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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

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

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 –

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

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

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

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