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STEVE MCADAMS, from page 1
Focus on standards and repeatable systems Delegate operational responsibilities Invest in mentoring and developing team (business) leaders
3. Mid-size firm (51–200 FTEs). At this level, managers must be trained in core business functions – budgeting, forecasting, staff development, and backlog management. Principals become responsible not only for delivering work but for generating it. This transition can be challenging for technically oriented professionals. Many firms address this by offering ownership to key individuals who are willing to embrace the business side of the practice. While this may dilute equity in the short-term, it can fuel long-term growth. Sustaining momentum also requires aggressive hiring. A firm may need to onboard 30 or more new employees annually just to support organic growth and replace typical turnover. Without a structured recruitment and onboarding program, growth may stall. At this stage, acquisitions become a viable path to supplement organic expansion. To thrive as a mid-size firm, leaders must be willing to: Teach and delegate business operations Develop future principals with both technical and business skills Formalize recruitment and retention strategies Reinvest in the firm through ownership stake or M&A 4. Large firm (200+ FTEs). Larger firms require robust, scalable systems to manage complexity. A dedicated executive team (C-suite) typically oversees business continuity, financial planning, and human capital strategies. Growth now requires a strategic balance between organic expansion and acquisitions. Structured internal training programs ensure alignment with the firm’s standards and culture, while leadership development becomes formalized to secure future continuity. Mature firms often have dedicated teams for M&A – focused not only on financial performance, but on cultural fit, talent retention, and integration. Leadership takes on a visionary role, constantly exploring new markets, service lines, and geographies. To lead a large firm effectively, leaders must: Build scalable systems and leadership pipelines Align culture across diverse teams and locations Combine organic growth with strategic acquisitions Maintain a long-term vision while managing short-term execution FINAL THOUGHT. Each growth stage presents new challenges – but also new opportunities. Firms that scale successfully do so by evolving their leadership approach, formalizing their operations, and staying grounded in culture. Agility, systems, and clarity are the levers that drive sustainable growth at every phase of the journey. Position your firm for the next stage of growth. Whether you’re looking to expand through acquisition or maximize value in a sale, Zweig Group’s M&A consulting team brings decades of AEC-specific expertise to every transaction. From identifying the right opportunities to structuring, negotiating, and closing deals, we help firms at every stage of growth navigate the complexities of M&A with confidence. Learn more here . Steve McAdams, PE, is a mergers and acquisitions advisor at Zweig Group. Contact him at smcadams@zweiggroup.com.
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THE ZWEIG LETTER OCTOBER 20, 2025, ISSUE 1606
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