Issue 1 of 9: Strength of the Management Team

Construction Ownership Transition Issue 1 of 9: Strength and Alignment of the Management Team

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Beyond liquidation, nearly 100% of the value of a construction business is based on the post-transition management team's ability to continue profitably growing the business. 

Succession: Ownership Transition Issues - Number 1 Management Team. Nearly 100% of a Contractor's Valuation Beyond Liquidation Value is based on the post-transition management team's ability to continue profitably growing the business.

The exit strategy and deal structure will not materially improve the strength or alignment of the management team, though it could have a significant negative impact.

Those managers with 20-plus years of experience who have made most of the mistakes that can be made, learned their lessons, built the relationships, and still have significant professional runway left are in very short supply. This will continue to get worse over the next 10 years. 

Take a hard look at your management team and what they would look like after an ownership transition.  On a scale of 0-10:

What do you need to do to improve these scores?

What is it worth to improve these scores?


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....

Improving Team Morale
If morale on your team is low then it’s probably your fault. Those words sound harsh but let’s unpack them a little bit and see if we can improve team morale.
Change Tracking Log & Management
Great change management starts with a good tracking system. The far more important part of change management is the rigorous review process at least 2X monthly with your PMs that will limit your risk, increase your opportunities, and train your team.
Business Operating System
Contractors must have a clear vision with specific goals. It is the strength of the business operating layer of their companies that will keep them on track to achieve those goals.