Jul 16, 2019
Shifting Ownership of a
Construction Company to the Next Generation
Doug Reitz and his partner are
currently 2 years into a 5-year process, purchasing Mark Wilson
Construction from the founder.
In this episode of Construction
Genius, we discuss Doug’s successes, challenges, and lessons
learned as he’s embarked on the process of becoming a partner in a
successful construction company.
Throughout Doug's career in the
construction industry, he has been fortunate to have worked in
positions that span from Project Clerk to President. He has
completed or provided oversight through all delivery methods in
projects related to the Medical, Educational, Public Works,
Industrial and Religious fields. During this time he has worked
closely with Clients, Contractors, Inspectors, and Design
Professionals seeing all sides of a construction project giving him
valuable insight into the entire construction process.
In addition to teaching courses
at Fresno State in the late 1990's and early 2000's, Doug has also
had the opportunity to speak with local contractors, design
professionals, and at industry events about the leadership concepts
of "Listen. Plan. Build.", "Communicate & Collaborate", and
"Safety, Quality, Time and Cost".
the ownership transition drove volume
tension between volume, risk, and profit
to look for in a second-generation partnership
importance of sharing a common business
Doug got to know his partner by building a project
the “earn out” model affected bonding, debt, and cash
communication and collaboration is essential to a successful
- Defining and aligning each partner’s
importance of leaving your ego at the door in order to have
to divide up responsibilities between the new partners
the “S.O.A.P” model to build a successful construction
importance of understanding financials and accounting, including
cash flow, bonding capacity and debt and how they relate to
case scenario planning
makes the final decision in a 50/50 partnership?
- Handling conflict using the “listen, plan,
the transition as early as possible and have the new partners dig
into the financials
- Communicate and collaborate to ensure
- Action items:
- Openly discuss the transition and write everything down before
bringing in CPAs and attorneys
- Then consult with CPAs and attorneys on the legality of the
transition and new structure
- Get the transition contracts in place as early as possible
- Do worse case scenario planning and clearly spell out risks and
how each party will be protected
- Allow conflict, find a balanced approach, don’t go to your
Doug Reitz Website
Doug Reitz LinkedIn
Doug Reitz Twitter
Mark Wilson Construction: Website
This episode is brought to you by
the Bullet Proof Succession
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