Cash Flow & Valuation Gap Analysis

Where your cash hides.
What your company is worth.

Two gaps decide your future: the gap between the profit you report and the cash you keep — and the gap between what your company is worth today and what it could be worth to the right buyer. We find both.

Revenue is Vanity. Profit is Sanity. Cash is King.

The Construction Problem

Some of the worst cash
dynamics of any industry

Long receivables

You finance your customers. Every day past due is your working capital sitting in someone else's bank account.

Retainage holdbacks

Five to ten percent of every job held for months — earned money you can't touch while payroll runs every Friday.

Front-loaded costs

Labor, materials, and mobilization go out the door long before the first payment application comes back.

75 days vs 45 days = ~$822,000

If you're collecting at 75 days instead of 45, on $10M in revenue that's roughly $822,000 in extra working capital you're financing with your own money — or your credit line. A buyer sees that and discounts your value accordingly. The companies that solve this problem are worth dramatically more.

The Analysis

Two gaps, one working session

The Cash Flow Gap

Where the money actually goes between the P&L and the bank account:

  • Cash conversion cycle — job start to cash in hand
  • Receivables, retainage, and billing rhythm
  • WIP and under/over-billings
  • How much of your growth your cash can actually fund

The Valuation Gap

The distance between today's value and buyer-ready value:

  • Your ten value drivers — where buyers discount
  • Financial value vs strategic value
  • The hidden assets — your "Rembrandts in the attic"
  • What the right buyer would actually pay for

Then we work the levers. Small moves, compounding results — a one-percent or one-day improvement in each:

Price Volume Job Costs Overheads Receivable Days Payable Days WIP Days

That's the Power of One — seven levers every construction company already owns. Most owners have never seen what moving all seven one notch does to cash and value at the same time.

See Your Gaps

Stop growing broke.
Start growing value.

Start with the Readiness Scorecard — Cash Flow Strength and Financial Clarity are two of the ten drivers. Then bring your numbers to a free Value Snapshot Call.