Succession Planning for a Three-Generation Family Business

The problem: 

When a large, third generation New Hampshire specialty contractor was faced with the reality that its president – and patriarch – was nearing retirement, ownership and management had to make important, strategic and emotional decisions. They needed a group of professionals who could provide expertise and guidance on everything from developing the buy-out and management structure to valuing the business. Barriers to the transition process included management’s concerns regarding the accuracy of the company’s financial position and their lack of a trusted partner with the expertise necessary to get the effort off the ground.

Our solution: 

Immediately upon engaging our firm, ARB guided the family company through a year-long succession planning process. During our initial assessment of the company, we identified a number of accounting and tax issues emanating from years past. Step one involved forensic accounting by our construction team to reconstruct certain historical financial transactions for the purpose of correcting their financial statements. As we moved on to rectifying the company’s financial accounting records, we were able to accurately evaluate their financial position and provide management with added assurance. The final step was to incorporate the facts from our historic review into the design and execution of a business succession plan to give all three generations a clear understanding of the company’s future. ARB was a catalyst in the transition process and provided management with options and strategies to move forward.

The result: 

Not only does the family now have clarity around the company’s future management, their comprehensive and executed succession plan – along with their adjusted financial statements – gives them access to increased surety credit and a wealth of confidence in their plan as they take the company into the future.

Learn more about ARB’s Construction Group here.