9 Ownership Transition Issues Specific to Contractors

All businesses face challenges with an ownership transition.

D. Brown Management Profile Picture
Share

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.  

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Asking Good Questions
The ability to ask good questions is critical for learning and development. The discipline of composing truly great questions often answers the original question you had and many more.
Michael Jordan and Failure
When it comes to our personal learning and coaching others, it is critical to stay in the “Learning Zone” as much as possible. Maximum benefit comes from pushing the outer limits of the learning zone into the panic zone where you will fail.
Leveraging Precon and CMAR for Sustainable Growth
Many contractors in many markets can use this three-phase strategy to achieve sustainable growth by leveraging CM at Risk and Advanced Preconstruction Services to build a competitive advantage.