Metal construction companies: an often underestimated value
Introduction
In the landscape of business transfers, certain sectors attract more attention than others. Metal construction companies rarely make the headlines, yet they represent an essential pillar of the Swiss economy. These discreet structures manufacture the frameworks, railings, metal staircases and structures that shape our built environment.
The problem? Their valuation often remains underestimated during a transfer. Sellers struggle to translate the real value of their company into figures, whilst potential buyers sometimes miss solid opportunities due to unfamiliarity with the sector. Balance sheets only reflect part of the reality: they capture neither the accumulated expertise, nor the client relationships established over decades, nor the growing scarcity of technical skills.
This underestimation poses a dual challenge. For sellers, it means a loss of value at the time of transfer. For buyers, it masks the real potential of businesses to acquire in a promising sector. This article examines the elements that make up the real value of a metal construction company and the opportunities they represent for informed buyers.
📌 Summary (TL;DR)
Metal construction companies possess a value that far exceeds their accounting assets. Between specialised equipment, rare technical expertise, established order books and solid client relationships, these structures represent often overlooked acquisition opportunities. Their valuation requires a specific approach that takes into account intangible assets and strategic positioning in a sector experiencing a skills shortage.
📚 Table of contents
A discreet but strategic sector
Metal construction companies play a central role in the Swiss economy. They design and manufacture the structures that support our infrastructure: bridges, industrial buildings, production halls, car parks.
Yet their work remains discreet. Few people realise that behind every modern facade or industrial framework lies highly specialised technical expertise. These companies master varied activities: metal frameworks, facades, staircases, railings, specialised structures.
This diversity enables them to work on major projects whilst remaining unknown to the general public. A paradoxical position for such an essential sector.
Tangible assets: beyond machinery
The value of a metal construction company rests primarily on its material assets. Laser cutting machines, CNC press brakes, automated welding equipment: these tools represent considerable investments.
Adapted workshops and fleets of specialised vehicles add to this base. Yet balance sheets often undervalue these assets. Accounting depreciation does not reflect their real replacement value.
Well-maintained equipment retains its production capacity for decades. This economic reality escapes purely accounting approaches. A professional valuation allows this value to be better quantified.
Technical expertise: a precious intangible asset
Beyond machinery, expertise constitutes the most valuable asset. Teams master complex techniques: certified welding, reading architectural plans, resistance calculations, strict safety standards.
These skills are acquired over years. ISO certifications and technical approvals create significant barriers to entry. A competitor cannot reproduce this human capital quickly.
The transfer of this expertise represents a major challenge during an acquisition. Informed buyers assess the depth of technical skills before positioning themselves. This expertise constitutes a sustainable competitive advantage in metal craftsmanship.
Solid order books and client relationships
Established relationships with architects, developers and general contractors form a strategic asset. In construction, trust is built project by project. References count more than promises.
A recurring order book testifies to this trust. Clients return to companies that deliver on time, respect budgets and guarantee quality. These commercial relationships do not appear in any balance sheet.
Yet they determine the sustainability of the business. A buyer inherits these established connections, which considerably reduces their commercial risk. This relational dimension often justifies a significant part of the valuation.
Valuation challenges specific to the sector
The valuation of metal companies presents classic pitfalls. Neglecting the order book, underestimating specialised equipment, ignoring certifications: these errors distort the valuation.
A purely accounting approach misses the essential. Sector multiples and replacement value offer fairer perspectives. How much would it cost to create an equivalent company today?
This question often reveals a significant gap with the accounting value. Specialised experts master these valuation methods adapted to the metal industry. Their support avoids detrimental undervaluations.
Opportunities for buyers
Metal construction companies offer solid opportunities to buyers. Barriers to entry protect established players: high initial investments, technical expertise, mandatory certifications.
Demand remains stable, linked to construction cycles. Development possibilities exist: new geographical markets, product diversification, vertical integration.
These companies suit experienced entrepreneurs and expanding groups. Their business model rests on solid fundamentals. The available offers deserve in-depth analysis to identify the sector's hidden gems.
Metal construction companies represent an often overlooked acquisition opportunity. Their tangible assets – specialised machinery, equipped workshops, material stocks – constitute a solid base. But the real value lies elsewhere: in the accumulated technical expertise, the certifications obtained, and the client relationships established over the long term.
The valuation of these companies requires a specific approach. Classic methods are not always sufficient to capture the value of order books, reputation in tenders, or team expertise. This is why appropriate support makes the difference.
Are you the owner of a metal construction company? Estimate your company's value free of charge to obtain an initial indication. Are you looking to acquire a business in this sector? Consult the companies currently available on Leez.
