Organizational Structures and Succession Preparation

Whether you are focused on growing profitably or preparing for an ownership transition, the strength of your organizational structure is a major factor.

D. Brown Management Profile Picture
Share

We have previously talked about the general types of organizational structures we see.  

Succession: Organizational Structures and Succession Preparation.
  • 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.


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....

The 5th Knot - A Lesson in Never Quitting
There are few things that drive success more than simply never giving up. How far are you willing to push yourself to get what you want?
Cash Flow and the 5Cs of Credit - Capacity
The 3rd of the 5Cs of Credit is how much capacity your business has to profitably build the projects, ensuring payback of the loan or minimal risk in the case of insurance or bonding.
The Basic Math of Business Transitions
Ownership succession for a construction business is complex. Sometimes it is best to back up and look at a really simple model to keep the three primary parties focused on what is truly important.