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O P I N I O N
Crucial compatibility
An acquired firm can double your size, elevate your design reputation, and give you a foothold in a new market – if the cultures fit.
Editor’s note: Design Organization was acquired by Shive-Hattery in 2012. The firm’s rebranding under the Shive-Hattery umbrella was completed in 2016. A s a 26-person architecture and interior design firm, established in 1971 with two locations in Chicago and Indiana, Design Organization was widely held with five major, and three minor, shareholders. The firm’s finances were in excellent condition. With a steady business and staff growth philosophy, our ongoing ownership/ leadership transition plan was in effect. We had a regional healthcare, higher education, and workplace practice with a very high percentage of repeat clients. It seemed that all was perfect. Not quite.
Spero Valavanis GUEST SPEAKER
At our 2011 strategic planning retreat, we were faced with a rapidly increasing competitive marketplace. Our slow organic growth was an issue for internal staff growth and opportunity, as well as a competitive disadvantage in the marketplace. We were fully engaged in all northwest Indiana markets, but under the radar in Chicagoland. As a small firm with limited resources, we felt a merger or acquisition was an option we needed to consider for sustainable growth. Our M&A consultant walked us through the
process. He spent time working with us on our priorities, strategy, and goals while understanding our organization and culture. He developed our valuation and financial metrics so we would understand how we compared to peers and our value in the marketplace – an important reality check. We resolved that the most important criteria would be cultural compatibility. This is when the courting process began. We reviewed a list of firms from our consultant,
See SPERO VALAVANIS, page 12
THE ZWEIG LETTER April 9, 2018, ISSUE 1243
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