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ON THE MOVE KWAME BUILDING GROUP HIRES VAMA GARRIMELLA AS PROJECT ENGINEER Vama Garrimella has joined Kwame Building Group, Inc. as a project engineer. Garrimella’s responsibilities include developing design documents, creating 3D renderings, responding to RFPs and submittals, managing project scopes and reviewing change orders for various KWAME projects, including the St. Louis Major League Soccer Stadium. She previously was an intern at KWAME. Garrimella has a master’s degree in architecture from A. Alfred Taubman College of Architecture and Urban Planning at the University of
Michigan. She has three years of experience working on various architecture and interior design projects. Kwame Building Group, Inc. is one of the nation’s top pure construction management firms, dedicating 100 percent of its resources to project management services. An employee- owned company, KWAME provides estimating, scheduling, project planning, value engineering and other project management services as an independent advocate for owners and developers. KWAME is headquartered in St. Louis with division offices in Atlanta, Dallas, and Seattle.
This webinar was specifically developed to help design and technical professionals in archi- tecture, engineering, planning, and environmental firms become more comfortable managing cli- ents and promoting the firm and its services. Led by two retired and current CEOs with extensive experience from the design desk to the board room, this one-of-a- kind webinar presents business development techniques proven to drive real growth and value in your AEC firm. Elevating Doer- Sellers Webinar 6 PDH/LU
JOHN BRAY, from page 1
generally, a healthy organization overall. So it is never a bad idea to get your firm “transaction ready.” Here are a few things you can be doing right now to make sure you are ready to take advantage of an opportunity when it presents itself: ❚ ❚ Continue growing. In addition to the development opportunities it provides for your staff, growth provides a slew of other benefits for a seller. Culture fit is a critical aspect of any acquisition, and buyers often want to see a like-minded approach to growth in the strategy of the seller. Growth also provides the buyer with the ability to make projections for continuing growth. That growth will also lead to a higher EBITDA (earnings before interest taxes depreciation and amortization) projection, which is a common valuation metric in mergers and acquisitions. ❚ ❚ Focus on profitability. This is easier said than done, and could involve making some difficult decisions depending on your situation. There are many different valuation metrics used during an acquisition, but multiples of EBITDA are considered nearly 100 percent of the time at one point or another. Generally speaking, the more profitable you are, the higher your valuation will be. Not only will this give a buyer confidence that your system works, but operating profitably will give your firm more leverage and bargaining power during negotiations. ❚ ❚ Clean up your finances. Good record keeping is not something you can easily go back and fix once an opportunity presents itself. If it is not done properly on an ongoing basis, it is very difficult to reconstruct missing pieces or incomplete information. This includes having diligent accounting procedures, good balance sheets and P&L statements, and removing your personal expenses from the books. Having clean records also allows the due diligence process to move quicker. ❚ ❚ Keep administrative policies current. Some examples would include human resources, software licensing, labor, and overtime policies. These can be a minefield of potential deal-killers if they are not updated regularly. ❚ ❚ Start to understand what your ideal transaction partner would look like. If you were to sell your company, what type of buyer would you ideally want to sell your firm to? What markets and services would they focus on? How big would they be? What type of culture and values would you want them to have? Understanding what you are looking for will not only prevent you from wasting time on “dead-end” conversations, but give you confidence to proceed when you get introduced to the right suitor as well. ❚ ❚ Build a strong successor and second tier of management. As a firm owner, there is no greater leverage in an acquisition than having an internal transition plan in place. If you are not in a position where you need to sell, it forces the buyer to focus more on the benefits the transaction would have for you and your staff. Not to mention that anyone interested in purchasing your firm would be equally as interested in your staff and their abilities when evaluating your firm. This means selling more stock to associates, junior principals, or other valuable employees. It is also a good idea to update your stockholder agreement at least once per year. JOHN BRAY is an advisor with Zweig Group’s M&A and executive search teams. Contact him at jbray@zweiggroup.com.
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THE ZWEIG LETTER JANUARY 18, 2021, ISSUE 1375
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