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Ownership of Engineering Firm Transfers Over Time

 
November 02, 2016
 
Client Success

Situation

The largest owner of a successful consulting engineering firm wanted to retire in five years and diversify his retirement savings. His younger co-owners wanted to gradually take on management responsibilities and acquire his ownership interest.

Result

The owners developed and entered into a gradual purchase arrangement. The business redeemed the selling owner’s interest over five years based on a price linked to the company’s earnings. The remaining owners know the business can afford the formula-based buyout price, while the selling owner will benefit from the growth and profitability of the business.

 

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