Private Equity and Construction

The Construction Industry is Seeing Large Shifts With Several Interrelated Trends.

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All of the trends that are changing the construction industry today require economies of scale and capital to truly take advantage of. 

Succession. Private Equity and Construction.

The biggest winners will be those leaders who can effectively balance their vision for what’s next in the industry with relentless and disciplined execution while leveraging capital.  

Private Equity firms are seeing that trend and taking a bigger interest in the construction market. They have a keen interest in scaling the Return on Capital of 20-35% that contractors operate at.  

Their model has started to shift from typically asset heavy purchases to a growth mindset with the construction market starting to check both of those boxes.  

A recent ENR article pointed out to increased PE deals in the industry.

PE can be a solid exit strategy for the right type of contractor and anything done to make your company truly valuable to a PE firm will increase it’s value all around.  

Invest a few days in reading about the industry, how the firms operate, and how typical deals are structured before you start exploring this further:


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....

Measure What Matters - OKRs
John Doerr just released a new book on the use of Objectives and Key Results (OKRs) to grow organizations. This is a phenomenal tool and can be used to align contractors vertically as well as horizontally.
Aligning Projects and People
The business of building is largely about aligning projects and people. Contractors exist to build projects. People design and build the projects. The management team, structure, and systems bring it all together.
Building a Systems Development Team - Apps
Can’t I just buy an app for that? One of the biggest shifts in the construction technology ecosystem is the transition from a few large monolithic packages to a mixed regime of comprehensive software packages and smaller apps.