Selling Your Construction Company: The Bonding Capacity Challenge
Your bonding capacity is one of the most valuable—and most overlooked—assets in a construction company sale.
Maria Rodriguez
Construction Company Builder
The Hidden Value in Your Bonding Relationship
When I sold my general contracting business, the buyer was not just buying my equipment and backlog—they were buying my bonding capacity. Here is why that matters.
Understanding Bonding in M&A
Bonding capacity is based on your company's financial strength, track record, and relationship with your surety. New companies often cannot get bonded for large projects, which limits their growth.
When you sell, the buyer typically cannot simply take over your bonds. They need to establish their own relationship with a surety, which can take months and may result in lower initial capacity.
How to Maximize Value
What Buyers Look For
Maria Rodriguez grew a general contracting business from $500K to $15M revenue before selling to a regional competitor.