CREJ

28 / BUILDING DIALOGUE / March 2020 ELEMENTS Mergers & Transitions Architecture Firms: Selling Out or Selling Up? A re you a buyout veteran yet? If the trend toward consolidation among architecture and engineering firms continues, any of us could face a sale or merger during our careers. I’ve witnessed the ebbs and flows of the architectureprofessionover theyears. This recent trend of mergers and buyouts got me thinking about the multiple perspectives involved. As theprofessionages andmany firmowners arebe- ginning to retire, it’s a trend that is likely here to stay for a while and has the potential to affect all of us, at every level of employment. If you’re a firm leader, opportunities to solidify your legacy, accelerate your trajectory or simply convert your equity are enticing. Whether you’re looking to monetize a lifetime spent building your practice from that one-roomoffice toaproudportfolioof loyal clients or looking to graduate from the regional shortlist and promote your team to international players: marrying up is an attractive strategy. But if you’re a less tenured employee, your new “blended family” status might leave you wondering what’s next. Will my adopted siblings like me? Will I havemy own room? And howarewe dividing chores? We spoke with a mix of local professionals about their mergers and transitions. Here’s a sampling of our Q&A: Q: Were you able to transition internally or did you look to outside investors? Nan Anderson, FAIA, principal, Anderson Hallas Ar- chitects: Anderson Hallas has been purchased from within the organization. Over about a 10-year period, we identified and developed our next generation of leaders. Throughathird-partyvaluation,weestablished the fair market value for the firm and now adjust that annually. An incentivized bonus process, for principals to buy shares of stock in the firm, felt right to us and that’s the processwe’ve employed. AdamHarding, 2020 AIA Colorado president; partner, Roth Sheppard Architects LLP: We completed an inter- nal transition over three years. We purchased percent- ages of ownership each quarter based on net income cash-on-hand bonuses, based on the previous year’s valuation. Carl Hole, AIA, principal, Stantec Architecture Inc.: Denver-based RNL was acquired by Stantec, a national multidisciplinary firm with multiple locations. RNL’s projects have been financially responsible and our Lauren Dundon, AIA Associate, Semple Brown, and Editorial Committee Member, AIA Colorado