As a contracting business evolves through various growth cycles it requires very different types of leadership skills. This means that leaders always have to be changing and developing themselves and those around them. Leaders have to also be incredibly self-reflective and rigorously assess themselves and those around them on whether they still have the desire, runway and skills to lead through the continual stages of growth.
We have the opportunity to get to know many contractors. The companies that outperform for multiple generations have a culture and processes that keep the leadership pipelines vibrant. They are thinking about succession while they are in their 30s and early 40s. They are grooming others constantly. They are starting to execute succession plans while still in their 40s and early 50s to keep the pipeline vibrant.
For what it is worth we have NEVER seen a succession deal fall apart due to financing or deal structure. Those may have been the cited reasons however in every situation that we have seen it came down to a talent issue including both cultural and capability gaps.
