|This post first appeared as an article in The Zweig Letter, Issue 1223
Besides the fact that an external sale will typically provide the greatest financial return for A/E owners who want to transition out of their firms, a solid majority of principals still prefer internal ownership transition.
I’ve worked in this industry for 37 years now and have seen the good, the bad, and the ugly of ownership transition. While I love talking about what can go wrong, I figured I’d take a look at what does work. -Mark C. Zweig, Founder & Chairman
My experience is that most of the time that preference is born out of a sense of duty and responsibility. They want to keep the firm intact, keeping some semblance of its current form, going forward. An external sale would be a threat to that. Perhaps because they themselves were able to buy the firm from its founders is yet another reason. No matter – internal transition is the only option considered by some companies in this business. I’ve worked in this industry for 37 years now and have seen the good, the bad, and the ugly of ownership transition. While I love talking about what can go wrong, I figured I’d take a look at what does work
Mark Zweig is Zweig Group’s chairman and founder. Contact him at firstname.lastname@example.org.
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Zweig Group, three times on the Inc. 500/5000 list, is the industry leader and premiere authority in AEC firm management and marketing, the go-to source for data and research, and the leading provider of customized learning and training. Zweig Group exists to help AEC firms succeed in a complicated and challenging marketplace through services that include: Mergers & Acquisitions, Strategic Planning, Valuation, Executive Search, Board of Director Services, Ownership Transition, Marketing & Branding, and Business Development Training. The firm has offices in Dallas and Fayetteville, Arkansas.