Plan Now for the Successful Transition of Leadership
Marty McCarthy’s Article is Published in Construction Executive’s
Managing Your Business
Focused on You. Dedicated to Your Success.
November 13, 2017

My article entitled Plan Now for the Successful Transition of Leadership was published on October 20, 2017, in Construction Executive’s e-newsletter Managing Your Business . Both are published by the Associated Builders and Contractors (ABC) .

In the article I outline what contractors need to do now to transition the leadership of their company to the next generation, including:
  • Identifying the Next Leader
  • Preparing for the Transition
  • Knowing the Financial Implications 

Contractors should also determine the fair market value of the business five years before the transition so they know how much the business is worth before implementing a succession plan. A proper business valuation should be done by a construction accountant or another qualified industry expert.

In addition, contractors should consider how the succession plan will fund their retirement and provide financial security for their family. Contractors should discuss the succession plan with their lawyer, accountant, insurance agent, and financial advisor to ensure that the plan is viable and can be executed according to their wishes. It is also a good idea to address retirement and estate planning before the transition.
 
Please feel free to contact me at 610.828.1900 or Marty.McCarthy@MCC-CPAs.com to discuss how you can prepare to successfully transition your company to the next generation. I am always happy to help.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).