Construction Business

The new owner of the construction company had purchased the company from the prior owner who was retiring. He had worked as foreman and was anxious to give his current foreman a chance at ownership but also needed to take money out of the business to support his family for the foreseeable future. He was concerned about the foreman, who did not have an education concerning business matters.

After doing an analysis of the business and interviewing the foreman, a process of succession planning was initiated that resulted in the foreman making an initial purchase of the shares of stock of the company pursuant to a plan that would have the current owner and the foreman having approximately the same interest in the company in five years. There also was agreement to bring in another owner, someone with a business education, to run the business aspect of the company's operation. The succession plan was drafted and executed. From the succession plan a buy-sell agreement was drafted and signed establishing the value of the firm among them and providing for contingency purchase of ownership shares.