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