Should I buy a Construction Company in LA if I plan to stay in San Diego?

searcher profile

November 18, 2025

by a searcher from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) in San Diego, CA, USA

I’m looking at an acquisition in the Los Angeles area. The owner is retiring, we’ve built a solid relationship, and we’re already roughly aligned on price. I’m now trying to decide whether to go ahead and submit an LOI. Quick background: - Specialty installation work in new construction - Long-term relationships with several GCs who bring the company recurring projects - Revenue is around ~ $3M - Decades in business with stable performance - Owner currently handles most day-to-day and on-site coordination. - Plenty of room to grow with better systems, process structure, and capacity for managing more projects. My main consideration is that I’m based in San Diego and plan to stay here. I’ll be actively involved in operations, but I won’t be physically on-site. If I lived in LA this would be an easy “yes,” so I’m thinking through how to set up the right operating structure. I’m open to bringing in an on-site operator/GM and flexible on structure (equity, incentives, hybrid) whatever aligns interests and empowers the operator to run day-to-day effectively. Would love the community’s help with two things: 1. Has anyone done something like this? Buying a construction-related business while living out of the area and relying on an operator/GM. Curious how you structured incentives and what pitfalls to watch out for. 2. Operator Interest If you (or someone you know) has experience in construction trades, specialty installation, or managing GC relationships—and is based in LA—I’d love to connect. There’s real upside here for the right person. Appreciate any advice, stories, or introductions.
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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Do you have construction industry and actual operations experience? Is the company doing all new-build/new construction project based work? Are there relationship/GC referral concentrations? Do you have a network to call on with this industry expertise? Do you have good personal liquidity to weather the storm of project and cyclical ups and downs? If you don’t have construction expertise, I’d consider the fit for this industry. And yes, in one lender’s opinion, you need to live where the business is being conducted. Construction is not a hands-off/absentee mgmt industry, especially in the initial transition. redacted
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Reply by a searcher
from Babson College in Reno, NV, USA
Hi Jonathan, I bought a wood truss manufacturing company based in the Central Valley with a second location in Northern Nevada. We work directly with framers and GCs, servicing all of CA, NV and AZ. The summary is that I put GMs in place at both locations and split my time, living in Reno. Two years in and I've fired both GMs. Happy to chat if you'd like.
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