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TRANSACTIONS BOWMAN ACQUIRES MEP AND FIRE PROTECTION ENGINEERING FIRM MOORE CONSULTING ENGINEERS Bowman Consulting Group Ltd., a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment, announced the acquisition of Moore Consulting Engineers, a mechanical, electrical, plumbing, and fire protection engineering firm based in Shamong, New Jersey. Moore provides comprehensive MEP/ FP engineering services to private and public sector clients throughout the United States. Founded in 2003 by current president Jeffrey Moore, PE, LEED AP, the firm provides specialized and generalized expertise in the areas of heating, ventilation, and air systems planning; electrical, lighting, photovoltaic, and low voltage systems design; and fire protection and alarm system engineering. With multiple LEED-accredited professionals on staff, Moore designs projects that meet the highest standards of environmental focus, energy efficiency, and long-term sustainability. “Moore Consulting Engineers adds additional depth to our growing MEP
and fire protection practices,” said Gary Bowman, chairman and CEO of Bowman. “Jeff has built a great business over the past 21 years, and we are proud to be partnering with the entire Moore team as they move to the next chapter in their story. Their focus on LEED standards brings additional expertise to our portfolio of services, and I am confident they will integrate quickly and add value immediately.” “I am happy to share that our next step will be to join Bowman. Several of Bowman’s recent acquisitions demonstrated to us their commitment to building a national MEP, fire protection, and sustainability practice,” said Jeffrey Moore, president of Moore. “Like Bowman, we are growth- oriented and are excited about the opportunity to contribute to their efforts to build a full-service national MEP/FP practice. Having gotten to know Bowman well, I feel confident that this is the right move for all the families that make up the Moore team. Our employees will benefit in many ways from Bowman’s extensive professional development opportunities, and our clients will benefit from the extensive network of people and resources we now have at our disposal.” Financed with a combination of cash,
seller notes, and equity, the acquisition falls within previously discussed target multiples and operating metric ranges. The company anticipates the acquisition will initially operate at an annualized net service billing run rate of approximately $4.0 million and be immediately accretive. Moore Consulting Engineers has been providing mechanical, electrical, plumbing, and fire protection engineering since 2003. The firm has grown over the past 21 years from only serving clients in the Philadelphia and south New Jersey markets to serving clients throughout the United States. Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With more than 2,100 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement, and other technical services to customers operating in a diverse set of regulated end markets.
All of these questions are good questions and how each firm answers them and addresses them will create opportunities and problems for them to deal with in the future. There is no one “stock” answer or best practice. There are too many variables to consider. Every firm is different, and every founder is different. This is certainly one area where qualified consultants or advisors can be helpful. It’s not something you do every day, yet there are people out there who do work on these problems daily who can provide you with some good advice. Your clients need you to do what you do because they can’t do it themselves. So, why would you try to do this stuff by yourself? If you are grappling with some or all of these questions, we are here to help. Drop me a line at mzweig@zweiggroup.com and I will put you in touch with the right people here. It’s important that you don’t wait too long to do something. I cannot tell you how many 70-year-olds we talk to who have no plan to transition and want to get out. Shutting down a business that has ongoing commitments is costly and difficult. And there is no pot of gold at the end of that rainbow! So don’t wait too long! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
MARK ZWEIG, from page 5
If it is sold to the employee, should they be expected to pay for it all at once, or should the company provide some kind of financing so the employee can pay over time? Should those payments come out of regular payroll or should they come from bonus payments? There are pros and cons of each approach. Then there is the issue of roles and additional responsibilities for these new owners. Should they all be charged with bringing in new work to the firm? Do they all have management jobs? Do they all automatically sit on the firm’s board of directors? How will that be dealt with if the firm adds more and more owners because at some point the board can’t be that large? Or should ownership be simply that – an investment in the place one works with potential for profit distributions and appreciation, and a vote for who is on the board of directors, and nothing else? Who should be offered ownership is a big source of debate. Should it only be key people? Should they all be registered professionals? That’s an issue in some states. Should people have to be there a certain length of time? Or should it be anyone who wants to invest their money in the firm regardless of position or tenure?
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THE ZWEIG LETTER JULY 8, 2024, ISSUE 1544
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