How risky is it to buy an architectural firm?

investor profile

May 16, 2022

by an investor from New York University in St. Louis Metropolitan Area, USA

All the firm's assets (the architects) go home at night. If they decide to leave the firm after the acquisition, the buyer will have paid millions for nothing. They can even start their own firm and take clients with them.

What are the best ways to mitigate the risk?

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Reply by a searcher
from University of British Columbia in Vancouver, BC, Canada
Just a note on non-competes, they are usually best enforceable on the owners / those that cash out a significant amount of cash. It would be harder to enforce non-competes / non-solicits on employees as they have the right to work etc.
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Reply by a searcher
from Simon Fraser University in Ontario, Canada
Anonymous, another thing to take into account when evaluating the feasibility of an acquisition of this kind is that in some (most?) jurisdictions you will have to be a registered architect to be able to own an architectural firm.
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