Read this if you are buying a construction company.
Buying a construction company?
Look at WIP schedules Get a good understanding of:
Total project values
How much has been billed and collected
What percentage of each project is complete
Whether you are overbilled or underbilled
How accurate your past estimates have been
Why? Because construction revenue is lumpy, and cash collected does not always mean revenue earned.
I help buyers clean up and analyze these reports before they acquire.
If you are buying a construction business, make sure you understand WIP. It can make or break the deal. Email me redacted for help.
Look at WIP schedules Get a good understanding of:
Total project values
How much has been billed and collected
What percentage of each project is complete
Whether you are overbilled or underbilled
How accurate your past estimates have been
Why? Because construction revenue is lumpy, and cash collected does not always mean revenue earned.
I help buyers clean up and analyze these reports before they acquire.
If you are buying a construction business, make sure you understand WIP. It can make or break the deal. Email me redacted for help.