• Serdar Kabul

How to Sell Your Structural Engineering Business at the Right Price

People who work in the structural engineering industry know that most firms are small, professional consultancies with very few employees. Indeed, it isn’t uncommon for these businesses to have their founder acting as the sole employee.

Despite their relatively small size, structural engineering firms can bring home a sizable fortune every year, with the average business easily raking in over $1 million. The average revenue per employee for engineering firms exceeds $100,000, but that is on the low-end of the spectrum. Your firm may have higher or lower revenue per employee.

The revenue mostly depends on the type of services you are offering; whether you provide design support systems, assess structural plans, or carry out property inspections. You’ll have to dig deep to figure out the exact figures.

Selling a structural engineering business does have its fair share of challenges that are unique to the industry. For example, you may be required to sell to a registered engineer or a person who has experience in the industry. This can narrow down your pool significantly. Exceptions may be made if the buyer has an existing engineering division within their overall corporate structure.

This is why it is important to have more than a passing familiarity with industry-specific regulations, especially if you’re selling in a different part of the world.

Sellers may need to take the following steps:

Write a summary of the business

Create a 10 or 15-page business summary that provides the buyer with the necessary information they need about your business. This document can help you filter out unreliable buyers at an early stage. The summary should provide the buyer with all the information they need to determine if the business is a good fit for their organizational and growth goals.

Talk to a M/A Broker Who Specialises in Structural Engineering Sales

As mentioned earlier, the structural engineering industry faces unique challenges when it comes to sales. Additionally, post-sale transition in this sector may present additional difficulties. You can contact me for all the necessary expertise needed to maneuver these effectively.

Develop an Accurate Value for the Business

Most owners of structural engineering firms lack the experience needed to come up with an optimal value. It’s important to arrive at a number that will pique the buyer’s interest while maximising your profit. Financial metrics such as assets and liabilities don’t tell the complete story. If you want an accurate valuation, you’ll need to work with an expert in the industry. I perform assessments for structural engineering businesses on a regular basis.

Finding Interested Buyers

Given the small pool of candidates, you can pitch to, finding an interested buyer could be difficult without assistance from a business broker. A specialised business broker should maintain a list of prospective buyers and has a comprehensive understanding of all niches within the structural engineering industry.

I make sure you can approach the ideal buyer with a fine-tuned pitch and custom-tailored marketing materials bound to generate interest. If you are interested in learning more about selling a structural engineering company or want to discuss your specific opportunities, please contact me today.

Serdar Kabul - www.nzbusinessforsale.co.nz

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