Construction businesses in NSW and VIC are among the most difficult to value — and the most difficult to sell. The multiple range is wide: 1.5× to 3.5× EBITDA, but the lower end is far more common than sellers expect. Project-based revenue, personal builder's licences, and forward order books that evaporate at settlement are the three challenges that define every construction business sale.
What the market is paying
| Business type | Typical multiple | Key driver |
|---|---|---|
| Owner-operated, residential, licence personal to owner | 1.0–1.5× EBITDA | Licence risk + key-person dependency |
| Small team, mixed residential/commercial, owner managing | 1.5–2.0× EBITDA | Some transferability but still owner-dependent |
| Commercial focus, qualified site managers, forward order book | 2.0–2.5× EBITDA | Reduced owner dependency + contracted revenue |
| Specialist subcontractor, long-term head contractor relationships | 2.5–3.5× EBITDA | Recurring B2B work + specialist capability |
The builder's licence problem
In NSW, a builder's licence is held by an individual — not a company. If the owner holds the licence personally, the business cannot legally operate without them after settlement. This is the single biggest structural issue in construction business sales.
There are two solutions: the buyer holds their own builder's licence, or the business employs a licensed builder who will remain post-sale. If neither applies, the buyer pool shrinks dramatically. Addressing this before going to market — by employing a licensed site manager or project manager — is the most important preparation step for a construction business owner.
The forward order book: asset or illusion?
Construction businesses often point to their forward order book as evidence of value. Buyers are sceptical — and rightly so. Signed contracts are worth something. Letters of intent and verbal commitments are worth very little. Buyers will want to see signed contracts, deposit receipts, and evidence that the work is genuinely committed before they assign value to the pipeline.
Specialist subcontractors: a different story
Specialist subcontractors — formwork, structural steel, concrete cutting, facade installation — are a different proposition to general builders. They typically have long-term relationships with head contractors, recurring work, and a specialist skill set that is hard to replicate. These businesses attract higher multiples and a broader buyer pool than general residential builders.
NSW and VIC: where the deals happen
Western Sydney (Parramatta, Blacktown, Penrith) and Melbourne's outer growth corridors (Werribee, Cranbourne, Pakenham) are the primary markets for construction business sales, driven by residential and commercial construction activity. Buyers include trade acquirers, private equity-backed construction platforms, and owner-operators looking to scale.
What to prepare before going to market
Three years of clean financials. A documented forward order book with signed contracts. Evidence of the licence structure and how it will be managed post-sale. A clear picture of the owner's role and a credible transition plan. If the business has a qualified site manager or project manager who will stay post-sale, that is a significant asset — make sure it is front and centre in the information memorandum.
