Architectural Services Business

The founder of an architectural firm was frustrated with the lack of interest of the other architects in the firm with the operation and management of the firm. He was also concerned about not having an exit strategy that would allow him to receive value from the sale of the firm. He believed that the firm would not be purchased by outside parties but only would be purchased by senior architects of the firm.

The succession planning process began with meetings with the senior architects of the firm. After ten planning sessions resulting in the draft of a succession plan, architects decided to go forward with arrangements to purchase the firm. A buy-sell agreement was drafted and executed establishing the value of the firm among them and providing for contingency purchase of ownership shares.

Within the next three years the senior architects initiated the purchase and took over operation of the firm. The founder is receiving a large payment each month and is free to pursue other business interests.