TZL 1601 (web)

September 15, 2025, Issue 1601 WWW.ZWEIGGROUP.COM

TRENDLINES

Mid-level talent crunch

0% 10% 20% 30% 40% 50% 60%

These three common leadership personas quietly sabotage strategy execution. Spotting strategy saboteurs

Zweig Group’s 2025 Recruitment & Retention Report highlights that 83% of firms identify mid-level professionals with three to 10 years of experience as their greatest staffing need. This underscores the industry-wide challenge of recruiting and retaining mid-career talent, particularly those in the seven to 10 year range, which 55% of firms cite as most critical. Participate in a survey and save on a Zweig Group research publication.

W hen I walk into a strategic growth planning session with an AEC firm, I’m not just thinking about goals and KPIs; I’m thinking about people. Because behind every stalled initiative, delayed decision, or abandoned priority is often a leadership dynamic that no spreadsheet can capture. Over the years, I’ve noticed three familiar personas that surface time and again. These aren’t “bad actors”; in fact, they’re trusted leaders who care deeply but whose default behaviors unintentionally slow down progress. Recognizing these patterns and coaching through them has been one of the most transformational parts of my work at Zweig Group. In my previous article on advanced strategy execution, I explored how employee experience, in addition to cementing essential structural and tactical elements, plays a crucial role in maximizing strategic outcomes. However, even the most engaged teams can face roadblocks when common leadership behaviors go unexamined. This article is for the growth-minded leaders who want to bring more self-awareness, empathy, and strategic momentum into their teams. If it sparks a thought, a question, or a challenge you’re facing, I’d be honored to explore it with you. Here are three of the most common personas that can quietly slow or even sabotage strategy execution, along with coaching strategies that I’ve found helpful in turning resistance into momentum. 1. The Firefighter (crisis-driven, reactive leader). You know this person. Maybe you’ve even been this person. The Firefighter thrives in crisis; they are fast, dependable, and heroic under pressure. When something is on fire, they are already grabbing the hose. Their value in urgent moments is undeniable. But when crisis becomes their comfort zone, strategy suffers. Firefighters prioritize immediate problems over long-term initiatives. They unintentionally create a culture of constant reactivity, where every issue feels urgent and there is no breathing room for proactive planning. Impact: Strategic initiatives get buried under short-term emergencies. Teams burn out chasing shifting priorities.

Ying Liu, MBA, LEED AP BD+C

FIRM INDEX Bowman ............................................................ 3

Corgan ................................................................6

Dyer Brown ......................................................6

EEA Consulting Engineers ...................8

MORE ARTICLES n GARY BOWMAN: Reflecting on 30 years Page 3 n MARK ZWEIG: Crucial strategies to adopt Page 5 n MORGAN STINSON: Let ‘er rip Page 7 n NAM DOUGLASS: The overlooked risk Page 9

See YING LIU, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

YING LIU, from page 1

How to coach them forward: Rather than constantly rushing to extinguish fires, invite Firefighters to help design the fireproofing by leading pilot programs, scenario planning, or leading proactive risk-mitigation efforts. They need to see that prevention is just as powerful as intervention, and that the best leaders fight fewer fires because they built stronger systems. 2. The Historian (change-resistant, tradition-bound leader). Historians possess a rare and valuable asset: context. They know the firm’s past strategies, client relationships, and internal dynamics inside out. They are grounded, loyal, and steady but often hesitant when strategic shifts suggest letting go of what’s familiar. New ideas tend to get filtered through what has or hasn’t worked before. Their instinct is to protect, but that instinct can slow needed reinvention. Impact: Strategic shifts meet passive resistance. New ideas are dismissed before being tested. How to coach them forward: Reposition them as partners in evolution. I often ask them to draw connections between legacy practices and future growth. When they realize their voice matters because of change, not in spite of it, they often lead with renewed purpose and become your most thoughtful advocates. 3. The Lone Wolf (independent, unaligned high-performer). The Lone Wolf is a high- performer. They get results, often ahead of schedule and above expectations. But they do it on their own terms, sometimes outside the strategic fold. They may see strategic planning as bureaucracy, or simply not their concern. While independence can be a strength, Lone Wolves can fragment strategy. They pursue their own goals, which may or may not align with firm-wide direction. This creates silos, dilutes focus, and weakens the collective effort. Impact:

Strategy execution becomes inconsistent. Collaboration feels optional, not essential.

How to coach them forward: Make alignment feel empowering, not restrictive. I’ve seen success by inviting Lone Wolves to lead cross-functional initiatives or innovation labs where their independence fuels progress but within a shared purpose. Publicly linking individual wins to collective goals also reinforces the value of integration. Of course, these are not the only behaviors that can derail strategy execution. I’ve also seen leaders who avoid difficult truths by staying overly positive. Others who resist change because they’ve seen too many failed attempts. Some who stay on the sidelines but still steer outcomes. And those who say yes to everything without ever truly committing. Then there are those who delay decisions, waiting for the plan to be perfect. The list goes on. If you’re seeing any of these patterns in your firm and want to explore how to shift from misalignment to momentum, let’s talk. I’d love to help. Zweig Group has seen firsthand what happens when leadership teams choose growth over comfort. When Firefighters embrace planning, Historians reframe change, and Lone Wolves reconnect to purpose, the impact is transformative. Strategy comes alive. Execution accelerates. The firm moves forward together. In the end, strategic growth planning isn’t just a roadmap but a reflection of how a firm thinks, acts, and leads. And while plans can be written, and execution can be driven, only culture and leadership alignment can turn strategy into something enduring. Ying Liu, LEED AP BD+C is senior director of Growth consulting at Zweig Group. Contact her at yliu@zweiggroup.com.

PO Box 1528 Fayetteville, AR 72702

Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Tel: 800.466.6275 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news LinkedIn: linkedin.com/company/22522 Instagram: instagram.com/zweiggroup Twitter: twitter.com/ZweigGroup Facebook: facebook.com/p/Zweig- Group-100064113750086 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). © Copyright 2025, Zweig Group. All rights reserved.

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

OPINION

Gary Bowman marked his firm’s 30th anniversary by ringing the Nasdaq opening bell.

Reflecting on 30 years

Building a firm that attracts people, not just transactions, requires balancing scale, preserving culture, and investing in long-term success.

W hen I founded Bowman in 1995, I couldn’t have predicted what the next three decades would look like, let alone that we’d be here today, celebrating our 30th anniversary with a team of more than 2,000 people across the country. Like so many in this industry, our path has been shaped by challenges, adaptation, and a drive to build a company that endures – not just for our clients, but for our people.

Gary Bowman

As I reflect on our journey, one thing becomes clear: resiliency isn’t something you develop on the fly when times get tough; it’s something you have to build into your DNA from the start. That mindset – what I’d call resilient by design – is what I believe makes a firm attractive, not just to clients, but to potential merger partners and seasoned executives looking for their next chapter. BALANCING SCALE AND IDENTITY. The AEC industry is currently undergoing a shift. Economic volatility and demographic transitions are pushing firms to move beyond traditional delivery models. For many companies, scale is becoming a necessity – not just for efficiency, but for the flexibility to evolve. At the same time, cultural cohesion and

entrepreneurial identity have never been more important. Clients and employees alike are seeking relationships grounded in trust and shared purpose. There’s a real tension here: how do you grow fast enough to stay competitive without diluting what made you successful in the first place? That’s a question we’ve learned to address, but it’s one that many leaders in the industry are now facing head-on. CREATING OPTIONALITY. At Bowman, we’ve pursued a strategy of intentional expansion by growing through a combination of organic opportunity and acquisition. What we’ve been building is optionality

See GARY BOWMAN, page 4

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

ELEVATE THE INDUSTRY®

future partners. We’re not trying to be all things to all people. But we are building something that ambitious people want to be part of. That applies whether you’re a rising engineer, a founder looking for a landing place for your firm, or a senior executive ready for a change. THE NEXT 30 YEARS. We’ve spent the last 30 years building a half a billion-dollar company by staying true to our purpose, embracing change, and investing in people. That foundation is what makes the road ahead so exciting. The future of the AEC industry is uncertain, but with it comes constant opportunity. For those with a clear sense of purpose and a willingness to evolve, this is a generational moment to reimagine what our firms can become. We are betting on a future where flexibility, integration, and culture are competitive advantages. Where personal success and company success go hand in hand – and where the best partnerships are grounded in shared ambition and mutual respect. As we mark our 30th year, I’m more confident than ever in where we’re headed. Not because we have all the answers, but because we’ve built a foundation strong enough to rise to any challenge. To anyone out there thinking about what’s next for your firm or your career: consider the kind of foundation you want to stand on. And more importantly, who you want to build it with. Gary Bowman is founder and CEO of Bowman. Connect with him on LinkedIn.

GARY BOWMAN, from page 3

– ways to better serve our clients, create more meaningful career paths for our people, and position the firm to withstand whatever the market throws our way. We’ve done this without losing our ambition or identity, which didn’t happen by accident. It takes real discipline to grow in a way that enhances your culture rather than dilutes it. And it takes humility to integrate firms in a way that preserves what made them successful. This is particularly important for founders and executives considering a merger or acquisition. The fear of being swallowed by a larger firm is real and often justified. But there’s a difference between consolidation and collaboration. The right partnership should feel like an accelerant, not an endpoint. WHY CULTURE IS THE REAL ASSET. We talk a lot in this business about technical capabilities, backlog, and balance sheets. Those matter. But I’d argue that a company’s most valuable asset – especially during times of transition – is its culture. At Bowman, we’ve created a place where great people want to stay, grow, and contribute. Our teams lead by example, collaborate across disciplines and push the boundaries in everything they do. That kind of culture doesn’t show up on an org chart or a spreadsheet, but it’s what drives long-term success. It’s also what makes us attractive to talent, to clients, and to

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

FROM THE FOUNDER

Crucial strategies to adopt

W hat most people call “strategies,” could also be called “philosophies” or “approaches” to how a business deals with a recurring problem, capitalizes on a specific opportunity, or differentiates itself from other firms in the same business. Implement these specific strategies to set the stage for your firm’s long-term growth and success.

If I was running an AEC firm right now, there are definitely a few specific strategies that I would be implementing to set the stage for the firm’s long-term growth and success. Here are a few of them: 1. Overspend on marketing so that you drive demand beyond your ability to supply it. Most people in our business don’t really understand this idea. They are preoccupied with what other firms they compete with spend on marketing, along with having a philosophy of spending as little as possible. They don’t realize that their marketing spend and activities drive sales. My experience over the last 45 years is the more you do marketing-wise, the easier it is to sell work, and the more likely you are to not cut prices to get work. That only happens when you have way more opportunities than you can handle. But the only way you will get there is by outspending/ outdoing your competitors on marketing.

2. Look for small firms to buy where the owner is a baby boomer and has no internal leadership or ownership transition plans. These kinds of acquisitions can get you into new markets, services, and geographies at a low cost. The goal is to give the owner a graceful exit and some liquidity for their years of toil. What you want are their people and their clients. The sellers who meet this description typically don’t have a lot of options and are amenable to financing the sale if they have confidence the buyer is a good operator who will pay them out over time. Buying these kinds of firms is one of my favorite growth strategies. 3. Sell small amounts of company stock to key people and finance 100 percent of it through payroll deduction. In general, I think firms in our business make way too big of a deal about who they will sell stock to. I think the reason

Mark Zweig

See MARK ZWEIG, page 6

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

ELEVATE THE INDUSTRY®

TRANSACTIONS GLOBAL ARCHITECTURE & DESIGN FIRM, CORGAN ACQUIRES DYER BROWN & ASSOCIATES Global architecture and design firm Corgan has acquired Boston-based Dyer Brown in a move grounded in shared values and a commitment to design excellence – strengthening their collective impact. This addition reinforces Corgan’s presence in the Eastern United States – adding to its established New York and Washington D.C. offices while providing Dyer Brown’s clients and team access to broader expertise and national reach. Corgan, ranked as the fourth largest architecture and design firm in the U.S., has a large interiors and workplace practice serving global clients across financial services, consulting, technology and consumer brands. Dyer Brown, a 56-year-old firm, has a diverse interiors portfolio including hospitality, retail, building repositioning and healthcare with deep experience in workplace – all of which aligns with Corgan’s expertise. “This partnership was driven by more than just strategy – it’s about cultural and creative alignment,” said Scott Ruch,

CEO of Corgan. “Both firms share a belief in the power of design, a commitment to client relationships, and a people-first culture. We’re excited about what we’ll accomplish together.” Corgan, an 87-year-old firm, has experienced significant organic growth and operates in 19 offices across the U.S., U.K., Dublin and Singapore with more than 1,200 employees. Dyer Brown’s portfolio of work and nearly 30 employees, including the firm’s principals, as well as current office, will now operate as part of Corgan’s global practice. “It is an exciting time to join Corgan,” said Brent Zeigler, Dyer Brown’s President and Principal. “From the start, it was clear that this was more than an acquisition – it was a values match. Corgan’s global platform will create new opportunities for our team and our clients, and we’re confident this move allows us to grow while continuing to do the work we love.” Corgan services a variety of sectors and ranks as the No. 1 data center and No. 2 aviation architecture firm as well as an Interior Design Giant and American

Society of Interior Designers Firm of the Year. Corgan and Dyer Brown share a legacy of design excellence and trusted client relationships, each with a strong portfolio and a high percentage of repeat client work – a testament to the quality and consistency they deliver both in the US and internationally. “Similar to Corgan, Dyer Brown has a strong workplace interiors portfolio and by joining forces, we are amplifying our workplace practice – bringing together deep expertise in strategy, design, and delivery to create environments that elevate employee experience and reflect the evolving role of workplaces for organizations today,” said Lindsay Wilson, president, principal and Interiors Sector leader for Corgan. “We are thrilled to collaborate with a team that shares our passion for purposeful design and innovation, and we look forward to what we’ll build together – spaces that inspire people and drive organizational impact.” Corgan is an employee-owned architecture and design firm with 20 locations and more than 1,200 team members globally.

6. Implement an ongoing client satisfaction monitoring and reporting program through a third-party provider. I recently had one of these interviews with someone who was outside the service provider and being paid to conduct them. When she asked if I had any advice for the business owners I suggested they keep doing these interviews every month and provide the results to all employees in the business. That way it’s not a once a year, or once every five years deal, and the frequency of feedback may encourage changing more rapidly based on the feedback they are getting. This is a great strategy to make improving service quality real. 7. Provide company cellphones to all employees at no charge, but insist they try to respond to after-hours calls, texts, and emails. Have all timekeeping and expense reporting through an app on everyone’s phone. We all know responsiveness is one of the most important aspects of client service, so do what it takes to help make that real. Plus it is also a great benefit for your people and not that costly to implement. Another great strategy you could use. There are many more of these strategies you could employ if you wanted to. But regardless, whatever strategies you are using, I would recommend that you write them down, get concurrence amongst all management, and share them with your people. Don’t assume everyone in your firm actually knows what your strategies are. Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 5

is because they often think management goes along with ownership, that all owners have to be on the board of directors, and/or that owners are unaccountable to anyone. None of this has to be the case. It’s all self- imposed. Selling small bits of ownership to key people gives them a chance to build wealth outside of their homes or 401(k) plans. It ties them to the company more than not being an owner. And it rewards them if the company is successful. All good things. It also improves the firm’s balance sheet. So I would make this part of my strategy. 4. Implement open-book management for all employees. I will be talking about the benefits of OBM until I keel over because it builds trust with management and any firm can do it. It also teaches your people how the business makes money which helps train the next generation of managers. Always a strategy I would implement. 5. Pay a certain percentage of cash basis profits out to all employees on a monthly basis. Make everyone feel like an owner. And don’t wait to do this once a year. Get people in the firm used to the idea that if the firm makes money, so do they. And also get them believing that every month could be a good month if the firm generates sufficent revenue to justify sending out the bills that they can then help collect on. Cash basis is crucial here, as is the frequency of payout. Annually is too long to wait.

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

OPINION

Let ‘er rip

Lessons from The Bear show AEC leaders the value of purpose, process, development, and treating every client like a VIP.

I just finished tearing through season four of the FX series The Bear , and in addition to being a fantastic season of television, it provided several lessons on life and work that I find compelling for leaders of AEC firms. If you’re unfamiliar, The Bear follows Carmen “Carmy” Berzatto, a world-class chef who returns home to run his late brother Michael’s gritty Chicago beef sandwich shop. Armed with fine-dining experience and ambitious plans, Carmy sets out to transform the struggling family restaurant into something exceptional, using the same scrappy team that’s been there all along. Lots of yelling ensues.

Morgan Stinson

The show is beautifully shot (if you like Instagram pictures of people’s food, buckle your seatbelt), superbly acted, and very well written; the tension pours through the screen. But among the chaos, passion, triumphs, and battles (seriously, so much yelling), there’s a lot to learn from how this team of disparate individuals unite to achieve something great. I’ve grouped these musings as answers to three crucial questions (and I’ll try to keep the spoilers to a minimum): 1. Why do we exist? You’re likely familiar with Simon Sinek’s book Start with Why or the companion Ted Talk, but, “Why do we exist?” is a fundamental question for any business to

answer. This is especially crucial during times of change. Alignment on “why” is of paramount importance; misalignment causes chaos and confusion, common occurrences the audience sees on The Bear . Carmy’s “why” is an obsession with perfection and recognition via obtaining a Michelin Star. The passion to be great can be a worthwhile endeavor and certainly all businesses want to be great at what they do. But striving for excellence at the exclusion of other goals and considerations can be destructive and distracting to the overall purpose. Here are a few lessons from the show on “why” and “how” we do what we do:

See MORGAN STINSON, page 8

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

ELEVATE THE INDUSTRY®

as one of the best chefs on the planet and the ideas and suggestions provided by his talented team. The setting has an obvious hierarchy with Carmy on top, and it would be easy to force everyone to defer to him. But he knows his team is excellent, and if he wants to get the best out of them they must be given freedom of creative expression. Positive ideas are blessed with the encouraging “Let ‘er rip!” catch phrase from the departed Michael. In season four, when Chef Sydney Adamu has Carmy try out a new scallop dish he calls it “better than perfect” and immediately puts it on the menu for the night. The look of pride on Sydney’s face in that moment is powerful. By praising innovative ideas from our team, we express gratitude and encourage more positive creativity. 3. Who are we? Many businesses use the word “family” to describe their culture, but in the rush to associate the firm with the sense of acceptance and belonging that families provide, we risk ignoring that for some people families can be a source of struggle and trauma. The family operators of The Bear present both sides of this coin (I mentioned the yelling, right?). Taking the good with the bad, The Bear shows us that how we relate to each other matters: We bring our whole selves to work. Both Marcus and Sydney deal with scary situations involving the health of their family members, and their team at the restaurant has their back. It’s important that when life circumstances intrude, we care for each other so the focus can be where it needs to be. When my mother passed away in 2021, I had to step fully away from work for two weeks with zero notice or preparation; my teammates at EEA fully supported me and covered for me with no questions asked, and I’m not the only person who has benefited from that kind of grace. Yes, the work we do is important, but our lives outside of work are what truly matters. Don’t ignore the difficult conversations. Nobody enjoys confrontation or difficult conversations. We want to be well liked by our peers, and discussing sensitive topics exposes us to a risk of hurt feelings and resentment. But for any enterprise to succeed we must be willing to get vulnerable and discuss the issues holding us back. In one of the final scenes of the current season, Carmy and Richie finally discuss an issue that’s been simmering below the surface for the entire run of the series. Putting off the hard conversation just creates more (and more difficult) conversations later. Great art can inspire us in a myriad of ways, and I found myself actually taking notes while watching this latest season of The Bear (yes, my wife thinks I’m nuts). The show demonstrates the numerous ways we fight each other, love each other, push each other, and make each other better. The characters are richly portrayed, and the pursuit of excellence is compelling. Not a bad way to feel about our work. Morgan Stinson is chief operating officer at EEA Consulting Engineers. Contact him at morganstinson@eeace.com.

MORGAN STINSON, from page 7

Too much change is destructive. In his all consuming quest for greatness, Carmy insists on changing the menu every night. This imposes inefficiency throughout the restaurant, negatively affecting purchasing, food prep, sommelier Gary’s wine pairings, and the wait staff. This chaos also keeps the restaurant from being profitable; the arc of season four centers around a literal clock, counting down the hours until the investor pulls their funding. Without profit, the passion cannot be realized. Change is necessary in business and life, but we must tackle it at a pace our team can handle. Process matters. In season four, line chef Tina Marrero struggles to get her dish prep time down to three minutes, a goal that will provide benefits that cascade out to other functions in the kitchen. Part of the problem is the way she deals with the external pressure, but part of it is under her control, as she streamlines her section by portioning out all her ingredients before the restaurant opens each night. Encourage your team to find the little ways existing processes can be tweaked and improved; small efficiency gains multiplied throughout the company can have tremendous benefit. Every guest is the VIP. During a staff huddle, a conversation bubbles up about trying to identify who the restaurant critics are before they arrive for their meal so they can be treated with extra care. An industry veteran pipes up that instead of spending energy on the detective work, it’s best to treat every guest like they’re the very important person (VIP), then you don’t have to worry about whether you missed one or not. This is a great lesson in customer experience; treat every client like they’re a VIP and they’ll keep coming back for more. 2. Who am I? Everyone has a role to play, and everyone has value. That’s one of the beautiful concepts that The Bear continually shows. From the flattened hierarchy, where everyone is called “chef” to the constant encouragement that everyone can improve, the show reinforces the inherent value of the individual by showing: Training and development are critical. In The Bear we see that to turn a rag-tag band of fast-food operators into world-class restaurateurs, a significant amount of upskilling is needed. Rather than replace the existing staff with outsiders, Carmy pours substantial time and money into teaching his staff the skills they need, including sending pastry chef Marcus to Copenhagen to train at well-known bakery Hart Bageri. Similarly, he deploys aspiring maître d’ cousin Richie to work at real life Michelin two-star restaurant Ever to see firsthand how the best of the best operates. As business leaders, developing our team offers a fantastic opportunity to not only improve the work we produce, but also to let our people know we care about their future. Everyone has a voice. One of the ongoing tensions the kitchen must navigate is between Carmy’s genius

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

OPINION

The overlooked risk

T here has been a flurry of merger and acquisition activity in the AEC industry in the last few years. There were 427 transactions announced in 2023, and AEC firms saw a 33 percent increase in M&A deals in Q3 of 2024, year-over-year. There appears to be similar momentum in the early months of this year . Neglecting immigration compliance during mergers or acquisitions can expose firms to costly consequences.

Nam Douglass

Immigration is rarely the first item on the due diligence checklist for AEC firms engaged in merger or acquisition discussions. However, overlooking this aspect of compliance could cost significant resources, and lead to financial and even criminal consequences, particularly in the current environment of heightened employer enforcement. Worksite compliance matters have been featured heavily in the news in recent months. These stories tend to focus on audits, raids and visits from the Department of Homeland Security fraud unit, all of which remain critical components of employer compliance given ongoing enforcement efforts. Shoring up these aspects of your internal business practices is essential. However, the potential loss of key personnel or

unanticipated costs to retain foreign national employees whose status is impacted by organizational restructuring through a merger or acquisition, creates its own significant compliance concerns. Lapses in work authorization or the inability to retain critical employees has the potential to delay project deliverables, add significant expenses, and hinder the continuity of services that can frustrate business development. But with strategic planning, AEC firms can proactively assess and address compliance issues that allow for an informed plan to transition newly acquired foreign national employees, retain critical talent, and comply with regulations. Best immigration practices during the merger and acquisition process include:

See NAM DOUGLASS, page 10

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

ELEVATE THE INDUSTRY®

This allows the most flexibility in the retention of visa- sponsored employees at the lowest cost. Knowing the critical roles such employees hold within the firm may factor into ongoing cost-benefit analysis and could provide additional negotiating leverage. ■ Identifying any high-risk employees. Some foreign nationals are at higher risk of losing status following a merger or acquisition. L-1 intracompany transferee visa holders are particularly vulnerable as their status is tied to a qualifying relationship with a foreign entity. Disruption of this relationship could eliminate their eligibility for this classification. This also holds true for E-1/E-2 sponsored employees whose status is linked to the nationality of their corporate ownership. ■ Transition planning to minimize disruptions. Corpore structure changes can create unanticipated and unwelcome unpredictability for companies and key foreign national employees. Immigration considerations during the due diligence process assist companies with maintaining business continuity, critical talent, and compliance with federal regulations. Post merger assessments often result in greater expenses and uncertainty for both management and employees. Clear communication of business policies by human resources and the transition team helps reduce uneasiness for current employees and identifies areas that require troubleshooting. ■ Regulatory readiness. Increased government worksite visits and targeted enforcement of specific industries, including construction, require companies to be vigilant in their preparation. Immigration enforcement includes multiple agencies with officers from USCIS (United States Citizenship and Immigration Services), ICE (Immigration and Custom Enforcement), and HSI (Homeland Security Investigations) authorized to undertake investigations. Companies should minimally have a designated point of contact for interaction with governmental agencies; understand the makeup of their employees and their immigration status; have their documents organized and accessible; inform staff and employees of their rights during a visit; and ensure their workplace meets OSHA standards, with all necessary notices displayed. Overlooking immigration compliance during mergers or acquisitions can expose firms to costly consequences – including fines, workforce disruptions, and unforeseen legal liabilities. As AEC companies navigate restructurings, acquisitions, or other corporate transitions, engaging experienced immigration counsel is essential to assess risk, maintain workforce integrity, and ensure regulatory alignment. Nam Douglass, Esq., is a N.C. Board Certified Immigration Law Specialist and partner at Garfinkel Immigration Law Firm. Contact her at nam.douglass@garfinkelimmigration.com .

NAM DOUGLASS, from page 10

■ Conducting an immigration audit during due diligence. Corporate restructuring has immigration consequences for foreign national employees on temporary visas (H-1B, L-1, TN). Due diligence should include a complete review of all foreign national employees, particularly visa-sponsored employees, to determine the potential impact of their continued visa eligibility and work authorization. Changes to corporate structure, location, and FEIN number, in addition to more complex considerations of the deal – such as whether it is an asset only sale, all factor into the ability and cost of retaining sponsored employees. Experienced immigration counsel can help acquiring companies perform this pre-close audit. “Overlooking this aspect of compliance could cost significant resources, and lead to financial and even criminal consequences, particularly in the current environment of heightened employer enforcement.” ■ I-9 compliance and E-Verify considerations. Assuming another company’s Form I-9 records can be highly risky. Review of at least a representative sample provides the opportunity to gauge compliance with immigration laws as well as evaluate business practices in relation to employment discrimination laws, particularly given new enforcement plans under the Department of Justice Whistleblower program. This information will also inform future decisions on whether to consider their acquired employee as “new” or “continuing” as they plan their integration strategy. Of note, I-9 audits are among the most common type of immigration worksite enforcement. Led by Homeland Security Investigations, officers will issue a Notice of Intent to Inspect and generally give companies only three business days to respond with the required documentation. Proactive review of existing and newly acquired records is essential as civil fines range from $200 to $2,300 per technical error. According to research analyzed by Equifax, it is estimated that 60 percent to 80 percent of paper I-9s are missing, incomplete or have errors. The purchasing company should also determine whether the entity they are acquiring uses E-Verify and whether they will need to do so moving forward. While not federally mandated, many state laws do require E-Verify enrollment depending on industry, and number of employees. ■ Assessing “Successor-in-Interest” status. Acquisitions which result in the assumption of all liabilities and legal obligations by the purchasing company are deemed a “Successor-in-Interest” by USCIS.

THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10

Made with FlippingBook flipbook maker