Buying an architecture firm as a non-architect

by a searcher from University of San Francisco - School of Management

5 months ago

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?

0 likes
33 views
1 comment

lender from Eastern Illinois University

Michael, great question. There is not an MSO structure really outside of a medical. The key is going to be what the state or states the business operates in requires for licensing. Since it can vary by state, you will need to figure that out. If the owner needs to carry the license or ownership does, then you need to have someone in the deal that can carry that license post closing. You can accomplish that by having a key employee that can carry that license or by doing a partial business acquisition and keeping the seller on for a minority interest and have them maintain that license. You also want to look at what you will need to do to maintain that license going forward. Most lenders are going to want you to have a plan to keep that license in place.

If you would like to discuss options in more detail, you can reach me here or directly at --@----.com Good luck.

5 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.