Sell My Contractor Business in Arizona
Eddy Roche, Associate Broker · AZ license BR579487000 · HUB AZ / Sunbelt Arizona
Buyers of Arizona trade companies pay for a crew that can finish the jobs, a license and bond the buyer can take over, and a backlog that is contracted, not hoped-for. Here is how I sell HVAC, electrical, plumbing, roofing, painting, demolition, and general contracting companies.
What contractors sell
A buyer is not paying for the wrap on the trucks. They are buying cash flow that still exists after you leave: a crew that shows up, jobs that are already under contract, and equipment that keeps those jobs moving.
That is HVAC, electrical, plumbing, roofing, painting, demolition, landscaping trades, and general contracting. HVAC files with a maintenance book and a tech bench have their own page: sell my HVAC business Arizona. Recurring landscape-maintenance books sit on sell my landscaping business Arizona. Plumbing files with written service agreements sit on sell my plumbing business Arizona. Roofing files with a maintenance book sit on sell my roofing business Arizona. Shops that build in-house and install in the field, like metal fabricators, sit on sell my manufacturing business Arizona. The file has to transfer. Vehicles and tools are part of the package. They are not the package. If the revenue walks out with the owner, we are selling a job, not a company.
I start with the last three years of tax returns and monthly P&Ls. Then I ask what assigns: ROC or trade license, bond, insurance, crew, vehicles, and the contracted backlog. A confidential valuation is the clean place to start. The longer Arizona valuation write-up is there if you want the method before we talk numbers.
SDE, WIP, and bid backlog
Contractor files price on Seller's Discretionary Earnings, not last year's top line. SDE is the cash a new owner-operator would take home: net profit, plus your salary, plus the add-backs that go away when you leave.
Recurring service work is easier to underwrite than a book that is all bid-and-chase. I still sell project shops. The mix has to be honest. A buyer will pay for contracted WIP with job-cost records. They will haircut a backlog that is hoped-for estimates and handshake work.
I will not invent a market-average multiple on this page. The file decides: recurring versus bid, concentration, crew depth, owner-dependency, and whether the books match the returns. I run your SDE and tell you what this market will actually pay.
Licenses, bonding, and insurance
Arizona contractor sales turn on the Registrar of Contractors file, not on a clever purchase agreement. The buyer often has to qualify for the ROC or trade license, or already hold one. The qualifying party on your license may not be transferable the way a liquor license is.
We map that before marketing. License class. Qualifying individual. Bond. General liability and workers' comp. If the buyer cannot operate on day one, the deal is not a deal. I would rather know that in week one than in escrow.
This is broker work, not legal advice. Your attorney and the registrar have the last word. My job is to put the license and the bond on the table before we take the company public. Service shops without a ROC file live on a different page: sell a service business in Arizona.
Crew versus owner-operator
If you estimate every job, hold the only license, drive a truck, and close every customer, the buyer is buying your calendar. That is an owner-operator file. We can still sell it. The price and the structure have to match the risk.
Crew depth is the transfer. Who stays. Who is W-2 versus 1099. Whether a superintendent or lead already runs the day. Whether the vehicles go with the company or stay in your name. I want a simple org picture and a fleet list before we talk asking price.
Customer concentration is the other haircut. One general contractor or one national account that is a third of revenue is a risk. Diversified bid lists plus a recurring service book are easier to underwrite.
Want a straight read on the company?
Send the last three years of returns, a WIP schedule, and who holds the license. I will tell you what I see on price, bonding, and whether the file transfers. No listing appointment required.
Confidential process
Word that a contractor is for sale travels. Techs talk. Subs talk. A GC that hears it early starts taking other bids.
I do not put your name, yard address, or crew list on a public listing. Marketing is a teaser. Buyers sign an NDA before they see identifying information. You decide when the crew hears it.
Usually that is after we have a serious buyer and a path to close, not on day one of marketing. How I run the full sale is on the process page.
If you are even thinking about a sale
You do not need to be ready to list. Send the returns, a WIP snapshot, and who runs the crew. I will tell you what I see: price range, license risk, and whether the timing is right.
That is a conversation. Not a listing appointment. More about how I work. If you are still choosing representation, read how to choose an Arizona business broker.
Frequently Asked Questions
How is a contractor business valued in Arizona?
I price on Seller's Discretionary Earnings. Then I look at recurring service versus bid work, customer concentration, crew depth, and how much the company still needs you. A maintenance book that assigns is worth more than a bid list that lives in the owner's head.
Can the buyer take over my contractor license?
Arizona ROC and trade rules decide that, not the purchase agreement. The buyer often has to qualify for the license or already hold one. We map the license, the qualifying party, and any bond before we market the company. I do not list a file and hope the registrar cooperates later.
What counts as WIP and backlog on a contractor sale?
Contracted work with a signed job and a cost record. Not a verbal that might land next month. Buyers read job cost, retainage, and percent complete. A hoped-for pipeline is a story. A contracted backlog is an asset.
Will my crew find out the company is for sale?
Not from the listing. Marketing starts as a teaser. Buyers sign an NDA before they get the name, the yard address, or the crew list. You decide when the people on the trucks hear it.
How long does it take to sell a contractor business in Arizona?
Clean books and a crew that already runs the day shorten the file. Messy WIP, missing job costs, and an owner who is the only license slow it down. It is still months, not weeks. Listing agreements I use on contractor files typically run 270 days. That is a working window, not a promise.
Why work with Eddy Roche on a contractor sale?
I sell contractors and service companies across Arizona. I am Eddy Roche, Associate Broker BR579487000, at HUB AZ Brokers and Sunbelt Arizona. I price on SDE, screen buyers, and keep the sale confidential until you say otherwise.
Ready to talk about the company?
Confidential. No obligation. I work contractor and trade deals across Arizona.