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.


Ownership Transition Timelines
Continue building value in your business, yourself and your key team members with a good succession strategy....

Ownership Transition Timelines
Continue building value in your business, yourself and your key team members with a good succession strategy....

Sundt and Growth of Wealth
One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about the perks owners get. The biggest “perk” to being an owner of a construction company is the opportunity for a great investment.
Leading vs Lagging
Clearly defining the outcome you want in clearly measurable terms is critically important so that you and everyone else knows exactly what winning looks like. As challenging as defining clear measurable outcomes is; that is the easiest part.
The Journey (Length, Complexity, Ambiguity, and Guardrails)
Nearly everyone can get in their vehicle and drive to a destination at the end of a two-lane road. No single person can look at open land, select a place to build a city, build that city, build the infrastructure including roads, and build the vehicles.