Private Equity and Construction

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

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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....

Structure and Strategy - Sustainable Growth Through Balanced Execution
As a contractor grows there are inflection points where their market strategy and organizational structure must be evaluated and refined. These changes are just part of the cycles every business goes through. They are never easy but are always necessary.
Change Management Workflow
For contractors to manage changes effectively, they must understand the entire change management workflow up through the project owner’s approval and payment process.
Tracking Change Progress (The Funnel): Basic Status Categories
Managing changes effectively means that you need clear visibility across all projects. While the workflow will vary by project, the key progress milestones in your internal process will remain fixed.