what would it go for?”
But here’s the truth: understanding the value of your business isn’t just for when you want to sell. It’s about building something that gives you options and that doesn’t fall apart when you step away.
Let me show you what that looks like through the story of a deal that caught my attention.
From Private Equity to Scaffolding
When Mark (not his real name) first got in touch, I didn’t know much about him.
He said he’d found me on LinkedIn and wanted to talk. Said he liked something I’d written about helping trades businesses grow to £20m.
So we jumped on a call.
And straight away, I could tell. Mark wasn’t your typical scaffolding firm owner.
Because he wasn’t a scaffolder at all.
His background was in private equity, buying and growing businesses from behind a desk, not a building site. But now he was stepping out on his own, building a group of construction companies using the same investment model.
His first move?
Buying a scaffolding firm in Reading.
20 years old. £6 million turnover. £1 million profit. Founders had just retired. A stable team still in place.
Sounded decent, but I was curious how he valued it.
That’s when he walked me through the deal.
The Deal: £6 Million Over 5 Years
Mark didn’t just throw down a big lump sum.
He structured it smartly:
The total was £6 million, but paid out over five years. The biggest chunk, £2 million, comes at the end of the term.
Why?
Because he wasn’t buying hype. He was buying cash flow and predictability. That’s how these deals are done when real money is on the line.
What really stood out though was this:
Mark told me:
“The owners were out, but the business didn’t miss a beat. That’s exactly what I look for.”
And that’s where this gets relevant to you.
What Makes a Construction Business Valuable?
It’s not just turnover.
In fact, turnover can be misleading. Especially in construction, where cash flow is lumpy, margins are tight, and risk is everywhere.
Here’s what buyers actually look at:
In Mark’s case, it wasn’t just that the business made £1 million a year. It was the confidence in those numbers. The fact that everything still worked once the owners had stepped away.
That’s what made it valuable.
Understanding Valuation Methods
Let’s break this down further.
There are a few ways construction businesses get valued, but for most small to mid-sized firms, it comes down to two main methods.
1. EBITDA Multiple
This is the most common. Take your earnings (EBITDA), then multiply it by a figure, usually between 2x and 6x.
That multiple depends on:
So if your business makes £500k EBITDA and is relatively low-risk with a decent team, you might get a 4x multiple, putting you at £2 million valuation.
But if the business falls apart when you’re off for a week, you’re lucky to get 2x.
2. Asset-Based Valuation
Used when the business owns a lot of valuable equipment, stock or property.
In this case, a buyer looks at the net book value of your assets, adds some goodwill (if justified), and comes to a figure that way. This is common in plant hire, scaffolding, civil works, trades with heavy kit.
Other methods exist, like discounted cash flow or revenue multiples, but they’re more common in larger firms or fast-growth businesses with recurring income.
What Devalues a Business?
Let’s flip it.
What kills your business value?
This is the stuff that makes a buyer walk away, or slash their offer in half.
And even if you’re not selling, it’s these same issues that make your business hard to grow, hard to manage, and exhausting to run.
Start Here: Three Quick Checks
Get your last 12 months of accounts. Adjust for one-offs and add back depreciation, interest, etc. This is your baseline profit.
List your vehicles, machinery, equipment, and stock. Rough values will do. Just get clear on what’s in your yard.
If you took four weeks off, zero calls, no site visits, what would break?
If the answer is “everything” that’s the first thing to fix.
The Big Picture
You might not be thinking about selling right now.
But whether you want to sell, scale, or simply take a proper holiday, knowing what your business is worth puts you in control.
It shows you what’s working, what’s holding you back, and where to invest your energy.
So the next time someone asks, “What’s your business worth?”
You won’t have to guess.
You’ll know.
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