Does anyone know best practices? My search partner and I are about to go under LOI for an architecture firm and one potential hurdle is post-ownership structure. Is the MSO structure for medical practices applicable? As long we have a licensed architect is that ok?
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It depends on the requirements for both the state the company is in & the state you're forming your acquiring entity in (if different states). You likely won't be able to maintain a PC or PLLC structure, but several states have other options as long as a licensed architect has some % ownership (the amount varies by state).
There also usually needs to be a very clear line between operations & architectural work within the new co.
Since many firms are somewhat owner dependent, keeping the seller(s) in a minority position for a###-###-#### month transition period (time limit may apply depending on funding source so double check), then transitioning to a partner with a license or key employee(s) is usually the best bet.
All of this requires really good attorneys to ensure you're fully compliant with all relevant laws.