b'THE OFFICIAL NFBA MAGAZINEENSURING A SMOOTH TRANSITION OF OWNERSHIP IN A CONSTRUCTION COMPANYBUSINESS MANAGEMENTMichael Clancy FMI CorporationT ransfer of ownership of a constructionCorporation. "There are a lot of company isn\'t as simple as signing somethings owners do in the business paperwork and handing over a set of keys.that they don\'t even realize they Owners must understand their options, along withare doing. For example, they often what they can do to maximize company value priordecide who the construction company is and isn\'t to selling. Most importantly, owners must recognizegoing to do work for. The problem is that these why many construction business succession effortsdecisions typically aren\'t based on pre-defined failso they can proactively take steps to ensurecriteria; they are based on years of experience and a successful, lucrative exit of their own. intuition. How do you transfer that kind of thinking There are two primary elements of businessto the next generation of management?"succession: ownership transfer and managementYou can\'tat least not in the final days leading up succession. Ownership transfer is transactional; itto the moment when the owner walks out the door. is largely about making sure the financial and legalThis is why continuity planning is so important. aspects are handled properly. The managementOwners should be developing the people behind piece, on the other hand, is where good planningthem well in advance of putting the company up becomes crucial. for sale. In fact, the typical ownership/management "The management succession piece can be reallytransition takes 8-12 years, according to Clancy.tough," says Mike Clancy, principal at FMIThere are a handful of common reasons why 8 / FRAME BUILDER - VOL4 6'