As I reflect on my 36 years in the advisory industry, I find it valuable to share insights on what I prioritize when evaluating A/E firms and understanding the drivers of their value. Many appraisers heavily rely on experience and key metrics to determine…
Executive Corner: Will M&A Drive Value in 2025?
The value of a business is fundamentally defined as its expected future cash flow, discounted to their present using a risk-adjusted rate of return.…
Executive Corner: Ownership Transition Planning: Begin at the End
The oracle of Omaha, Warren Buffett, once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.” I’m often…
Executive Corner: Manage Conflicts of Interest When Selling Your Shares Internally or Externally
The “Executive Corner” column has discussed conflicts of interest in the past, but it’s worth revisiting to remind companies of their fiduciary obligations to minority shareholders, especially considering the recent number of mergers and acquisitions…
Executive Corner: Could A/E Firms Avoid a Recession?
The previous “Executive Corner” column noted that despite the looming economic conditions, the A/E sector may avoid a recession with continued growth supported by strengthening backlogs. This column includes some more empirical evidence that supports this…
Executive Corner: Where Are A/E Values Heading?
With so much turmoil in the economy and stock market, many A/E business owners are probably wondering what this may mean for their own firm’s value. Interestingly, while the stock and debt markets are going through turmoil, many firms in the A/E industry—both…
Executive Corner: Considering M&A? Don’t Leave Out Firms that Have an ESOP
2021 was one of the hottest years for M&A activities we have ever seen. The trend is expected to continue through 2022 as more A/E firms explore M&A to meet their strategic objectives for growth, market share and talent acquisition to improve…
Executive Corner: The Pandemic’s Impact on A/E Firm Ownership
A psychological shift seems to be taking place as we begin to migrate back to “normal.” More Americans are shifting their views on retirement, with many considering retiring earlier than initially planned. In a recent phone call, an A/E firm owner…
Executive Corner: What Is Your Ownership Strategy?
Does your firm have an ownership strategy that clearly defines how you will be able to exit your firm? Are you relying on selling your firm to a third party or the next generation of leaders? According to the Census Bureau (and assuming age 67 for retirement),…
Executive Corner: Is Your Business Focus Hurting Profitability?
Companies often say they’re client-, design- or employee-focused. The purpose of identifying your focus helps to communicate how you execute business strategies with your employees, clients, competitors and shareholders. Firms employ these focused strategies…
