Buying a general contracting company in Orlando and Central Florida

• Steady profit across projects, not one great year, with costs tracked by job, showing which kinds of work make money.
• Repeat customers and referral sources (architects, developers, property managers) whose loyalty isn't to the owner alone.
• Superintendents and project managers who run jobs without the owner on site.
• Plenty of subcontractors who answer its calls because it pays on time.
• Change orders written and signed before extra work starts, not argued over at the end.
• A clean history of claims, lawsuits and liens.
• Bonding capacity (how much a surety will guarantee), if it does public or larger commercial work.
• A backlog (signed work not yet done) at sensible margins, not jobs won by bidding low to stay busy.

• Backlog: each signed job, its contract value, cost to finish, expected margin and payment status.
• The work-in-progress schedule: whether the company has billed ahead of or behind the work done. If it's ahead, some of its cash is really owed to subcontractors.
• Margins on completed jobs over the last three years.
• Warranty claims and defect lawsuits. Florida generally allows construction defect suits up to seven years after completion, so past work stays a risk. Your attorney can help keep the seller responsible.
• Liens filed by subcontractors or suppliers, and unpaid bills.
• Deposits: Florida contractors who take more than 10% of a residential contract up front must apply for permits within 30 days and start within 90 days after permits issue.
• Insurance, bonding, and how the surety views a new owner.

• Whose license does the company work under, and would they stay after the sale?
• What kinds of projects make you the most money, and which have lost money?
• Who are your repeat customers, and who's their contact here?
• How do you estimate, and how often do jobs run over budget?
• How much signed work do you have lined up?
• Have you had any defect claims, lawsuits or liens in the last five years?
• Which superintendents and project managers would stay through a sale?

This region covers Orange, Seminole, Osceola, Lake, Sumter and Marion counties: Orlando, Winter Park, Kissimmee, St. Cloud, Sanford, Clermont, Leesburg, Ocala and the large retirement communities of Sumter and Lake counties. Tourism is what the area is best known for, built on the theme parks, the hotels, the vacation rental homes around Kissimmee and the Orange County Convention Center. It's far from the only business. The University of Central Florida and the military simulation and training offices near it support a technology base, and health care is a major employer.

Marion County is horse country, with thoroughbred farms around Ocala, and it has added warehouses and distribution centers along Interstate 75. Retirees in Sumter and Lake create steady demand for medical practices, home care, home maintenance and auto services. The building trades, restaurants, and companies that serve hotels and rental homes do well across the region.

Central Florida is inland, so storm surge isn't the worry it is on the coasts. Hurricanes still bring wind damage and flooding, though: Hurricane Ian flooded neighborhoods in Orange, Seminole and Osceola counties in 2022. Ask whether the business or its customers were affected.

Tourism keeps demand steadier through the year than in markets that depend on winter residents, with busy stretches around school holidays. Hotels, parks and restaurants compete hard for workers, which pushes up wages for any company that hires hourly staff. New homes have spread fast in Osceola, south Lake and southeast Orange counties and around Ocala, so check whether a company's customers are in growing areas or older ones. Traffic on Interstate 4 limits how much ground a service company can cover in a day.