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.

D. Brown Management Profile Picture
D. Brown Management
December 13, 2018 2 minute read
Share
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.

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....
Previous Next Go To Series
Related Insights Series
Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....
Previous Next Go To Series
Related Insights Series
Unicorns and the Growing Contractor
If you are having consistent difficulty finding the right person for a role, you may be looking for a unicorn. Requiring unicorns to grow is a bad plan. If you do find a unicorn, just ask them where the pot of gold is and forget about construction!
Related Article
Building a Systems Development Team - Workflow
How Workflow Mapping can be an important tool for Systems Development Teams and beyond.
Related Article
Pulling Knowledge
There are few things that will accelerate career and team development faster than improving learning capability. Some thought processes and habits that accelerate learning are:
Related Article