Plan for successful ownership transition or expansion of your small or mid-sized design firm.
Think beyond the exit strategy…
Team AVEC supports firm founders embarking on ownership and leadership transition. Be it internal succession, merger, acquisition, or even firm closure, we’ll help you plan for your firm’s future.
How do firms succeed in transitioning ownership and leadership? It requires mutual understanding and aligned goals from all parties, both exiting owners and their successors. Our approach balances the needs of everyone involved to arrive at a transition blueprint that clarifies expectations, demystifies the process, and sets the stage for the ongoing success of your firm. We go far beyond simply setting an “exit strategy.” We work closely with emerging leaders to learn aspects of firm management that might be new to them.
Our scope can be customized to meet your needs, but typically it includes the following phases:
Assessment
Individual interviews with current ownership to understand motivations, timing, and desired outcomes of the ownership transition.
Group educational session with all involved to introduce the ownership transition process and the steps we will follow together.
Individual interviews with potential successors to gauge risk tolerance and aspirations as future firm owners.
A formulaic valuation of your firm. This is based on formulas provided by the Zweig Group Report on architecture firm valuations.
Financial deep dive, including a review of current and recent years' financial performance of your firm. This includes a financial discovery meeting to review financial findings.
Financial Planning
Ownership transition plan including timing, stock transfer roadmap, and cash flow pro forma – and we’ll revise the roadmap and pro forma per review by current owners
Memorandum of Understanding (MOU) to document financial aspects of equity transfer offered to incoming owners.
On-Site Visit + Organizational Design
Meetings with successor(s) to introduce all aspects of the transition deal.
Facilitation of an organizational design charrette with current leaders to discuss firm structure, current and future, defining titles and roles including partner and principal, discuss messaging to staff along with options for rewards and recognition of other valued team members.
Firm governance, now and in the future.
Clear roles and responsibilities for the expanded leadership team.
Revisions to the MOU and spreadsheets as based on review by incoming owners.
Preparation of the MOU to transmit to the current owner's attorney for development of a buy-sell agreement.
AVEC also offers participation in our Foundations program for emerging leaders.