TZL 1586 (web)

BUSINESS NEWS BOWMAN AWARDED MULTI-YEAR CONTRACT BY CITY OF MONTEBELLO FOR ON-CALL ENGINEERING SERVICES Bowman Consulting Group Ltd., a national engineering services firm, has been awarded a $6 million on-call design and engineering services contract with the City of Montebello, California. The three-year agreement will generate $2 million annually and includes two optional one-year extensions, creating the potential for a five-year partnership worth up to $10 million. Under the contract, Bowman will provide design and engineering services to

support Montebello’s infrastructure and community development initiatives. These services may include municipal and civil engineering, capital improvement project management, construction management, city traffic engineering, engineering plan review, grant administration support and staff augmentation for office and field operations. “This engagement is another example of the synergies we are deriving through the integration of acquired operations,” said Gary Bowman, chairman and CEO of Bowman. “The contract builds upon more

than two decades of collaboration with the City of Montebello and reinforces a long-standing partnership in support of their growing infrastructure needs. By continually aligning our capabilities with the priorities of our customers, we continue to expand our footprint and generate sustainable long-term organic growth across markets and services.” In connection with the award, Bowman was issued several initial task orders including catch basin retrofits, sewer system auditing and management, roadway enhancements and a citywide pavement management program.

Several uneventful years go by but then laws change, shareholders’ roles and responsibilities change, and new shareholders are needed to sustain the firm. The agreement has fallen hopelessly behind the business. The openness of the roundtable setting allowed one attendee to share that a similar situation left their firm vulnerable. The firm found itself between two bad choices: try to enforce an agreement that everyone knew was outdated or try to rewrite their agreement in the middle of a performance issue with a shareholder. The key takeaway here: dust off your shareholder agreement at least every other year, especially as your firm’s ownership and governance grow more complex. A WORTHWHILE INVESTMENT OF TIME. The most valuable insight from the executive roundtable was simple, if you don’t make time to proactively evaluate your ownership structure, you will eventually be forced to react, most likely under pressure. There was broad consensus at the roundtable that ownership problems are much more difficult to solve in the middle of a crisis, when stress and drama can cloud decision-making. By stepping back, reflecting, and sharing with peers, firm leaders can identify risks early and set a stronger course for the future. Special thanks to Zweig Group for creating such a valuable space for AEC leaders to come together and engage in meaningful, strategic dialogue. The Executive Roundtable is more than just an event, it’s a catalyst for honest conversation, shared wisdom, and renewed focus. I’m grateful for the opportunity to be part of it and look forward to seeing how these important discussions continue to shape the future of our industry. Brad Wilson, CMA, MBA, is director of Strategic Growth Advisory at Stambaugh Ness. Connect with him on LinkedIn.

BRAD WILSON, from page 3

the attendees reported that they regretted becoming an owner in their own firms, but few had shared their journey with their next-gen leaders. 2. Private equity is offering a “quick fix” to ownership challenges. Almost every firm leader reported receiving multiple solicitations from PE firms or AEC platform firms backed by private equity. And yes, it sounded like the rumors about how much a private equity firm will pay for an AEC firm are true. The “godfather” of AEC mergers and acquisitions, George Christodoulo, delivered an engaging session about the pros and cons of selling to private equity. He shared real- world examples ranging from remarkable success stories to nightmare scenarios. A key insight many attendees agreed on is that if PE is going to be the right fit, they must bring more than just money. If the high valuations being offered are based on synergistic revenue and profit growth, how that can be accomplished must be part of the offer. If your firm can truly be strengthened by selling to PE, your key people will be more likely to come along. However, if you treat PE as the buyer of last resort and don’t consider the next-gen leaders, things can go badly. 3. Your shareholder agreement should be a living document. Many attendees shared how their firms had outgrown their governance structure, and in some cases had even outgrown certain key shareholders’ capabilities. This situation was exacerbated by the outdated ownership agreements, making it very difficult to make the necessary changes. I have experienced this myself over the years with many clients. If done well, getting a comprehensive buy-sell agreement in place among a small group of shareholders is a daunting task. Lawyer-fatigue is a real symptom and by the time the agreement is signed, everyone wants to put it in the file drawer and forget about it.

THE ZWEIG LETTER MAY 19, 2025, ISSUE 1586

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