9 Ownership Transition Issues Specific to Contractors

All businesses face challenges with an ownership transition.

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There are nine interrelated issues that heavily impact contractors. 

Succession: 9 Ownership Transition Issues Specific to Contractors.

We will dive deeper into each of these over the next week:

  1. Strength and alignment of the management team (post-deal)
  1. Culture of the company - Is it prepared for an ownership succession and compatible with the new owner? Seems “soft” but is very “hard” and can destroy value quickly.  
  1. Key relationship continuity with employees, customers, and others.
  1. Financial partner alignment with banking, surety, and possibly insurance.  
  1. Cash generation capabilities.
  1. Asset vs. stock sale - who owns past liabilities, how are they quantified, and what is the tax implication?
  1. Sustainable growth strategy and plan to ensure value is created for all stakeholders.  
  1. Future direction of the construction industry and ensuring you are neither selling nor buying the equivalent of a horseshoe manufacturer and installer in 1900.  
  1. Extremely low barriers to entry for new contractors can easily create competitors out of unaligned stakeholder groups, which often destroys value.  

9 Ownership Transition Issues Specific to Contractors
Continue building value in your business, yourself and your key team members with a good succession strategy....

9 Ownership Transition Issues Specific to Contractors
Continue building value in your business, yourself and your key team members with a good succession strategy....

The Productivity-Talent Bonus
Contractors will receive a major talent bonus when they put a relentless focus on field productivity. They will become “Talent Magnets” for the best in the industry making them unstoppable even in the face of major talent shortages.
Definition - Discipline
Consistently Doing what needs to be done even when you don’t want to do it. Motivation is doing what needs to be done when you want to do it – related to desire.
Cash Flow Tip 13 - Projecting Cash Flow and Driving Awareness
Projecting Cash Flow drives awareness, learning, actions and, ultimately, improved cash flow.