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....

Four Critical Elements of a Good Task
Breaking a construction project down into manageable tasks is the foundation for effective detailing, prefabrication, production tracking and productivity improvements. How effective is the tasking part of your project planning process?
Doing What is Necessary
We've never seen anyone who consistently did whatever it took for the team to win, including developing new capabilities, who wasn't wealthy in all aspects of their life.
Three Questions About Growth
A construction business can not be managed like a project even though the primary work of a contractor is building projects. There are three questions that illustrate these differences.