Key Takeaways
- Intelligent operations are crucial for construction companies aiming for market expansion or planning an exit.
- Connected, data-driven operations enhance efficiency and value, enabling companies to scale smartly or prepare for a successful sale.
- Successful construction companies assess business value, leverage real-time data, and avoid replicating inefficiencies to thrive in today's market.
In construction, growth is rarely linear — and it’s never easy. For contractors eyeing market expansion or planning an exit, one imperative stands out: operate intelligently.
Building with intelligence isn’t about adding more tools. It’s about creating connected, data-driven operations that make your company faster, leaner, and more valuable — whether building to scale or building to sell.
The best-positioned construction companies are those who can:
- Assess business value and use it to inform growth or exit timing.
- Act on real-time, cross-functional data.
- Scale smart without replicating inefficiencies.
These capabilities form the backbone of intelligent operations and are essential to thriving in today’s construction market.
Thinking About New Markets?
Expansion requires a focus on capacity, margin, and execution. Strategic contractors evaluate growth opportunities using data and forecasting.
Action Steps:
- Use historical and real-time data to model market conditions
- Run scenario simulations to test labor shortages, inflation, or regulatory impacts
- Equip leadership with dashboards to guide regional or vertical expansion
Key Metrics:
- Project success factors (crew performance, margin profiles, material availability, equipment utilization)
- Geographic and vertical profitability mapping
- Workforce capacity and subcontractor availability
- Public and private project pipeline visibility
Use Case: Scaling Smart with APS
Alliance Partition Systems grew from $5M to $50M, not by hiring more but by integrating operations. With outsourced CFO support, automated WIP reports, and strategic dashboards, APS eliminated manual bottlenecks and scaled confidently.
Preparing for a Future Exit?
Private equity, strategic buyers, and even employee-owned transition plans all look for the same thing: a scalable, transparent business.
What Buyers Want:
- Clean, integrated financials and job costing
- Documented, repeatable workflows that aren't owner-reliant
- Transparent KPIs and unit-level profitability
Investing in intelligent operations now increases valuation in the future and shortens due diligence timelines.
Use Case: Crane & Johnson Lumber
With no exit plan in place, Crane & Johnson needed clarity. Through operational reviews, financial forecasting, and succession planning, we helped leadership understand their value drivers and build a roadmap for either growth or exit.
What Strategic Contractors Do Differently
In our work with construction companies, the following critical shifts led to more sustainable success.
From Tools to Strategy
Many construction companies focus their technology efforts on those that build on current processes rather than those that drive efficiency and productivity.
Smart builders invest in scalable, integrated systems. They use historical data and predictive analytics to preempt delays, overruns, and resource gaps.
From Owner-Reliance to Organizational Value
Here’s the reality: business value is a moving target. Numerous factors influence how much your construction entity is worth — and these can change regularly.
Factors That Increase M&A Success
Company Factors | Market Factors |
---|---|
Revenue and Size | Current Economic and Industry Conditions |
Growth Prospects | Forecasted Economic and Industry Conditions |
Profitability | Industry and Competitive Dynamics (i.e. Industry Consolidation) |
Competitive Differentiators | Cash on Hand at Buyers |
Management and Employees | Availability of Debt Financing |
Organized and Prepared ("a Clean House") |
Unused Capital at Private Equity Groups ("Dry Powder") |
Track business valuation regularly and understand how it affects operational performance, accounting treatments, and working capital.
Key Focus Areas:
- Operational KPIs
- Accounting standards (e.g., revenue recognition, accrual accounting, lease treatment)
- Financial and workforce forecasting
Scale People and Processes Together
Construction companies must make decisions cross-functionally to prevent siloed decision making. This can mean:
- Aligning finance, field, tech, and leadership on shared goals
- Automating low-value workflows using RPA and AI
- Prioritizing systems that grow with your business
- Considering automation, AI, and IoT through the lens of overall business goals
In Action: A Platform for Growth or Exit
Say you're expanding into a new region. Here's how intelligent operations supports that move:
- Scenario modeling forecasts margins under variable inputs
- RPA handles invoice entry and time tracking
- Dashboards show real-time project health across sites
- Field data syncs with ERP to avoid margin leakage
These same capabilities translate into valuation strength during a sale or ESOP transition.
How to Move Forward in Today’s Marketplace
The strongest contractors are turning operations into strategy and systems into enterprise value. Whether expanding to new markets or laying the groundwork for succession, it pays to build with intelligence.
At Eide Bailly, we help contractors structure data strategy, optimize operations, and prepare for what's next — growth, transition, or sale.
Let’s build your next chapter with confidence.
Plan Your Exit with Confidence
Construction
Sell-Side Readiness
Who We Are
Eide Bailly is a CPA and business advisory firm helping our clients grow, thrive, and embrace opportunities and innovation.
