INDUSTRY · CONSTRUCTION
Selling a construction business in Quebec
The industry hit an all-time high of 216 million hours in 2025, but construction costs have jumped 65% since 2019. In a regulatory framework unique to Quebec — RBQ licence, Loi R-20, CCQ collective agreements — buyers don’t pay for volume: they pay for the ability to deliver without surprises, with defensible margins.
The construction market in Quebec
216M
Hours worked in 2025 — all-time high
CCQ, 2025
27,800
Active employers (R-20 industry)
CCQ, 2024
90 days
Window to replace an RBQ responsible officer
RBQ, 2026
Quebec’s construction industry hit an all-time high in 2025 with 216 million hours worked (CCQ). The sector counts close to 28,000 active employers subject to Loi R-20 and roughly 198,000 employees, for a total payroll of $10.2 billion (CCQ, 2024).
Construction investment spending represents approximately $79 billion (CCQ, 2024).
But 2026 projections anticipate a slight pullback to 213.3 million hours (-1%) (CCQ). The market is running at "two speeds": residential continues to grow (housing starts +22.9% in 2025, ISQ), while non-residential is more uneven.
Some large industrial projects have been suspended, and non-residential building permits dropped -16.9% on average in 2025 (ISQ).
Cost pressure is intense: construction costs have risen +65% since 2019, driven mainly by wages and labour scarcity (Desjardins, 2025).
For a seller, going to market now means capitalizing at the top of the cycle — but the buyer will challenge your ability to hold margins as costs keep climbing. That’s precisely why a serious business valuation for a Quebec construction SME cross-checks several approaches rather than applying a single multiple to raw EBITDA.
What’s specific about selling a construction business
The steps to sell a business in Quebec are the same across industries, but construction adds its own friction. The regulatory framework — RBQ, CCQ, GCR — turns due diligence into an exercise of considerable complexity.
The RBQ licence: critical asset, not "portable"
The licence is tied to the business’s NEQ, not to the owner. In a share sale, the licence stays active — but if you’re the responsible officer, the buyer has 90 days to qualify a new one.
In an asset sale, it’s a full new application. RBQ administrative delays are currently extended (April 2026), which can push back a closing.
The CCQ turns labour into an M&A issue
CCQ due diligence looks for non-compliance risk: monthly reports, amounts due, apprentice-to-journeyman ratios, worker classification. A history of infractions signals potential retroactive penalties.
The buyer also evaluates the ability to retain key foremen and journeymen after the transaction — in a market where worker mobility is governed by Loi R-20.
Projects in progress drive the price
The buyer reviews the backlog contract by contract. Over-billing (billing ahead of actual costs) creates a hidden liability that feeds directly into the working capital adjustment — the buyer inherits the work without the matching cash flow and deducts the difference from the price.
Holdbacks (5% to 10% of the contract, 12 to 13 months), claims, deficiencies, and exposure to the GCR warranty plan (new residential) are all deal-level items.
Typical multiples
Construction covers very different realities — a general contractor, a specialized trade running recurring services, and an excavator aren’t valued the same way. The cycle (residential vs. I/C vs. civil), revenue recurrence, and capital intensity all move the multiple significantly. The underlying logic — why valuation multiples vary from one industry to another — applies with force here: normalized EBITDA has to reflect realistic maintenance capex and market-rate rent before applying the range.
Multiple ranges — construction SMEs
Base: Normalized EBITDA (after maintenance capex, market-rate rent, WIP adjustment)
General contractors (SME)
Very sensitive to backlog quality, founder dependence, and projects in progress
Specialized trades (recurring services)
Premium for recurrence — maintenance contracts, service calls, long-term relationships
New residential (builder)
Exposure to the GCR warranty plan — claims history affects valuation
Light civil / excavation
Heavy equipment component — maintenance capex compresses the multiple
No public “Quebec SME construction by sub-segment” benchmark exists. The general contractors segment draws on broker data (TRNSFR, Demers Beaulne). The recurring services, new residential, and civil segments are inferences based on buyer logic and the risk characteristics of each sub-segment. North American mid-market benchmarks (~10-12x, Capstone/BMO) serve as an indicative ceiling for larger transactions.
What pushes the multiple up
- Recurring revenue (maintenance contracts, service calls, long-term relationships)
- Autonomous estimating and management team (no founder dependence)
- Clean compliance record (CCQ, RBQ, CNESST, GCR)
- Profitable backlog with well-framed contracts and documented change orders
- Exposure to strong segments (residential, civil, wind, Hydro-Québec)
What pushes the multiple down
- Dependence on the owner as lead estimator or key relationship holder
- Significant over-billing (hidden liability in work in progress)
- Aging equipment fleet needing imminent replacement capex
- Open warranty or claims files (GCR, defects, deficiencies)
- Excessive concentration on a single project owner (> 40%)
Who buys construction businesses in Quebec?
Consolidation in construction happens through capabilities more than volume: buyers are looking for specific expertise, geographic coverage, licences, and above all teams of qualified CCQ workers that can’t be hired organically.
Who buys and why
Large contractors or regional groups — acquiring capabilities (expertise, licences, CCQ-qualified labour) rather than just volume.
Platform + add-on strategy. Targeting SMEs with EBITDA above $3 million, autonomous teams, and above-average margins.
Superintendents, project managers, or key estimators — the safest path for the RBQ licence, but financing is often limited.
Marginal — high barriers to entry (RBQ exams, bonding, Loi R-20) and limited financial capacity to compete with strategic offers.
Indicative estimates — no public source breaks out buyers by profile for Quebec construction SMEs. Hierarchy inferred from documented consolidation examples (Excelpro/Polaris, Roxboro/BauVal, Colas/Meloche), a North American mid-market proxy (Capstone: strategic majority in construction services), and regulatory barriers (RBQ/CCQ). Percentages should not be read as market data.
Concrete case — Excelpro / Polaris: in October 2025, Groupe Excelpro acquired 50% of Construction Polaris CMM (Sept-Îles), specialized in civil engineering and the mining sector. The goal: add a "civil" capability to its industrial services platform. This type of deal illustrates the dominant logic — the buyer isn’t acquiring revenue, they’re acquiring a delivery capability and a compliant operating base (Investissement Québec, 2025).
The major consolidation cases — Roxboro/BauVal and Colas/Meloche — confirm the same logic at larger scale: acquirers secure access to critical resources (quarries, asphalt plants, qualified teams) that organic growth can’t deliver quickly enough.
Making this dynamic work in your favour takes a structured competitive process — putting several strategics in competition, securing the CCQ/RBQ file, running bonding arrangements in parallel. That’s the job of a business broker in Quebec, mandated exclusively by the seller: running that process while you keep delivering on your job sites.
Frequently asked questions — Selling a construction business
Is my RBQ licence transferable when I sell my business?
Not directly. The licence is tied to the Quebec Business Number (NEQ). In a share sale, the business keeps its NEQ and its licence — but if you’re the responsible officer (répondant), the buyer has 90 days to qualify a new one (RBQ exams or equivalency file). In an asset sale, the buyer has to submit a new licence application, with the administrative delays that entails. (Source: RBQ, 2026)
What will a buyer verify on the CCQ side?
Buyers audit compliance with Loi R-20: apprentice-to-journeyman ratios, accurate payroll records, monthly reports and amounts due, worker classification, and scope of application. A history of non-compliance signals a risk of retroactive fines — late-payment penalties on amounts due to the CCQ can reach 20% — and can jeopardize the deal or justify holdbacks on the price. (Source: CCQ, 2026)
How do buyers evaluate my projects in progress?
They review the backlog contract by contract: remaining margins, billing pace, change orders, holdbacks, claims, and deficiencies. Over-billing (billing ahead of actual progress) creates a hidden liability — the buyer inherits the work without the matching cash flow and deducts that amount from the price. A “clean” backlog supports valuation; a “dirty” one destroys it.
Do holdbacks from past projects belong to me after the sale?
In principle, yes — you performed the work. But buyers will often require that those amounts (5% to 10% of the contract, held for 12 to 13 months) be placed in escrow to cover any claims or defects on work delivered under your ownership. It’s a major closing negotiation point. (Source: industry standard practice)
Does owning a large equipment fleet increase value?
Not necessarily. Buyers evaluate the capacity to generate free cash flow, not the size of the fleet. An aging fleet implies future capital expenditure (capex) that the buyer will deduct from their model. The macro trend favours leasing in construction — an “asset-light” but profitable business can command better multiples than an asset-heavy one with obsolete machinery. (Sources: StatCan, BDC)
Does Quebec’s regulatory framework make the sale more complex than elsewhere?
Yes. Quebec combines the RBQ licence, Loi R-20 (CCQ, collective agreements), the GCR warranty plan (new residential), and bonding requirements — an ecosystem unique in North America. It’s also an advantage for compliant sellers: barriers to entry are so high that buyers pay a premium to acquire a platform that’s already operational and compliant.