Engineering Firms

by a searcher from University of Tennessee - Knoxville

7 months ago

Has anyone purchased engineering firms and if so how have they been for you?  Any tips or warnings?

1 like
58 views
5 comments

searcher from Carnegie Mellon University - Tepper School of Business

Licensing is something to take seriously, and also need to diligence key man risk around the sales role of the founder.

7 months ago | like reply | 0 likes

searcher from Columbia University

They can be solid businesses, but licensing is the biggest issue. Every State has their own set of requirements for different engineering trades. For some trades, it's required that the principal owner hold the license, while for some others, any employee can hold the license. In some unique cases, you can sub-contract the license requirement. But net-net, not planning to get licensed yourself will generally introduce risk - e.g., key man risk, growth risk, etc.

7 months ago | like reply | 0 likes

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