9 Ownership Transition Issues Specific to Contractors

All businesses face challenges with an ownership transition.

D. Brown Management Profile Picture
Share

There are nine interrelated issues that heavily impact contractors. 

Succession: 9 Ownership Transition Issues Specific to Contractors.

We will dive deeper into each of these over the next week:

  1. Strength and alignment of the management team (post-deal)
  1. Culture of the company - Is it prepared for an ownership succession and compatible with the new owner? Seems “soft” but is very “hard” and can destroy value quickly.  
  1. Key relationship continuity with employees, customers, and others.
  1. Financial partner alignment with banking, surety, and possibly insurance.  
  1. Cash generation capabilities.
  1. Asset vs. stock sale - who owns past liabilities, how are they quantified, and what is the tax implication?
  1. Sustainable growth strategy and plan to ensure value is created for all stakeholders.  
  1. Future direction of the construction industry and ensuring you are neither selling nor buying the equivalent of a horseshoe manufacturer and installer in 1900.  
  1. Extremely low barriers to entry for new contractors can easily create competitors out of unaligned stakeholder groups, which often destroys value.  

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....

8 Stages of Personal and Team Growth
Exploration expands our context. Learning and deliberate practice builds and demonstrates our individual productivity. Develop team productivity with four levels of leveraging yourself through others. Take an inventory of where you and your team are at.
Succession Process and Architectural Design Phases
As contractors prepare for succession, they should use the same lessons they have learned in developing and then building projects.
Changes - Problem or Fact?
If you perceive that changes are a problem in construction, then you are likely framing them as a point of blaming others. This framing will impact your ability to effectively manage changes.