When a majority owner in a long-established second-generation specialty construction, project management, engineering & maintenance company was ready to reduce his role while maintaining his investment, he engaged Quest.
Given the owner’s desire to see existing employees assume leadership roles, Quest’s job was to create a third generation of leadership without erasing the majority owner’s legacy. With this in mind, Quest educated the owner on the options available, which included a third party sale or private equity transaction, an ESOP, a management buyout, or key employee buyout in part.
Ultimately, we opted for a solution focused on internal succession. Our customer selected two specific leaders he felt could improve and grow the business and maintained a significant minority stake in the company to preserve his interest while decreasing his overall workload.
As a result of the internal succession choice, in addition to the company nearly doubling in size in a short period of time, our customer was able to achieve all of his goals without compromising the value of his investment and his legacy.