Financing Your Construction Business

Funding options for construction companies

If you are looking to recapitalize or take out a loan to run or grow your construction company, there is a 95% chance you will fall into at least one of these three categories:

  • You have a productive construction business but you’re struggling to pay the bills
  • You have made the mistake of taking out a merchant cash advance loan and are now looking for ways to pay it off and refinance your business.
  • You have a thriving business, you want to continue growing it and need a moderate loan in order to do so.

The first two situations are the most common and almost always lead to the business owner selling, so that is what we will focus the rest of this article on. If by chance you have a thriving business and you are looking for a moderate loan to grow it, the SBA has a number of exceptional programs for business owners like you that should be available at your local participating bank or credit union.

So you chose to move on

Anybody who has ever run a business knows how strenuous it can be. The late nights, early mornings and years of work that it takes to build something worthwhile. A question we often hear from people outside of our industry is “why would a business owner ever sell?” or, “If they are selling, it must not be doing very well.”

Contrary to both of these statements, we meet with business owners every week who run successful businesses that are entertaining selling all or at least a portion of their business. These are some of the sellers that we meet with on a regular basis:

  • Retirement
  • Health issues
  • Pursue new ventures
  • Burnt out

Options when selling your construction business

We spoke at length about how to sell your construction business in our blog post entitled how to sell a construction business. That is a good place to start if you are looking for information on who buys the business, valuation and deal structure.

In short, the selling process can be long, arduous and filled with unwelcome surprises. The options you have include:

  • Sell through a broker to:
    • A buyer who gets an SBA loan.
    • An investment company (Private equity or family office)
  • Sell directly to:
    • A competitor
    • A supplier or other adjacent business
    • A private equity company
    • Minerva Equity
    • A current employee who may be capable of paying over a number of years
  • Give the business to:
    • A loved one (son or daughter typically)
    • Your current employees


If you are considering selling your business and would like to know more about how construction companies are valued, have a look at our construction company valuations article.

At Minerva, we believe that we have created a deal platform that allows sellers to take full advantage of the business that they have created, while also doing what is right by their employees.

When we acquire a business, one of the first things we do is grant equity to the current employees. In addition, when we hire future managers, we require that they take equity as a part of their compensation. This ensures that all parties interests are aligned and it is in everyone’s best interest to see the business succeed.

This means that we own less equity in each deal and subsequently make less money. However, our favorable financing terms give us the ability to operate this way and still get a desirable return.