Employee Stock Ownership Plans (ESOP) are becoming an increasingly popular way for owners of construction companies to exit their business. According to data from The National Center for Employee Ownership, there are 160 ESOP construction companies in California, and almost a quarter of those were formed in the last 5 years. This article will provide …
An Introduction to ESOPs for Construction Companies Read More »
As baby boomers continue inching towards retirement, the continuity plans of construction companies is becoming an increasingly common topic. There are many ways to transition ownership of a business, and this article will address one specific method we’ve seen used by several of our clients when selling their business to key employees, which many call …
If you’ve decided that selling your construction company to a third party is an option that you’re interested in exploring, there are a few key items to consider before leaping in with both feet. How to continue with the company’s bond program and eliminate your liability under the surety’s indemnity agreement are two of those …
Selling Your Construction Business to a Third Party Read More »
This is the second article in a series designed to help construction company owners understand the options for exiting their business. As we discussed in our first article Figuring Out How to Exit Your Construction Business Part I, there are 4 main options that contractors have, which are outlined below: Sale to inside party – …
Exiting Your Construction Business: Sale to Insiders Read More »
When forming a construction business, few people realize that it is almost as hard to exit the business as it is to get started in the first place. It makes sense when you think about it, by the time you are ready to exit your business, you have built decades of important relationships. There is …
Figuring Out the Best Way to Exit Your Construction Business Read More »
If you’re like most owners of construction companies, preparing for your untimely death or disability is not high on your list. Afterall, there are proverbial fires to put out, jobs to finish, bids to submit, and taking the time to plan for what is an unpleasant and hopefully unlikely event to think about does not …
What Happens to Your Construction Business if You Die Tomorrow? Read More »
It used to be very difficult to provide surety bonds to ESOP construction companies, but fortunately that has changed. Part of that is due to the ESOP industry maturing and the structures of ESOP’s becoming much more manageable for surety companies to underwrite. Surety companies have also gained a lot of experience over the last …
How ESOP Construction Companies are Underwritten by Sureties Read More »
Given the limited market for third party buyers of construction companies, ESOP’s present an attractive alternative, but not every company is a good candidate for an ESOP. Fortunately, there are some basic factors that you can evaluate to see if it will make sense for your company. Do you have the key management? Perhaps the …
In our latest video we are going to look at what a work in progress schedule is for contractors. Surety companies require these forms to be completed with the application for bid bonds and performance and payment bonds typically when the bonding needs are over about $1 or $2 million. In this video, we’re going …
What is a Construction Work-In-Progress Schedule Read More »
Contractors often believe the risks included in performance bonds fall solely on surety companies. However, the interests of the contractor and the surety are aligned, because whatever the contractor is obligated to by way of the contract, so is the surety through the performance bond form. Conversely, by indemnifying the surety against loss, the contractor …
3 Risks Contractors Should Look for in Performance Bond Forms Read More »