What buyers focus on in California construction transactions
These are the items that consistently come up in due diligence and negotiation for construction businesses in California. Understanding them before going to market gives you time to address them.
California Contractors State License Board (CSLB) records are fully public; buyers verify immediately
CEQA compliance and environmental review requirements affect project timelines and buyer risk assessment
Prevailing wage requirements on public works projects are heavily scrutinized by buyers calculating post-acquisition labor costs
California's independent contractor laws (AB5) significantly affect subcontractor relationships and deal structure
The preparation timeline that matters
Most owners underestimate how long it takes to prepare a construction business for sale. The items in the list above are not things you can address in the 30 days before you go to market. They require months of advance work. Owners who start early (typically 12 to 24 months before their target sale date) consistently achieve better terms than those who rush.
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