Practical Ways to Structure Your Company for a Sale

If you look at the statistics, you'll find that two-thirds of construction companies are unsaleable. If you are to gauge your current company's status, do you think it is structured in a way that it can be sold either internally or externally? Are you setting yourself up for success come sale time?  My conversation with my guests, Matt Drake and Scott Duncan, revolve around this very important topic in this week's Construction Genius podcast episode. Matt and Scott are co-founders of BaseRock Partners. We discuss three things in this episode that you'll find helpful. how to structure your company how to grow your company, and  the different options available to you for selling your company Join our discussion as we look into the best ways that you can set up your construction company for success. Tune in now! Discussion Points: 0:00 Introduction1:48 Why ⅔ of construction companies are not saleable5:07 Whether internally or externally, what distinguishes companies that are saleable?7:14 Matt and Scott share how companies can become more saleable10:56 Who can benefit the most from ESOPs?12:38 The right reasons for considering ESOPs14:34 Ensuring a smooth ESOP transition16:23 How companies succeed with their ESOP transition17:55 Matt talks about internal ownership transfer19:40 Scott discusses the importance of objectives in internal ownership transfer 20:51 Risks that come along with setting your company up for success22:32 Fear of taking risks: Is it a generational thing?23:27 Why education and management dept are crucial to be saleable 25:03 Can companies successfully shift from one structure to another?27:36 Why ESOP is the better choice in most situations28:50 How to avoid choosing the wrong team to succeed your company31:16 Matt and Scott's experience with family businesses33:07 Establishing a timeline of success for your company35:52 What makes an ideal board?37:43 Mergers and Acquisitions: two companies are better than one?39:02 The "BaseRock Difference" and how it helps companies become attractive About the Guest:  Matt Drake and Scott Duncan are co-founders of BaseRock Partners, an investment bank that serves the engineering and construction industries. Matt and Scott are trusted advisors to owners, industry partners, and private equity firms.  They operate on their four-pronged vision which they call the "BaseRock Difference": "client first" mantra, industry expertise, industry focused solutions, and team oriented, education-based approach. Resources:  Need Consultation for Your Company's Transaction Options? Contact Matt Drake and Scott Duncan https://baserockpartners.com/ Follow Matthew Drake on Linkedin https://www.linkedin.com/in/matthewdrake2010/ Follow Scott Duncan on Linkedin https://www.linkedin.com/in/scott-duncan-1943693/ Restaurants:  https://www.pappyssmokehouse.com/ https://saltandsmokebbq.com/ https://gquebbq.com/ Do Your Project Executives Need to Become Better Leaders?  Book a 10-minute call with Eric Anderton to see if/how he can help (https://10minutes.youcanbook.me/)  Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to the Construction Genius: A Leadership Master-Class Podcast on Apple Podcasts, Spotify, and Stitcher. Thank you for tuning in!