Ownership Transition and Capital Basic Model

When a contractor goes through an ownership transition, the business itself is the proverbial goose laying the golden egg.

D. Brown Management Profile Picture
Share

Remember the basic math formula for ownership transitions

Linkedin Basic Succession Capital Calculator

With that in mind, we often start with this simple calculator to look at the company’s ability to generate the cash required for a deal.

With some very basic numbers. Doing so allows all parties involved in a transaction to see what will generally work. We consider this the parallel to the initial conceptual sketches and discussions at the very beginning of a construction project.

You can tell all the basics from this model, including capital levels, future projected value growth, and estimated pay-off periods. When you have a few concepts that will generally work, you can build more complicated models and bring in advisors to help with the “Value Engineering” phase

There is no sense modeling a deal structure if the basics won’t work. Remember that no deal structure will “create” capital

Contact us to get a copy of this workbook that includes several worksheets that are helpful at these initial stages




Ownership Transition and Capital Basic Model
Continue building value in your business, yourself and your key team members with a good succession strategy....

Ownership Transition and Capital Basic Model
Continue building value in your business, yourself and your key team members with a good succession strategy....

Business Model Basics for Contractors
A contractor's strategic choices along with the supporting management systems and organizational structure must fit into a viable business model. A business model IS NOT a business plan.
Agile Project Management vs. Critical Path Method
The Critical Path Method of project management is very commonly used on construction projects. CPM does not work as well in situations where there are significant “Known-Unknowns” about the plan CPM really breaks down when there are “Unknown-Unknowns”:
Zero to One - Advice From Peter Thiel
Construction as craft and as a business has been around for thousands of years. Contractors build and maintain the infrastructure that enables society to grow. That history comes a lot of pride. It also brings a lot of difficult to change habits.