Specialist valuations for trades, sub-contractor and construction businesses.
For business sales, related-party transfers, group restructures and succession. Methodology that handles project-based revenue, working capital and licence dependency.
Trades and construction business valuations require methodology that handles project-based revenue cycles, working capital intensity, licence and certification dependency, and the variation between recurring service revenue and project revenue. Prismi prepares evidence-led valuations for electrical, plumbing, building, HVAC, civil and specialist trade businesses.
Trades and construction-specific factors
Working capital is often a large component of the enterprise value — receivables, work-in-progress and retentions sit on the balance sheet and affect both the methodology and the consideration structure. Licence and certification dependency means the transferability of the business depends partly on the new owner's credentials. Project pipeline and forward order book are key inputs to the supportable position.
Methodology considerations
Capitalisation of maintainable earnings is the primary method, with careful normalisation of owner-operator remuneration and project margin smoothing. Where the business has a service component (maintenance, recurring contracts), that segment may be valued separately. Net asset value provides cross-check, particularly for businesses with significant plant and equipment.
Common questions.
How is the work-in-progress treated in the valuation?+
WIP is typically separated from the goodwill component. The methodology treats WIP as part of the working capital position, valued at the realisable amount, with the trading goodwill valued separately. This affects the consideration structure for the transaction.
Discuss your engagement.
Fifteen-minute discovery call. We confirm scope, tier and indicative fee.
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