Privately owned architecture firms in today’s competitive environment face numerous hurdles when considering ownership transition and leadership succession. AIA Members need to begin necessary planning well in advance to ensure the best results.
Advice to Potential New Principals – Six suggestions to consider when you’re tapped to become a principal in your firm.
Architecture Firm Ownership Transitions—a short article which addresses the decision of whether to sell, merge, or close a firm—as well as the preparation and planning before that decision is made.
Designing a Successful Ownership Transition: Ten Lessons Learned as a Professional Services Firm Transitions DesignIntelligence article by Mark VanderKlipp & Jeffry Corbin (2008)
Extended reporting periods—ERPs—help ease firm transitions. Professionals leave firms, firms dissolve or are acquired or merge, firm owners retire. These changes require special protection and any design professional anticipating a change in practice must carefully examine the options available with the firm’s professional liability insurance broker or agent to find the best ones for you and your firm. Also known as “tail insurance”, there are numerous reasons to purchase an ERP.
Firm Strategic Plan—See how one firm addresses ownership transition within the context of their firm’s strategic plan.
Insurance Concerns in Mergers and Acquisitions – a brief article addressing key issues for anyone considering their firm merging, acquiring or being acquired.
Key Person Life Insurance – protects the firm in the event of death of one of the partners or other key income generator.
Mergers, Acquisitions and Dissolutions—If there is to be a change in firm ownership or operation, one must consider how it will impact professional liability exposure and insurance coverage in advance to ensure adequate protection.
Ownership Transition Alternatives & Considerations—Review 10 slides about the universe of considerations and respective benefits to determine your best strategy.
Principal Interest – a short article about five critical issues to consider when you’re tapped to become a firm principal.
Selling, Merging, Or Closing Your Practice? This white paper addresses the financial considerations, firm culture, professional careers, and resulting consequences that must be considered in choosing the most suitable course of action for a practice. Identify the critical processes, factors, and appropriate steps for transitioning firm ownership. Or, read the synopsis here.