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Conference call: Ownership transition Each week, The Zweig Letter features commentary from top-flight leaders of AEC firms. Here is a compilation of their thoughts on maintaining the leadership pipeline.
By The Zweig Letter Staff
N IC ANDREANI, PRESIDENT WITH W&M ENVIRONMENTAL GROUP, LLC One thing we didn’t expect is the significant impact it has on the firm’s culture. Not only does it communicate that there’s a plan in place, but it shows everyone in the firm that there’s opportuni- ty and recognition for hard work and perseverance. AL BARKOULI, CHAIRMAN AND CEO OF DAVID EVANS AND ASSOCI- ATES, INC. Ownership transition is crucial, especially for privately held firms in our industry. A lack of in- ternal ownership and inability to transition owner- ship are key reasons why small and mid-size firms disappear. We had some ownership transition chal- lenges when a few large shareholders retired during the recession in 2007 and 2008, when the markets were declining. In a downturn, buying back shares can be a significant stress on the balance sheet of a privately-held firm. In good times, ownership tran- sition can be a little easier. Either way, firms need to have a funded internal ownership transition
plan. The plan must address how a firm will attract or create the next generation of owners. “A lack of internal ownership and inability to transition ownership are key reasons why small and mid-size firms disappear.” MIKE COOPER, PRESIDENT OF HED, INC. Start now and be- gin to engage the next generation of owners. In- volve them in leadership and develop a reasonable timeline for transition. This should be an ongoing process so that long-term, ownership transition becomes a natural process. Retirements and such should not create undue burden on the organiza- tion. JOHN HILTZ, PRESIDENT OF OHM ADVISORS Several years ago, we identified that our future ownership transition
THE ZWEIG LETTER Aug
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