Build Your Most Valuable Asset

There are five main value levers that contractors can pull to truly increase the value of the business as measured in long-term return on capital and valuation during a succession.

D. Brown Management Profile Picture
Share
Leadership Tools: Protecting and Growing your most valuable asset. Team, Capabilities, Customers, Operations, and Capital.
  1. Invest in building a management team that can not only manage the business without you but can actually accelerate growth.  
  2. Invest in building operational capabilities for project types and customers that have barriers to entry from competitors.  
  3. Delight your customers building a strong reputation and recurring work.
  4. Optimize your operations through training, equipment, technology and process improvements to be extremely competitive.  
  5. Manage your capital effectively minimizing cash tied up for operations.  

There is no deal structure that can be put together for a succession that will create value.  Deal structures can transfer value efficiently but cannot create value. 

True value is only created by constantly pulling on all of these levers making them part of the DNA of the business.  We help contractors in all these areas.


Schedule a call with us to learn more




Complexity of Thought and Planning Time Span
There are multiple dimensions of talent including personality traits, IQ, EQ, desire, knowledge and experience. One of the critical dimensions is what Elliott Jaques called “Time Span of Discretion” which is essentially a combination of:
Technology and Results - Ensure Alignment
For some, change is exciting, and this includes technology. Technology has dramatically changed the construction industry but that does not mean all technology creates results. Are you achieving the results you want from your technology?
Cash Flow and the 5Cs of Credit - Collateral
The 4th of the 5Cs of Credit is how much and what type of collateral the contractor will put up as a guarantee. The collateral requirements change significantly as contractors grow.