TZL 1557 (web)

TRANSACTIONS INTRODUCING SANBELL (FORMERLY SANDERSON BELLECCI) Sanderson Bellecci, Inc., which formed in 2023 by combining four firms, Sanderson Stewart, Bellecci and Associates, Summit Engineering, and Coleman Engineering, has completed its merger and will now officially be known as Sanbell. Sanbell has offices in Billings, Bozeman, and Helena, Montana; Fort Collins, Colorado; Concord, Pleasanton, and Roseville, California; Elko and Reno, Nevada. “This strategic move to unite under a bold, new brand marks a significant milestone in our company’s evolution. It underscores that we are truly combined in our commitment to innovation, growth, and delivering world-class quality and service to our clients,” says Michael Sanderson, CEO of Sanbell. “This new visual identity was designed to better represent Sanbell’s unified and exciting future, while honoring its strong foundation of decades worth of enduring, intelligent infrastructure designed to make our communities better. Our icon represents elements from our land surveying heritage, the mountain peaks of our western landscapes, and the movement forward to our shared future. The fulcrum within the wordmark represents a north arrow element which guides us with a sense of stability and balance.” Sanbell is a dynamic and growing engineering, community planning and design firm comprised of more than 200 professionals in locations across the West. Sanbell was formed in 2023, from companies that started in 1969 in a

garage in Billings Montana, in a one-room office over TR’s Bar & Grill on Salvio Street in Concord, California in 1983, in a kitchen in Reno, Nevada in 1978, and a small office in Roseville, California in 2010. Sanbell is committed to creating responsible, enduring communities and is devoted to our shared legacy of integrity and honest hard work, treating others well, and a spirit of entrepreneurship and service. Sanbell provides comprehensive land development and public infrastructure design services from offices across the West. From placemaking and land planning to geotechnical, transportation and infrastructure engineering, to surveying, mapping, communications, and visualizations, Sanbell help its clients responsibly take projects from vision to reality. BERNARDON, LLC TO BEGIN OPERATING UNDER THE CORE STATES GROUP NAME After three years of a successful and productive partnership, Core States Group and Bernardon, LLC announced that Bernardon will begin operating under the Core States Group name. Core States Group is an integrated, industry-leading AEC firm that partners with some of the world’s most recognized brands. This new chapter will strengthen Core States Group’s capabilities and open more opportunities to impact the industry nationwide. Established in 1973, Bernardon is recognized as one of the top 100 design firms in the Mid-Atlantic region and among the top 300 architecture firms in the United States. Their impactful designs have included numerous

housing, civic, and cultural projects such as the Rivermark Northern Liberties in Philadelphia; the Justice Center and Transportation Center in West Chester, Pennsylvania; The Commons at Ursinus College in Collegeville, Pennsylvania; the Coatesville Train Station in Coatesville, Pennsylvania; and the Capitol City 2030 Masterplan in Dover, Deleware. “Our name is changing, but Bernardon’s commitment to innovative design remains. This full integration with Core States Group will reinforce our strong partnership and enable us to provide an even more robust portfolio of services to our clients,” said Michael S. McCloskey, AIA, LEED AP, Vice President at Bernardon who will actively continue in his role with Core States Group. According to D. David Dugan, President and CEO at Core States Group, “As Core States Group and Bernardon continue to combine our strengths and resources under the Core States Group brand, we are aligned in building a long-term strategy of developing market expertise, providing a collection of integrated services, and bringing a programmatic approach to our projects regionally and across the nation.” This announcement comes on the heels of Core States Group’s recent acquisition of Barghausen Consulting Engineers, Inc. As Core States Group celebrates its 25th anniversary this year, these developments reinforce the company’s commitment to leading the industry and creating a world where all environments improve everyday life.

Keep doing these deals every year and you can imagine how the firm will be valued. It transformed from a steady-state, plodding, consistent performer into a high-growth company. Hence, one plus one equals three, or at least something greater than two. And this doesn’t even consider the client and personnel sharing that will hopefully occur, plus the redundant overhead between the two companies and resulting overhead reduction that should lead to better profitability. Does this make sense now? This is the math people in the know use to create a lot of value in their businesses. THAT is the difference in small business ownership versus entrepreneurship. Let me know your thoughts at mzweig@zweiggroup.com. Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 5

Let me explain that. The $20 million company that was growing by 10 percent a year consistently would have its normal 10 percent growth that it achieved throughout the year, plus another 20 percent from the acquired company. So it would have gone from roughly $18.18 million to $24 million in a single year. Now the company had a $5.818 million increase in revenue for the year, or 32.3 percent growth rate. When the new combined firm is valued, it will suddenly not be a company with just a 10 percent growth rate. It will be a company with a 30 percent plus growth rate. That will impact all predictions of EBIT growth going forward, even if it is not assumed to be the future growth rate going forward it will achieve the greatest weight in any appraisal because it is the most recent performance. Now the combined firm could end up with a valuation of 1.5 times revenue or some other number.

THE ZWEIG LETTER OCTOBER 14, 2024, ISSUE 1557

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