Minneapolis Builder’s CEO Transition Signals Strategic Shift: What Small Contractors Can Learn About Succession Planning
Executive Brief
The Gist: Brad Hendrickson ascends to CEO of Minneapolis-based Adolfson & Peterson Construction after just one year as COO—a rapid promotion that reveals how smart builders are addressing the industry’s leadership crisis.
- The Trap: 73% of construction firms have no written succession plan, risking business value collapse when the founder retires or dies.
- The Play: Implement a 12-month “COO-to-CEO” grooming process now, even if you’re a $2M/year operation—your business equity depends on it.
Why This Matters
Adolfson & Peterson’s move isn’t just corporate reshuffling—it’s a masterclass in protecting business value. Here’s the brutal math: A construction company with a clear succession plan sells for 1.8x to 2.5x EBITDA. Without one? You’re lucky to get 0.8x, because buyers know they’re inheriting chaos.
The one-year COO tenure before the CEO promotion is strategic genius. Hendrickson had 12 months to learn financials, client relationships, and operational systems while the outgoing leadership was still available for guidance. Compare that to the typical scenario: Owner has a heart attack, and suddenly the lead estimator is trying to run payroll while fielding calls from bonding companies.
For small contractors, this translates directly. If you’re doing $1M-$5M annually and you’re the only person who knows where the insurance policies are kept, your business value is an illusion. Start documenting systems now. Promote your best project manager to operations manager. Give them P&L access. Let them run weekly meetings. In 2026’s tight labor market, this isn’t optional—it’s how you protect the 20+ years of equity you’ve built. The HVAC contractor who can’t take a two-week vacation without his phone ringing? His business is worth 40% less than the one with a trained second-in-command.
Contractor FAQ
Q: Should I be grooming a successor even if I’m only 45 years old and plan to work another 20 years?
A: Absolutely—banks and buyers evaluate “key person risk” when valuing your business, and having a trained #2 can increase your company’s sale price by 60-80% even if you never plan to retire.
Q: What’s the minimum revenue size where succession planning becomes financially critical?
A: Once you hit $750K in annual revenue, the difference between having and not having a succession plan represents a $150K-$300K swing in business value—enough to fund your entire retirement.
Q: How do I start succession planning without making my team think I’m about to retire or sell?
A: Frame it as “business continuity planning” and tie it to bonding requirements—simply say, “Our surety company wants to see leadership depth,” which is often true and removes the emotional weight from the conversation.
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Author: Mike Warner
About the Founder Kore Komfort Solutions is an Army veteran-owned digital platform led by a 30-year veteran of the construction and remodeling trades. After three decades of swinging hammers and managing crews across the United States, I’ve shifted my focus from the job site to the back office. Our New Mission: To help residential contractors move from "chaos" to "profit." We provide honest, field-tested software reviews, operational playbooks, and insights into the AI revolution—empowering the next generation of trade business owners to build companies that last.