Construction Valuation Template

Once your inputs are set, work through each method sheet in order. The Income Approach will give you the most weight; review the EBITDA multiple range and select the one that matches your company — larger contractors with recurring clients and strong backlog command higher multiples than smaller project-by-project shops. The Market Approach lets you compare your numbers against recent industry transactions. The Asset Approach calculates your equipment fleet and net assets — enter each major piece of equipment at what you could sell it for today, not the depreciated book value on your balance sheet.

The income approach is the primary method for valuing a going-concern construction business. Buyers are paying for future cash flows, not past ones, so the quality and predictability of your backlog matters more than last year's revenue. A contractor with $3M in EBITDA and 18 months of backlog from municipal contracts will command a higher multiple than one with the same EBITDA from a handful of residential projects. The asset approach sets the floor — particularly relevant for equipment-heavy specialty contractors where a $500K excavator fleet represents real liquidation value. For most sales, the market approach using recent comparable transactions cross-checks the income approach rather than driving it.