Architecture & Engineering Firms

Even if you’re not currently thinking about a transaction, building these top buyer and seller considerations into your architecture or engineering firm’s financial reporting and forecasting will ensure you’ll be ready when opportunity comes knocking. 

There are five aspects of due diligence that create a sensible success strategy even if you’re not in the market for a buyer or an acquisition right now. If or when you are interested in pursuing an M&A opportunity, these five considerations also position you well among potential buyers.

A common obstacle in assessing the fair value of an architecture and engineering (A&E) firm is getting buyers and sellers to agree on what the business is worth. Sellers who understand how their business is valued are in a better position to make sure they are not leaving money on the table.  

We continue our A&E trend discussion with trusted Clayton & McKervey partner and Zweig Group principal Jamie Claire Kiser. In this installment, we discuss critical ownership trends to keep in mind. One of the biggest trends is the significant uptick in private equity participation and what this means for firm owners.

Trusted C&M partner and Zweig Group principal Jamie Claire Kiser continues her conversation about A&E trends, this time discussing critical staffing drivers that may impact A&E firms in 2022 and beyond. As those of us working in professional service firms know first-hand, attracting and retaining people is the top issue.

When it comes to Key Performance Indicators (KPIs) for A&E firms, conventional wisdom suggests that healthier businesses always have bigger numbers. While that’s generally true, there can be a lot more to metrics than just whether they’re going up or down.   What’s optimal for the size, growth stage, and market considerations for one business won’t necessarily be right for yours.

The dual pressures of emerging inflation and the “Great Resignation” have prompted A&E industry leaders to rethink their approach to attracting and retaining the top employees they need to stay competitive.

A&E firms have faced a flurry of changes in the past few years. From tax laws to workforce trends to coronavirus impacts, leaders must manage increasing amounts of uncertainty. To gain some clarity, we spoke to Jamie Claire Kiser – a managing principal at Zweig Group – about trends affecting the A&E industry.

By consolidating operations with allied companies or expanding their consumer base through strategic mergers, many businesses were able to survive the pandemic. As businesses attempt to return to “normal” it’s important for sellers to prove the staying power of their company and be prepared for higher scrutiny into their valuations.

Employee attraction and retention is a vital competitive factor for architecture and engineering (A&E) firms. Beyond the obvious price and technical considerations, success on any project really comes down to the skill and judgment of the people who are going to execute it.

Even if you don’t have current plans to buy or sell, now is a great time for you to refresh your awareness of M&A essentials. As an architecture or engineering firm owner, M&A considerations should be part of your long-term strategic planning whether or not you have a specific deal in mind.

In this video, we discuss essential preparation for a transaction to ensure you and your business are in the best possible position. Watch as A&E Industry Leader Kevin Johns, Private Client Services Leader Margaret Amsden and Zweig Group Managing Director Jamie Clair Kiser share insights on transactions and related estate planning considerations.