Private Equity and Construction

The Construction Industry is Seeing Large Shifts With Several Interrelated Trends.

D. Brown Management Profile Picture
Share

All of the trends that are changing the construction industry today require economies of scale and capital to truly take advantage of. 

Succession. Private Equity and Construction.

The biggest winners will be those leaders who can effectively balance their vision for what’s next in the industry with relentless and disciplined execution while leveraging capital.  

Private Equity firms are seeing that trend and taking a bigger interest in the construction market. They have a keen interest in scaling the Return on Capital of 20-35% that contractors operate at.  

Their model has started to shift from typically asset heavy purchases to a growth mindset with the construction market starting to check both of those boxes.  

A recent ENR article pointed out to increased PE deals in the industry.

PE can be a solid exit strategy for the right type of contractor and anything done to make your company truly valuable to a PE firm will increase it’s value all around.  

Invest a few days in reading about the industry, how the firms operate, and how typical deals are structured before you start exploring this further:


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....

Correlation Between Culture, Safety, Profitability, and Growth
There is a high correlation between contractors that have consistently GREAT safety records and consistently GREAT profitability, growth, morale, and talent retention.
Change Management Dashboards
Summarize your detailed change tracking logs with concise dashboards that give you critical information in a format that allows you to see the big picture while still having enough information to be actionable.
Required Leadership Focus Changes at Each Stage of Growth
At each stage of growth, the leadership focus at the top for majority Owners/CEO/President must change to continue navigating growth effectively. Concurrently, the leadership focus from the prior stage of growth must be transferred and expanded downward.