Employee stock ownership plans (ESOPs) continue to be a popular ownership strategy for firms in the architecture, engineering and environmental consulting industry. In fact, A/E firms are over-represented among the largest ESOP-owned companies in the…
Executive Corner: A Shifting Outlook for the A/E Industry
For the A/E industry, 2024 ended with widespread optimism, strong contract backlogs and record financial performance for many firms. This is based…
Executive Corner: Gen X Takes Over the C-Suite, With a Little Help From the Millennials
In 2024, the youngest of the Baby Boomers will turn 60, and by the end of the decade, all members of this generation will exceed age 65 (the average retirement…
Executive Corner: The Impact on Valuation of Section 174 Changes (R&D Expense Deductibility)
Although the research and development (R&D) tax credit has existed since the 1980s, it’s only been during the last decade or so that evolution in the tax code has expanded eligibility for this credit and popularized the tax strategy among architecture,…
Executive Corner: Two Keys to a Successful A/E Practice: Financial Discipline and Strong Ownership Culture
Through the last 25 years, I’ve had the pleasure of working with hundreds of A/E and environmental consulting firms of all sizes across the United States and abroad. Of the firms that have enjoyed sustained growth and consistent profitability through…
Executive Corner: Despite Indicators, A/E Sector May Avoid a Looming Economic Recession
All the usual warning signs point to a potential U.S. recession, beginning as early as Q3 of 2023. We have an inverted yield curve with short-term interest rates significantly exceeding long-term rates due to aggressive monetary policy actions by the…
Executive Corner: Inside the Latest A/E Business Valuation and M&A Transaction Study
With economic growth slowing and interest rates rising, it’s not surprising that A/E firm valuation multiples have ebbed from their post-pandemic peaks. The latest valuation statistics from the recently released “A/E Business Valuation and M&A…
Executive Corner: Plowing through the Economic Headwinds
Like any good New Englander, I always await the release of the Farmers’ Almanac this time of year to help plan for the upcoming winter. Based on this year’s ominous predictions from the oracles up in Lewiston, Maine, I’m considering upgrading…
Executive Corner: A Peek Inside the Latest Data-Valuation Trends
The latest valuation statistics from the recently released “A/E Business Valuation and M&A Transactions Study” reveals some interesting trends, including significantly higher valuation multiples for larger firms and higher equity values across the…
Executive Corner: Newly Released A/E Business Valuation and M&A Transactions Study Shows Peak Performance
The latest edition of Rusk O’Brien Gido + Partners’ “A/E Business Valuation and M&A Transactions Study” was released on Jan. 12, 2021, showing that industry firms reached peak financial performance levels and valuations multiples immediately…
