Cyclical construction industry creates unique challenges for succession planning
In the middle of an extended construction industry expansion across West Michigan, most contractors are focused on running their businesses, rather than transitioning them to new ownership.
But the current booming market that’s boosting companies’ balance sheets could provide the ideal conditions for owners to sell and maximize their return on investment.
“In terms of selling at the peak, right now it would be selling at the peak of profitability,” said Max Friar, managing partner of Grand Rapids-based M&A firm Calder Capital LLC. “A lot of these people are really just killing it from a profit perspective. They’re probably not selling at the peak of multiples. I think that’s passed.”