Civil engineering and contracting businesses for sale

Excavators, loaders, dumpers, lorries and trailers can make up a significant part of the value — and of the debt. Ask for a machinery list with year, operating hours, condition and service records, and check what is owned, leased or financed. An ageing fleet can mean major replacements shortly after the purchase. Consider an independent valuation of the largest machines, and look at the price of the business and the value of the machinery separately.

Contractors live on their order book. Go through the largest jobs: client, contract sum, expected margin, progress and any disputes about extra work. Much Danish construction work is carried out on standard terms such as AB 18, and clients often require security in the form of a bank or insurance guarantee. Ask which guarantees have been issued, by whom, and what happens to them on a change of ownership. If public tenders make up a large share of revenue, check which framework agreements are running and when they go out to tender again.

Experienced machine operators and foremen are hard to replace, and they transfer on their existing terms. Drainage work requires authorisation from the Danish Safety Technology Authority and a responsible qualified person — check that one is in place after the handover. Also look into any environmental issues on the firm’s own yard.

• Machinery list with year, operating hours and finance.
• Order book job by job and work in progress.
• Guarantees issued and open disputes or defect claims.
• Framework agreements and tenders with expiry dates.
• Drainage authorisation and responsible person, where relevant.

Read the general advice on buying a trade business, and the difference between an asset and a share purchase.