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




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....

Incentive Compensation for Contractors - Culture
Any incentive program should improve the operating execution, profit, and cash flow of the company. Aligning organizational objectives with the tangible value add to the craft worker in the field and operations staff workers yields the best results.
Building a Systems Development Team - Starting
Most Systems Development teams start with someone doing report writing or other forms of data extraction and integration, such as creating a dashboard or streamlining through imports.
Are You Solving the Right Category of the Problem?
Effectively prioritize, define, and solve problems in your organization.