Succession Planning: Ensuring Your Company’s Future

For contractors, running a successful business isn’t just about today, it’s about securing the long-term health and continuity of your company. Succession planning is a critical phase to prepare your business for the future, even after you step away.

Recently, Exit Consulting Group presented a webinar for SMACNA members titled Exit Readiness: How Prepared Are You and Your Business? CEO Andrea Steinbrenner began with some hard-hitting statistics: Studies show over 70% of businesses on the market fail to sell within a year, and 75% of owners regret their exit decision within 12 months. Only about 10% of contractors report a truly successful transition.

Those numbers are eye-opening for many, especially as nearly half of our industry’s leaders are expected to retire in the next decade. Without a clear plan, companies risk leadership gaps, disrupted operations and lost value.

But here’s the good news: With some careful thought and planning, you can take control of your exit and shape
the future of your business on your own terms.

THE EMOTIONAL SIDE OF EXITING

“The emotional impact is huge,” Steinbrenner said. “It’s super important to spend time on the ‘soft side’ of your exit before you even get to the transaction.”

Taking time to reflect on your personal goals and where you see yourself in your future is just as important as preparing the financial and operational details.

Core Elements Of A Strong Exit Stategy

OWNER READINESS
• What motivates your exit — financial security, legacy, continued involvement?
• Are you emotionally and financially prepared for life after the business?
• What will bring you fulfillment in your next chapter?

BUSINESS READINESS
• Can the company operate without your daily involvement?
• Who manages key functions like payroll, cash flow or client relationships?
• Would the business remain profitable if you stepped away for a month?

MARKET READINESS
• Review strengths, weaknesses, opportunities and threats (SWOT analysis)
• Understand after-tax proceeds to set realistic financial expectations.
• Consider whether an inside buyer (family, key employee, ESOP) or outside buyer (strategic or private) is the right fit.

At the end of the day, succession planning is about more than dollars and deals. It’s about people and the future they’ll inherit. Taking time to plan now will help create peace of mind for yourself, your family and your team so you can step away with confidence when the time comes, knowing your legacy will continue to stand strong.