Buying a general contracting company in Space Coast and Volusia

• 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 Brevard, Volusia and Flagler counties: Melbourne, Palm Bay, Titusville, Cocoa, Cocoa Beach, Merritt Island, Daytona Beach, Port Orange, Ormond Beach, DeLand, Deltona, New Smyrna Beach and Palm Coast. Brevard's economy is built around space. Rockets launch often from Kennedy Space Center and Cape Canaveral Space Force Station, and aerospace and defense manufacturers and their suppliers employ engineers, technicians and machinists across the county. Port Canaveral is a major cruise port.

Volusia depends more on tourism, beaches and big events, with Daytona's motorsports and motorcycle rallies drawing crowds. Health care and a large retired population matter too. Flagler County, around Palm Coast, is mostly residential. Machine shops, electrical and engineering firms, home service companies, marine businesses and restaurants all have a place here.

Brevard's fortunes follow the space and defense programs. A company that sells to aerospace firms should be able to show you how many customers it depends on and how secure their work is. Business in Volusia spikes around big events and the winter season, so look at revenue by month.

The whole coast faces storm risk. In 2022, Hurricane Ian brought flooding to much of Volusia, and Hurricane Nicole, which came ashore near Vero Beach six weeks later, washed away beaches and seawalls along the Volusia coast. Beachfront property needs careful insurance and structural checks. The Indian River Lagoon and the St. Johns River make boating and fishing part of daily life, which keeps the marine trades busy. Palm Coast and the Palm Bay area have added many new homes, and companies serving those areas have grown with them.