The Construction Index debates the risks of quoted company ownership in the Construction sector
June 10, 2016
Phil Bishop debates the pros and cons of the private vs. quoted company ownership model for Britain’s construction sector, with extensive comments from our Business Risk adviser, Nick Hood.
“Probably the most cogent reason why the family-owned, private ownership model is safer is because of the sheer difficulty of expressing in accounting terms what construction businesses do,” Hood says ….
“Risk management and risk awareness is another area where the difference between the business models is crucial. Privately owned companies are usually much more sensitive to their risk profile because it’s their wealth, their family’s jobs and their reputations both in the business and the local communities that will go up in smoke if they get it wrong …..”