For construction companies considering a transfer of ownership, succession planning is a powerful process with tools that can ensure a smooth transition. But even the best-laid plans can go awry if the company hasn’t included one of their most important business partners, their surety.
Unexpected Outcomes
As part of their succession planning, a construction company implemented a partial Employee Stock Ownership Plan (ESOP) which would support long-term employee retention. Their choice, however, triggered an unexpected outcome, namely their ability to retain their surety credit.