Succession Planning
Developing a transition plan is a process not an event.
Work with a team of succession planning professionals who understand your industry.
To assist in succession planning, we use our knowledge of your company, your personal goals, and all the external forces affecting your construction company. With our experience serving the construction industry, this vantage point allows us to take an integrated approach to planning, by considering all aspects of your business, including bonding, tax, financial, and personal goals. We have helped create transition plans for more than 50 of our contractor clients.
Client Stories
Four-Generation Construction Company
Succession planning
An industrial contractor, who had been a client for more than 15 years, was ready to transition the company to three different generations of owners, a succession plan in which the third and fourth generations of owners began to buy into the business while the first and second generations still held majority control. The company currently has nine owners and is in the process of integrating the fourth generation of owners. Getting stock in the hands of qualified employees early in the process was important to the company’s culture and business plans. As the second generation retires and sells its stock, the owners know the business is in good hands with a fourth generation in training for controlling ownership someday.
Industrial Contractor
Transition planning
After discussing long-term goals with the Aldrich team, an industrial building contractor who had been an audit and tax client for many years engaged us to assist with a transition plan. The president and other key owners had identified key personnel for transition but were at a loss as to how to help the next generation pay for the company stock. Our contractor succession planning professionals helped them develop a strategy to reduce holdings in the company through a series of redemptions which preserved adequate equity reserve to satisfy the bonding program and navigated the tricky tax rules surrounding partial redemptions of stock. The company successfully transitioned to the third generation of owners and now has 16 owners, including a brand new fourth generation.
Construction Business Owner
Financial planning
Jason owned a successful construction business. He was extremely busy and wanted to spend more time with his family but was afraid he was too young to sell his business. We met with Jason and his wife to talk through their financial and family goals. After going through the financial planning process, we were able to present them with several options. Jason realized he could sell his business and still enjoy the lifestyle he and his family desired. With the proceeds from the sale, he invested in a diversified portfolio of securities and real estate. This portfolio provides him the income he needs and experiences less volatility than his closely-held business.
