434: The Actual Net Worth Of Your Construction Company

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 434, And It's About The Actual Net Worth Of Your Construction Company</strong></span></h1> <div>Have you been in business as a construction contractor or specialty contractor for a while, and now you are wondering what your construction company is worth?</div> <div> </div> <div>Nothing is ever as good or as bad as it appears. If you are like most contractors, you learned a trade, skill, or craft, and after a while, you decided to go into business for yourself and make "The Big Bucks," which was one of the happiest days of your life. I've heard It said that boat owners experience two of the happiest days in their lives; the day they bought their boat and the day they sold it.</div> <div> </div> <div> <div> <p><span data-preserver-spaces="true">So, how much is your construction contracting company worth? </span></p> <p><span style="color: #0600ff;"><strong>Accounting Value:</strong></span></p> <p><span data-preserver-spaces="true">Equity Which Is [Assets or What You Own] (Cash, Tools, Material, Loans The Company Made) - [Liabilities or What You Owe] (Payables, Credit Card Balances) = [Equity or what is left Over].</span></p> <p><span data-preserver-spaces="true">These numbers are found on your construction company Balance Sheet. See the example below and notice the highlighted line "Total Equity," which is $305,616.56.</span></p> <p><span data-preserver-spaces="true">This means as far as the accounting records are concerned:</span></p> <p><span data-preserver-spaces="true">#1 If the owner collected all of the money owed to them</span><strong><span data-preserver-spaces="true"> [Accounts Receivable] </span></strong><span data-preserver-spaces= "true">and got the security deposit back.</span></p> <p><span data-preserver-spaces="true">#2 Sold all vehicles, computers, office equipment, machinery, and equipment </span><strong><span data-preserver-spaces= "true">[Fixed Assets]</span></strong><span data-preserver-spaces=