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
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....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Project Delivery - CM Agency or Multi-Prime
Project Owners can minimize the markups for overhead and profit by contracting directly with the specialty contractors and hiring a Construction Management (CM) firm to work as their agent. This project delivery method is called CM Agency or Multi-Prime.
Mark Twain - Boundaries of Knowledge
Whether you are learning or training it is important to understand the boundaries of your own knowledge as well as the boundaries of those you are working with.
Keeping Leadership Vibrant
Which of these four images of Atlas best represents how you feel? As a contracting business evolves through various growth cycles it requires very different types of leadership skills.