b'ACCOUNTING COLUMNPREPARING FOR THE NEXT CHAPTER IN CONSTRUCTION: 2025 MNP REPORTTHE REALITY OF SUCCESSION PLANNINGBY BRIAN LAVECK,IN THE CONSTRUCTION INDUSTRY PARTNER, MNP REAL ESTATE & CONSTRUCTION SERVICESn a new MNP report, 191With 30 per cent of constructionSUCCESSION PLANNING I business owners in thebusiness owners expecting to transitionCHECKLISTconstruction industry werein the next five years and 13 per cent1. Define your timeline and objectives.surveyed between September 24 andcurrently transitioning, the pressure2. Identify potential successors.November 13, 2024. Conducted byis mounting. But with only 29 per Ipsos on behalf of MNP, the researchcent having a formal transition plan,3. Conduct a business valuation.findings reflect a broad cross-sectionthis sets the stage for rushed decisions,4. Work with advisors to assessof construction business ownerslast-minute deals, reduced businesstransition costs and opportunities.across Canada. The findings providevaluations and potential closures due to5.Document and communicate a data-driven snapshot of how ownerslack of preparation.your plan.are preparing, or not preparing,6. Develop a leadership transitionfor succession.CHALLENGESstrategy.Financial Planning: More than 60Our research shows that most KEY FINDINGS per cent of respondents have not Lack of Succession Plans: Less thantaken tax-planning steps to maximizeconstruction business owners understand the importance of succession planning, one-third of owners have a formalincome from business transitions. yet many havent taken the necessary succession plan. Emergency Preparedness: Only 23 steps to make sure they have a smooth per cent have an emergency plan for Upcoming Transitions: Almost one-third plan to transition ownershipan unplanned exit. transition when the time comes. And for within the next five years, primarily10 per cent of respondents, they dont Residential Construction: Owners due to retirement. in residential construction are theknow where to start. least likely to have a succession plan.Identified Successors: More than half of respondents haveWhether the plan is to sell, transition to identified potential successors, butMost construction business owners family or explore employee ownership, a only one-third have mapped out94 per centtrack their cashflow andconstruction businesss long-term success the transition. economic conditions at least once perdepends on the steps taken today. month due to the importance they These key findings illustrate thehave on their day-to-day operations.Starting early can make a significant growing need for thoughtful successionHowever, only 55 per cent of ownersimpact on the outcome of a succession planning. Many owners find themselvesconsider their succession planningplan. Consulting with tax, legal, business rushed into a sale or struggling towith the same frequency, despite itsand transition advisors helps ensure the secure the best financial outcome forimportance for their and their businesss their transition. long-term outlook.exit strategy is thoughtful and effective. With careful planning, succession doesnt have to be overwhelming. Secure your Empowering People businesss future, and yours, today.& Energizing CommunitiesLearn more and download Preparing for the Next Chapter in Construction: Whether its off-grid, a grid-tie solar system, an EV charger, or small2025 MNP Report at mnp.ca/en/wind turbinesour highly trained team will help you get the job doneclients/real-estate-and-construction/on time and on budget. preparing-for-the-next-chapter-in-Let us take care of the details so you can take care of your work. construction-2025-mnp-report.www.eecol.com #alwaysatEECOL For more information on starting your Kamloops (205) 372-0630 Kelowna (250) 762-0557 Cranbrook (250) 426-25551240 DALHOUSIE DRIVE UNIT #1, 825 MCCURDY PLACE 700 INDUSTRIAL ROAD #1 succession plan, contact Brian Laveck at 250-979-1731 or brian.laveck@mnp.ca.16 SOUTHERN INTERIOR CONSTRUCTION ASSOCIATION'