Buying a general contracting company in Southwest 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 Lee, Collier, Charlotte, Sarasota and Manatee counties on the Gulf coast and Hendry, Glades and DeSoto inland: Fort Myers, Cape Coral, Naples, Bonita Springs, Punta Gorda, Port Charlotte, Sarasota, Venice, Bradenton, LaBelle, Clewiston, Moore Haven and Arcadia. The coastal economy runs on people who choose to live or spend the winter here: retirees, seasonal residents, and the construction, real estate, health care, financial and home services that follow them. Tourism, golf and boating add to it.

Inland, the economy is agricultural: sugarcane around Clewiston, citrus, cattle and vegetables, with Immokalee in Collier County a center for farm work. The building trades, pool, landscaping and pest control companies, property managers, medical and dental practices, and marine businesses tend to do well along the coast.

This is one of Florida's most seasonal markets. From roughly January through April, restaurants, shops and service companies run at full speed. Summers are slower, so look at monthly revenue, not only the yearly total. The coast has taken two major hurricanes in recent years: Ian came ashore at Cayo Costa in Lee County in September 2022, and Milton at Siesta Key in Sarasota County in October 2024. Rebuilding brought a wave of work for contractors that won't last forever, so ask how much recent revenue came from storm repairs. Insurance costs and flood zones weigh on every property.

Housing costs near the coast make hiring hard, especially around Naples. New communities east of Interstate 75 in Lee, Collier, Charlotte and Manatee keep service companies busy.