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| Blueprints of Value: A Deep Dive into Engineering and Construction Company Valuation (2233Q) |
Course CPE: 2 hours
Fields of Study: Finance–2 hrs
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 25BV1204BVD
Shipping Weight: 0lbs. 0oz. |
| Price:
$147.00 |
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Recording Date: December 4, 2025
Presenter: Bryan Setz
Program Description:
This presentation offers an in-depth exploration of valuation methodologies and transaction dynamics specific to engineering and construction firms in the United States. Tailored for experienced business valuation professionals, the session will dissect the unique characteristics of this complex and project-driven industry, providing insights into both theoretical frameworks and practical applications.
Participants will begin with a comprehensive breakdown of the construction and engineering sector, including its major service lines; such as general contracting, specialty trades, design-build, and consulting engineering. We will examine how these segments differ in terms of revenue recognition, cost structures, and operational risk, all of which have significant implications for valuation.
The session will then delve into common valuation strategies, including income, market, and asset-based approaches, with a focus on how these are adapted to reflect the cyclical nature of the industry, backlog and pipeline visibility, bonding capacity, and working capital intensity. Special attention will be given to normalization adjustments; such as owner compensation, job costing anomalies, and underbillings/overbillings, which are frequently encountered in this space.
Industry-specific accounting topics—such as percentage-of-completion vs. completed-contract methods, retainage, and WIP schedules—will be discussed in detail, highlighting their impact on financial analysis and valuation accuracy. We will also explore current industry trends, including labor shortages, technology adoption, and ESG considerations, and how these influence market dynamics and investor sentiment.
The session will cover common exit strategies, including third-party sales, private equity recapitalizations, and management buyouts, along with a profile of the buyer universe and deal execution challenges. Real-world case studies will illustrate transaction pitfalls, valuation gaps, and strategies for bridging them.
Finally, we will address broader considerations such as succession planning, regulatory changes, and macroeconomic factors that affect deal flow and valuation multiples. Attendees will leave with a robust framework for approaching valuations in this sector, equipped with actionable insights and a deeper understanding of the nuances that drive value in engineering and construction businesses.
After completing this course, you will be able to:
- Identify the structural composition of the engineering and construction industry
- Determine common normalization adjustments, such as owner compensation, job costing irregularities, and WIP-related adjustments, to ensure accurate financial representation
- Differentiate industry-specific accounting practices, including revenue recognition methods, retainage, and bonding capacity, and assess their impact on valuation outcomes
- Identify common exit strategies and buyer profiles, including third-party sales, private equity interest, and management buyouts, with a focus on transaction execution challenges
- Recognize common pitfalls in deal execution, including valuation gaps, succession planning issues, and regulatory hurdles
- Select a comprehensive framework for valuing engineering and construction firms, integrating financial analysis, market dynamics, and strategic considerations
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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