Issue 1 of 9: Strength of the Management Team
D. Brown Management
December 2, 2018
Construction Ownership Transition Issue 1 of 9: Strength and Alignment of the Management Team. Beyond liquidation, nearly 100% of the value of a construction business is based on the management team's ability to profitably grow the business.
9 Ownership Transition Issues Specific to Contractors
D. Brown Management
December 1, 2018
All businesses face challenges with an ownership transition. There are nine interrelated issues that heavily impact contractors.
Succession Fact #3: Trust Between Parties
D. Brown Management
November 30, 2018
Succession Fact #3: No exit strategy or deal structure will work without trust between all major stakeholder groups. Whether it is a large and complex project or a business ownership transition, there will never be a “perfect” set of documents or plan.
Succession Fact #2: Desire & Competencies in the Management Team
D. Brown Management
November 29, 2018
Succession Fact #2: No exit strategy or deal structure will create desire, alignment, and competencies in the management team. With that said, it is incredibly important that the exit strategy and structure of the deal maintains and enhances the team.
Succession Fact #1: Capital and Cash Flow
D. Brown Management
November 28, 2018
Succession Fact #1: No deal structure will substantially create capital or cash flow. It is only the business performance that ensures all major stakeholder groups are compensated properly for their time and capital put at risk.
Contractor Exit Strategy 6 of 6: Sale to Employees (ESOP)
D. Brown Management
November 27, 2018
Contractor Exit Strategy 6 of 6: An ESOP (Employee Stock Ownership Plan) is a qualified defined contribution employee benefit plan designed primarily to invest in the company’s stock.
Contractor Exit Strategy 5 of 6: Sale to Management
D. Brown Management
November 26, 2018
Contractor Exit Strategy 5 of 6: Sale to Management. A very common exit strategy for contractors and one that might be integrated with passing the business down to family or used when there is no family involved in the management of the company.
Contractor Exit Strategy 4 of 6: Merger with a Similar Contractor
D. Brown Management
November 25, 2018
Contractor Exit Strategy 4 of 6: Merging with a contractor that has a complementary market position and management team can be both a great exit strategy as well as an effective growth strategy.
Contractor Exit Strategy 3 of 6: Strategic Sale to an Outside Buyer
D. Brown Management
November 24, 2018
Contractor Exit Strategy 3 of 6: Strategic Sale to an Outside Buyer. This is what every contractor wants, however, only a small percentage of deals truly fit into this category.
Contractor Exit Strategy 2 of 6: Pass Down to Family
D. Brown Management
November 23, 2018
Contractor Exit Strategy 2 of 6: Pass Down to Family. This is a very common strategy for contractors and is successful for those with interested family member(s) who are effectively working in leadership roles.
