Issue 1 of 9: Strength of the Management Team

Construction Ownership Transition Issue 1 of 9: Strength and Alignment of the Management Team

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Beyond liquidation, nearly 100% of the value of a construction business is based on the post-transition management team's ability to continue profitably growing the business. 

Succession: Ownership Transition Issues - Number 1 Management Team. Nearly 100% of a Contractor's Valuation Beyond Liquidation Value is based on the post-transition management team's ability to continue profitably growing the business.

The exit strategy and deal structure will not materially improve the strength or alignment of the management team, though it could have a significant negative impact.

Those managers with 20-plus years of experience who have made most of the mistakes that can be made, learned their lessons, built the relationships, and still have significant professional runway left are in very short supply. This will continue to get worse over the next 10 years. 

Take a hard look at your management team and what they would look like after an ownership transition.  On a scale of 0-10:

What do you need to do to improve these scores?

What is it worth to improve these scores?


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....

Support Your Team Always
Everything truly important to the long-term success of a contractor comes down to building a strong team with a culture that supports each other; no matter what. Great leaders unite a team together and elevate everyone further than they could imagine.
Project Income Projections
For a contractor to be effectively involved in the early stages of a project beyond understanding the whole project development budget, they must also understand the financing and cash flow of the project.
Prepare Your Business - People
Your people are your business. This is especially true for contractors where nearly 100% of competitive differentiators are the experience of your people. Now we are faced with lots of unknowns and yet we must act decisively.