GRIT and Candidates at West Point
D. Brown Management
December 19, 2018
When you are looking at your organizational chart, job roles, and culture, what consistently demonstrated behaviors truly drive results?
Operational Clarity Over Optimum Tax Efficiency
D. Brown Management
December 18, 2018
The tax code is complex and that can make deal structures overly complex. The legal system is just as complex. Trying to get every possible issue contingency covered can also make the deal structure extremely complex.
Work Rules: Two Truths of Performance Evaluation Systems
D. Brown Management
December 17, 2018
Performance evaluation systems are a critical part of talent development and one of the nine key processes. The foundation of great coaching -- like John Wooden used effectively -- is about being able to give rapid and actionable feedback.
Valuation Math - Growth Pays
D. Brown Management
December 16, 2018
All other factors being equal, a contractor that can accelerate growth after the purchase will -- in most cases -- be able to pay for the business quicker.
Valuation Math - Multiple of Earnings
D. Brown Management
December 15, 2018
In a valuation, you will often hear the term multiple of earnings. This is usually calculated based on some average of the last 3-5 years earnings and weighted toward the more current years.
Four Primary Financing Options
D. Brown Management
December 14, 2018
One way or another, there has to be some form of financing for an ownership transition to occur where one or more parties are putting capital at risk.
Ownership Transition Timelines
D. Brown Management
December 13, 2018
While it is possible for ownership transition timelines to be accelerated, that largely depends on the current condition of the company, including the management team and current owner.
Key Drivers of Value
D. Brown Management
December 12, 2018
Valuation is a very critical factor during ownership transitions because it has to be a number that fairly represents the value of the business for the outgoing owners while providing a solid return for the buyers.
Valuing a Construction Business
D. Brown Management
December 11, 2018
There is no single right way to value a construction business, although there are many methods that have validity. Keep in mind that the definition of “Fair Market Value” is quite simply what a willing seller and buyer agree to.
Issue 9 of 9: Low Barriers to Entry
D. Brown Management
December 10, 2018
Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors. About 500 construction contractors start up each day. In most cases, a new contractor starting up will cause a serious talent drain and add competition.
