CONFIDENTIAL CLEARINGHOUSE

Strogoff Consulting provides confidential introductions between prospective buyers and sellers and guides them through the merger and acquisition process. As a strategic advisor to firms throughout the U.S., Michael Strogoff, FAIA, and Stephen Epstein bring an extensive network of contacts and insiders’ knowledge of the A/E industry.  Firms are introduced to each other only if there is a strong strategic and cultural fit.

Consolidation Trend
Increasing numbers of architecture, engineering and design firms are actively looking at acquiring, merging or selling their firms.  This dramatic consolidation is due to a convergence of factors:
  • To sustain their size, large firms need to expand their client base, either geographically or by entering new market sectors, and realize that the most effective way to do this is by merging with or acquiring other firms.
  • Large institutional and corporate clients are retaining fewer A/E firms to execute their projects while also insisting that these firms establish offices or align with firms in close proximity to the clients' projects.
  • Firms that have the opportunity to expand, but are stifled by a dearth of qualified staff, are acquiring other firms to gain access to their key staff and to enlarge their recruiting territories.
  • As part of differentiating themselves from their competitors, firms of all sizes are relying on mergers and acquisitions to broaden their services and expand their expertise within specific market sectors.
  • Many small- and mid-size firms are finding it difficult to fund investments in technology and harder to compete against larger firms that can demonstrate greater depth.
  • Many baby-boomers who own firms are searching for a viable exit strategy as they look toward retirement.

Opportunities for Buyers
  • Diversify or expand into new regions, services and/or building types
  • Service clients across broader geographic regions
  • Compete more effectively against firms with larger market penetration
  • Position a firm to have a larger impact within the communities it serves
  • Acquire new areas of expertise and knowledge
  • Increase viability for specific projects
  • Leverage current leadership team, infrastructure and intellectual capital
  • Expand leadership team
  • Obtain skilled staff and/or broaden base for attracting new staff
  • Expand design skills and/or production capacity
  • Gain access to technological resources
  • Gain greater economies of scale
  • Facilitate succession planning

Opportunities s for Sellers
  • Diversify into new regions, services and/or building types
  • Become viable for larger and more prestigious projects
  • Provide more comprehensive services to clients
  • Compete more effectively against larger firms
  • Leverage design skills and portfolio outside of home territory
  • Increase staff depth
  • Gain access to marketing, management, design and/or production capabilities
  • Gain access to infrastructure (technology, human resources, etc.)
  • Allow principals to redefine professional focus
  • Expand career opportunities for key staff
  • Increase profitability
  • Facilitate succession planning

For related information, please see: