Ownership Transition Timelines

While it is possible for ownership transition timelines to be accelerated, that largely depends on the current condition of the company, including the management team and current owner.

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D. Brown Management
December 13, 2018 2 minute read
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Succession: 5-7 Years to Prepare the Team and 12-18 Months to Work Through the Transaction.

The timelines cited below are for a contractor with a very hands-on, current owner with a functioning management team but not one that is ready to fully run the business.  

  • There is at least one leader within the management team who has expressed interest in future ownership while also demonstrating the drive and competencies required.  
  • The business is performing well, having enough capital and being able to regenerate its working capital every 4 or 5 years after taxes.
  • The current owner of the business is actively working on setting the company up for succession, including knowing what they want to do after selling the business.   
  • Starting from this foundation, assume that preparing the team will take 5-7 years and the transaction details will take 12-18 months.  
  • The single largest factor in how much these can be shortened is the speed of human development and a foundation of trust between the parties.  

If you want to discuss your particular situation, we'd love to have a conversation.

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