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....

Premature Optimization
Construction technology innovation has exploded and is continuing to accelerate. The quantity of experienced talent is at a low point and will continue to decline throughout the next 10+ years. There are probably more unknowns than knowns.
Business Development Defined
Nothing will have a bigger impact on a contractor’s business than a constant flow of high quality work with a select group of customers.
Succession Fact #3: Trust Between Parties
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.