What’s a Construction Business Worth in Australia? Let’s Talk Multiples (and Risk)

If you’re running a construction business—residential, commercial, civil, or specialist trades—you’ve probably wondered: What could this thing actually sell for?

The answer? It depends. Not just on your earnings, but on how risky the business looks from the outside. And in construction? Risk is baked into the cake.

Typical Valuation Multiples (EV/EBITDA)

Here’s what the market usually pays for Australian construction businesses:

Residential or commercial builders:

🔨 2.5x to 4.0x EBITDA

Higher if you’ve got repeat clients and projects booked 6–12 months ahead.

Civil & infrastructure contractors:

🚧 3.5x to 5.5x EBITDA

Especially if you’ve got prequalification, government work, or are servicing essential services/utilities.

Trade contractors (plumbing, electrical, fitout, roofing):

🛠️ 2.0x to 3.5x EBITDA, depending on scale and team setup

Smaller, owner-reliant businesses may trade closer to 1.0x–1.5x net profit.

What Buyers Are Really Thinking

Construction businesses are inherently more risky than other sectors. Margins can evaporate on one bad job. Cash flow’s a juggling act. And future work is never guaranteed—until it’s done and paid.

So buyers run the numbers differently. And here’s the uncomfortable truth:

For many buyers, it’s cheaper to compete with you than to buy you.

If they’ve got crews, licenses, and contacts, they might just go after your clients rather than buy your business. Especially if:

You don’t have contracts in place

You are the business (no team, no systems)

Or they think they can out-bid you and win work directly

That’s why the strongest premiums go to businesses that are:

Systemised, with project managers and admin staff

Tied into recurring contracts or government panels

Known for quality and reliability, with a visible pipeline

What Increases Value?

Projected earnings backed by real contracts

A capable second-tier team running operations

Low client concentration

Tight financial reporting and job costing

Well-maintained plant, equipment, or fleet

Final Word

Construction businesses can sell—and at solid multiples—but only when the buyer sees a clear runway, low risk, and something they can’t easily build themselves.

If your edge is relationships, team, or systems—they might buy.

If it’s just hustle and you’re still on the tools—they’ll probably bid against you instead.