Selling a Consulting Engineering Firm: What Buyers Want—and What Holds Them Back

If you own a consulting engineering business, you’re sitting on an asset that can be valuable—but only if it’s transferable. And that’s where most deals get stuck.

Buyers aren’t just looking at the revenue or EBIT. They’re asking a simple question:

“What happens when the principal leaves?”

What the Market Pays

In Australia, consulting engineering firms typically sell for:

3.0x to 5.0x EBIT, sometimes higher for niche or government-contract-heavy firms

But hitting the higher end requires more than strong numbers.

The “Golden Handcuffs” Problem

The biggest hurdle in selling an engineering consultancy?

You, the founder, are the rainmaker.

You hold the client relationships.

You sign off on the work.

You’ve got 20+ years of trust built into your name.

That creates what we call “golden handcuffs.” You’ve built a great business—but it only works if you stay. And buyers don’t want to buy a wage bill disguised as a company.

Unless you’ve built a second-tier leadership team and clients who buy the firm, not just you, you’ll either:

Get a lower price

Or be tied into an earnout or multi-year handover

What Increases Value?

Established PMs or practice leads who can carry clients

Long-term contracts, particularly in infrastructure, government, or essential services

ISO or quality assurance certifications

Specialisation (structural, environmental, fire, etc.)

Recurring or retainer-style revenue

Final Word

If you’re thinking of selling in the next few years, start now by removing yourself from the centre of delivery. That’s how you break the golden handcuffs—and turn your firm into something a buyer can run without you.