We have previously talked about the general types of organizational structures we see.
- Emerging: Little leadership or management depth, often does not know what they don’t know.
- Hollow: Visionary, smart, and hardworking owner but without any middle-management depth creating a major succession problem. No deal structure will create the management competencies or desire.
- Scalable: This is the “Total Package” and the biggest issue that this level of contractor will have with succession is ensuring that someone on the management team is ready to take the lead.
How strong the organizational structure is will be a major factor in the valuation.
We spend a significant amount of our time with contractors developing strong organizational structures, creating value in the short and long term. Learn more.
