Business Succession Planning for Contractors

Developing a transition plan is a process, not an event.

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To assist in planning, we use our knowledge of your company, your personal goals, and all the external forces affecting your construction company. Working with a team of consultants that understands your industry is critical.

With our vast experience serving the construction industry, our 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.

Examples of recent succession plan successes:

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Four Generation Construction Company

We have assisted an industrial contractor, who has been a client for more than 15 years, in transitioning the company to three different generations of owners. A unique aspect of the plan for this company is that the third and fourth generations of owners began to buy into the business while the first and second generations, respectively, still held majority control. The company currently has nine owners and is in the process of integrating the fourth generation of owners.

Working with the company, they came to the conclusion that getting stock in the hands of qualified employees early in the process was important to the culture and business plans for their business. As the second generation retires and sells its stock, the owners know that the business is in good hands with a fourth generation in training for controlling ownership someday.

Industrial Contractor

An industrial building contractor who has been a client for many years came to our firm initially for audit and tax services, and after discussions about their long term goals, decided to 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 professional helped them develop a strategy to reduce holdings in the company through a series of redemptions. We successfully modeled a redemption program which preserved adequate equity reserve to satisfy the bonding program and navigated the tricky tax rules surrounding partial redemptions of stock. In the process, we have assisted them in successfully transitioning the company to a third generation of owners. The company currently has 16 owners, including a brand new fourth generation of owners.