By: Wayne Messick, AFSB, Old Republic Surety
Like it or not, ownership and management changes are a certainty in construction. According to FMI, every construction company that isn’t publicly traded will go through an ownership transition — usually every 25 to 30 years. With baby-boomer retirements on the rise, those changes are occurring with greater frequency. A business continuity plan can ensure a smooth transition when a company changes hands. This is especially the case if an owner dies suddenly. A formal plan gives the company’s family, employees, and customers — as well as the surety company — assurances that the company will be able to stay in business and continue its work program. A previous post by Scott Albrinck, “Expect the Unexpected: The Importance of a Solid Continuity Plan,” explains why you need a plan and what to include when writing one. In this post, we’ll look at lessons learned from firms that have gone through an ownership change.