Concreting Business Valuations
Independent valuations for concreting businesses across Australia.
Green Standard values residential slab and driveway contractors, commercial and civil concreting businesses, concrete pumping operators and decorative and polished concrete specialists. Two concreters with the same profit can be worth very different amounts, because the difference is found in who the work is for, how it is priced and who actually places and finishes it.
A concreter that places slabs for volume builders at a fixed price per slab, on thin margins and tight programs, is a different asset from a commercial or civil contractor on progress-claim contracts with its own pumps, or a driveway and decorative specialist selling direct to homeowners. A concrete pour cannot be redone cheaply, so crew skill and defect history carry real weight.
We examine the work mix, the customers, the crews, the plant and the pricing, then form a view on the earnings a new owner could reasonably expect to keep.
How much is a concreting business worth?
A concreting business is worth what its maintainable earnings support after a market wage for the owner’s own work, adjusted for how much of that profit would continue under a new owner and checked against the plant needed to earn it. A spread of customers, skilled finishers, well-kept pumps and plant and a clean defect record support a higher value than slab work for one or two builders at tight fixed prices.
Concreting businesses we value
What affects the value of a concreting business?
These are the questions we work through when we value a concreting business. The work is sold at fixed prices in large lumps against materials whose prices move, so we look closely at how the business wins and prices work as well as at the plant that does it.
Revenue and pricing
Residential, commercial and civil mix
Residential slabs, driveways, commercial floors and civil concrete have different customers, margins and payment terms. We split revenue by segment over several years and weigh each stream on its own record.
Builder concentration
Slab work for volume and project builders tends to sit in a few relationships, held through a site manager or a procurement team, and is exposed to the builder’s volumes and solvency. We measure revenue by builder over several years and look at how rates moved at each renewal.
Fixed-price risk with concrete and steel prices
Most concreting is quoted at a fixed price, while ready-mix concrete, reinforcing steel and fuel prices can move after the quote is given. We compare quoted and actual margin on completed jobs and look at how the business reprices and recovers variations.
Direct-to-homeowner work
Driveways, patios and decorative concrete sold to homeowners can carry better margins but bring marketing cost, quote conversion and reputation risk. We look at lead sources and whether enquiries come to the business brand rather than to the owner personally.
Crews, licences and the owner
Crew skill and finishers
The quality of a finished surface depends on a small number of skilled finishers, and good ones are hard to find and hard to replace. We look at who they are, how long they have stayed, how they are paid and what the business would do if two of them left.
Employed crews and subcontract gangs
Many concreters use subcontract gangs paid per square metre or per pour. We look at the proportion, the stability of each gang, the insurance held and the cost if a buyer had to employ them. How each arrangement should be classified is a question for the business’s accountant or lawyer.
Owner role in quoting and on pour days
Owners commonly quote, book pours with the batching plant, supervise on pour days and deal with builders. We deduct a market cost for those roles and look at who else could do them.
Licensing and safety
Licensing requirements for concreters differ by state and by contract value, and the work involves silica dust from cutting and grinding, manual handling, plant movement and wet concrete. We check the licences held, the safety systems and the workers’ compensation history.
Plant, materials and scheduling
Pumps and plant
Concrete pumps, laser screeds, power trowels, skid steer loaders and formwork are the capital behind the margin. We look at age, condition, hours, finance owing and replacement cost, and at whether pumping is a separate revenue stream with its own customers or an in-house cost saving.
Weather and cure-time scheduling
Rain stops a pour, heat and wind shorten finishing time, cold slows curing, and the ready-mix plant has to be booked for each pour. We look at how the business schedules around weather, what lost days cost in wages and plant, and how often pours are cancelled or rebooked.
Ready-mix and steel supply
Concreters buy concrete from batching plants and reinforcing steel from suppliers, so account terms, pricing and delivery reliability affect margin and program. We look at supplier concentration and whether any discount depends on a relationship held by the owner.
Cash flow and defect exposure
Cash flow and progress payments
Slabs are claimed in stages or on completion, while wages, concrete and plant costs are paid first. We look at payment terms, debtor ageing, retentions held, and how the business uses security of payment rights when customers pay late.
Defect exposure and cracking claims
Cracking, curling, surface scaling and settlement claims can arrive long after a job is paid, and the cause is often disputed between design, subgrade preparation, curing and workmanship. We look at claims history, how disputes were settled, warranty terms, the quality records kept such as pour records, slump tests and photographs, and any provision in the accounts.
Site conditions and engineering
Slab performance depends on the engineer’s design, the site classification, compaction and drainage, much of which is controlled by others. We look at whether the business reads the plans, records site conditions and declines unsuitable subgrades, or simply pours what it is given.
How a buyer reads a concreting business
Buyers of concreting businesses include larger concreting and civil contractors adding capacity, builders and developers securing supply of a critical trade, concrete pumping operators extending into placing, and experienced finishers or foremen buying their way into ownership. They are asking how much of this profit will remain once the owner, the key finishers and the best builder relationship are no longer in the picture.
Businesses with a spread of builders, commercial and civil contracts on progress claims, well-maintained plant and a clean defect history attract the widest interest. Slab businesses that depend on one or two builders at tight margins, or whose plant is old and heavily financed, are usually priced more cautiously, even when recent profits are high.
Plant matters to a buyer in a specific way: it sets what must be spent to keep earning, and in a pumping business the pump fleet is a large part of what is being bought. Our valuation considers earnings and plant together rather than treating either alone.
Adjustments we often make in concreting businesses
Reported profit is restated to what the business earns on a commercial footing before any method is applied. Every adjustment is listed in the report.
Owner wages
Replacing drawings, or a salary set for tax reasons, with a market cost for the owner’s quoting, supervision and any time spent finishing or on the tools.
Family members on payroll
Wages paid above or below market rate, or for roles that a buyer would not need.
One-off large pours or contracts
A single large commercial or civil job, or a builder relationship that has ended, that would distort maintainable revenue.
Materials price swings
A period in which concrete or steel prices moved sharply against, or in favour of, fixed-price work in progress.
Related-party yard and plant
A yard owned by the owner’s family trust or super fund and rented at other than market rent, and plant owned personally and charged to the business at other than market rates.
Rectification costs
A one-off remedial program or dispute, such as a batch of cracked driveways, separated from the normal cost of doing the work.
Plant depreciation and deferred maintenance
Depreciation set for tax reasons rather than the real cost of replacing pumps and plant, and repair spending that has been put off.
Information we typically review
You upload documents through the secure client portal after the engagement is confirmed. We send a list specific to your business; nothing needs to be gathered before the intake.
The financial pack
- Profit and loss statements, usually the last three years and the current year to date
- Balance sheets for the same periods
- Tax returns where relevant
- Payroll summary and employee information
- Vehicle, plant and equipment schedules
- Major customer information
- Recurring contracts and service agreements
- Revenue breakdown by service line
- Owner remuneration and drawings
- Unusual or non-recurring income and expenses
For a concreting business, also
- Revenue split by segment: residential slabs, driveways and decorative, commercial, civil and pumping
- Revenue by builder and customer for the last three years, with job counts and average job value
- Builder supply agreements, commercial and civil contracts and any schedules of rates
- Licences and the holder of each, and safety management records
- Plant and equipment schedule covering pumps, screeds, trowels and vehicles, with hours, condition and finance owing
- Concrete and steel supplier accounts, annual spend and pricing history
- Quote register showing quoted against actual margin on completed jobs
- Employed crew list and subcontract gang list with pay basis, tenure and insurance
- Defect and warranty claims register, including cracking claims and how each was resolved
- Pour records, test results or photographic records for a sample of recent jobs
- Work in progress, progress claims, retentions and debtor ageing by builder
What a concreting business valuation costs
Fixed fees, confirmed in writing before work begins. The standard fee applies to most established concreting businesses.
Independent Business Valuation
$1,995+ GST
For established trade and field-service businesses requiring an independent valuation.
- Review of financial information
- Normalisation of earnings
- Valuation methodology selected for the business and purpose
- Industry and business risk assessment
- Consideration of plant, vehicles and equipment
- Owner dependency assessment
- Goodwill analysis
- Valuation range and conclusion
- Professionally prepared valuation report
- Draft provided before finalisation
Accountant and Adviser Partner
$1,495+ GST
For accountants and professional advisers who refer valuation matters regularly.
- Streamlined client onboarding
- Adviser kept informed with client authority
- Independent report addressed to the client
- Secure document portal for the client
- Repeat-client workflow
- Partner pricing on every referred matter
Complex Valuations
From$2,995+ GST
For matters with more moving parts. Quoted as a fixed fee in writing before work begins.
- Multiple entities or divisions
- Significant plant and equipment
- Unusual ownership structures
- Partnership and shareholder disputes
- Complex normalisations
- Significant customer concentration
- Historical valuation dates
Fees are fixed and confirmed in writing before work begins.
Concreting valuations: common questions
How much is a concreting business worth?
A concreting business is generally worth what its maintainable earnings support after a market wage is paid for the owner’s own work, adjusted for how much of that profit would continue under a new owner and checked against the plant needed to earn it. A spread of customers, skilled finishers, well-kept plant and a clean defect record support a higher value, while dependence on one builder reduces it. Our guide on how trade businesses are valued explains the method.
Are my pump and plant valued on top of the business?
Usually not, where the business is valued on its earnings, because the plant is what produces them. Plant still matters twice: it has to be kept current, which is a cost, and in some businesses its market value sets a floor beneath the earnings value. Our guide on whether equipment adds to business value explains the distinction.
Does a cracking claim from a past job affect the valuation?
Yes, if it is open or likely to be repeated. We look at the claims history, whether the cause was workmanship, design or the site, how the business settled it and whether an allowance is needed. A single resolved dispute is normally treated as a one-off, while a pattern points to a quality problem that a buyer would price in.
Most of our slabs go to two builders. Can the business still be valued?
Yes. The report will look at the length and pricing history of each relationship, the builders’ own pipelines, payment terms and what would happen to revenue if one builder moved its work. Our guide on customer concentration and business value explains why this matters.
Related industries and guides
Valuing a concreting business? Start with a short intake.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.