Articles & Alerts

ANCHIN HAS ONCE AGAIN BEEN RECOGNIZED BY CONSTRUCTION EXECUTIVE IN THE TOP 50 CONSTRUCTION ACCOUNTING FIRMS.™

Anchin’s Phillip Ross shared some key considerations for succession planning:

Though many aspects of the construction industry necessitate robust planning and strategy, one factor that is sometimes overlooked is planning for succession and transition. A well-crafted transition plan will provide for an exit strategy for owners and allow for identification of future owners who will be able to fill leadership roles and maintain growth for any company. Construction owners should consider the long-term future of their businesses while also striving to efficiently maintain the goals of operational, organizational and financial viability. A robust plan can also help enhance earnings and sustain cash flow while enacting a foundation for the next generation of leadership. Proper planning can also lead to a boost in operational efficiency and margins, higher valuation and increased ROI, which will also result in a higher value for the business.

One vital task in this process is for owners to understand the value of their companies and, in turn, to oversee a formal valuation. This valuation can establish a baseline for both owners that are exiting as well as incoming owners. An additional and crucial step is to involve attorneys and accountants in the transition plan, as they can advise on the legal, financial, tax and business issues, in addition to the thoroughness of the process. Construction firms that are prepared for this process already will be able to efficiently and intelligently streamline the leadership transition without any obstacles or worries about delays or slowdowns.