Ownership Transition Timelines

While it is possible for ownership transition timelines to be accelerated, that largely depends on the current condition of the company, including the management team and current owner.

D. Brown Management Profile Picture
Share
Succession: 5-7 Years to Prepare the Team and 12-18 Months to Work Through the Transaction.

The timelines cited below are for a contractor with a very hands-on, current owner with a functioning management team but not one that is ready to fully run the business.  

  • There is at least one leader within the management team who has expressed interest in future ownership while also demonstrating the drive and competencies required.  
  • The business is performing well, having enough capital and being able to regenerate its working capital every 4 or 5 years after taxes.
  • The current owner of the business is actively working on setting the company up for succession, including knowing what they want to do after selling the business.   
  • Starting from this foundation, assume that preparing the team will take 5-7 years and the transaction details will take 12-18 months.  
  • The single largest factor in how much these can be shortened is the speed of human development and a foundation of trust between the parties.  

If you want to discuss your particular situation, we'd love to have a conversation.


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....

Construction Benchmarks, Trends, Forecasts, and Predictions
Two of the most highly leveraged choices that leaders of contractors make are about market strategy and major resource allocations. Robust information systems about the external market are a critical part of this decision-making process.
Exponential Growth of Technology
Technology innovation has always occurred at an exponential rate and has been starting to impact the $1 trillion construction industry at increasing rates.
Lean Principle - 5S and Setting up a Productivity Work Environment
5S is a foundational tool and habit for continuous improvement. The 5S process is to daily execution what eating a healthy breakfast and exercising is to your health. Do it consistently every day and it will change your life.