9 Ownership Transition Issues Specific to Contractors

All businesses face challenges with an ownership transition.

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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.  

9 Ownership Transition Issues Specific to Contractors
Continue building value in your business, yourself and your key team members with a good succession strategy....

9 Ownership Transition Issues Specific to Contractors
Continue building value in your business, yourself and your key team members with a good succession strategy....

7 Major Stakeholder Groups in Ownership Transitions
As contractors plan for ownership transitions, there are seven major stakeholder groups that will sometimes have competing wants and needs that must be identified and brought into alignment.
Balancing Modes of Prioritization and Career Progression
If your workload prioritization seems impossible, try looking at it from a higher-level of prioritization. We all must prioritize in life and at work. Our outcomes are heavily impacted by how effective we are at prioritization.
Problem-Resolution Cost Pyramid - Earlier is Always Better
An easy way to visualize the cost of problem resolution at different stages of construction is with this pyramid. The cost of the problem is the cost of the problem (1X). Finding it ahead of time minimizes the costs and maximizes customer satisfaction.