Engineering Inc. - January/February 2016 - (Page 44)
Mergers and Acquisitions
BY N E I L C H U R M A N
Maximize Potential for a Successful Firm Sale
W
ith industry M&A
tracking at record
levels, many engineering firm owners are likely
wondering if they should sell
their firm.
One of the most important
decisions an owner will make
is what to do when it's finally
time to leave the business.
Some firms will be able to
transition ownership smoothly
from one generation to the
next, but many more will not.
While baby boomers head
for retirement and seek to be
rewarded for the businesses
they've built, millennials are
often reluctant to "buy in" to
firm ownership. This disconnect often makes a sale the
most viable transition option.
If you're considering selling
your firm, preparation is the
key to success. Here are a few
suggestions:
1. Get a head start in years,
not months. The earlier
you can understand your
options and choose a path
for transition, the higher
the likelihood of success. An
internal transition may not
be in your firm's cultural
DNA. If you choose to pursue a sale, you should start
planning at least two years
before you go to market.
2. It takes a village, so build
one. Embarking on a firm
sale is a major undertaking. Establishing a team
2015 REPORTED M&A ACTIVITY
States by Total Activity:
Firm Sales by State through December 1, 2015
Total US Sellers
MT
ND
91
US Sellers to Int'l Firms 16
Int'l Sellers to US Firms 10
VT 2
MN
1
ID
12
SD
2
NV
UT
1
4
NE
IA
AZ
MI
1
1
KS
MO
12
2
IL
IN
PA
OH
WV
KY
4
7
TN
OK
2
AR
NM
23
1
TX
AK
MS
2
6
AL
GA
SC
4
LA
10
FL
© Morrissey Goodale LLC 2015
All Rights Reserved
HI
ENGINEERING INC.
JANUARY / FEBRUARY 2016
NH
MA 7
CT RI
2
NJ 3
MD
DE 1
DE
DC
MD
6
1 DC 3
VA
6
2
2
3
NY
8
6
CO
CA
6
WI
WY
1
ME
2
3
OR
44
213
Total Int'l Sellers
1
3
18
US vs Int'l Sellers:
21 or more Transactions
16 to 20 Transactions
11 to 15 Transactions
6 to 10 Transactions
1 to 5 Transactions
No Transactions
5
WA
of trusted advisers can help
you through the process.
This team often includes key
internal staff, legal counsel,
M&A advisers, tax advisers
and other consultants.
3. Create a dashboard of vital
gauges. Keeping a keen and
consistent eye on all the
important industry metrics,
such as multiplier, utilization and revenue factor, will
not only help you keep your
finger on the pulse of your
NC
Table of Contents for the Digital Edition of Engineering Inc. - January/February 2016
Engineering Inc. - January/february 2016
Table of Contents
From ACEC to You
Market Watch
Legislative Action
Turning Back the Tides
2016 Legislative Outlook
Racing to Help
Going Global
Smooth Sailing
2016 Annual Convention Preview
Business Insights
Mergers and Acquisitions
Members in the News
Guest Column
Engineering Inc. - January/February 2016
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