MCC Construction Zone Succession Planning Strategies Richard P. Higgins, CPA
B
usiness owners know that a succession plan is needed for the company to continue operating without them. Unfortunately, most owners do not have a viable plan in place to transfer leadership. Instead, they hope that a family member or employee will be available to fill their shoes. This tactic can lead to a myriad of problems that can put the operations of the company at risk. A qualified successor may not be readily available and trained for the job. A succession plan identifies who will take over leadership of the business when the current owner phases out. The plan generally states how and when the successor will be trained. It is designed to position the future leader for success and to ensure that the business continues to operate. The 2021 Ownership Transfer and Management Succession Industry Survey found that 15% of the owner participants want to transition ownership in the next one to two years, 33% in three to five years, and another 33% in five to 10 years. More than three quarters (81%) of the nearly 400 construction company owners and C-Suite executives surveyed expect to transition ownership within the next 10 years. 9 | Page
McCarthy.CPA
