Spring 2014 issue of Horizons

CONSTRUCTION

Succession Planning: An Introduction for Construction Companies by Frank Hogg, CPA & Ken Van Bree, CPA & Chris Coleman, CPA

S uccession planning, like estate planning, is a very important yet often overlooked or delayed topic of discussion. People do not want to talk about their incapacitation, retirement or death. To talk about your successor means you have to relinquish control, plan for a sale of a business that you have overseen and inherently trust another with one of your most valuable assets. Between daily responsibilities of running and operating a business, succession planning can be an easy topic to continually push off until tomorrow. However, construction business owners who have dealt with ownership transitions recognize that succession planning is wisely invested time.

Strong management succession will increase the business’ value, in addition to providing other benefits.

Building Value Building value in your construction

company is important. In most other areas of the business, there are formal processes and plans that are followed to reduce costs and uncertainties and build value. For example, working leads, recruiting talent and tracking job costs are all step by step processes within your business. Succession planning should also be a step by step process to mitigate risk and build value.

page 62 | horizons Spring 2014