Dear Insider,

When it comes to selling an architecture, engineering, or environmental consulting firm, there is one simple truth: the market sets the price.

No matter how sophisticated a valuation model may be, or how confident you are in your firm’s worth, the real picture of value only emerges when multiple qualified buyers are at the table, simultaneously evaluating the same opportunity. That’s what a competitive M&A process achieves.

Why Competition Matters

The right M&A process does two things at once:

Reveals the best valuation. When multiple buyers know they are not the only ones in the room, it forces them to sharpen their pencils. Instead of anchoring low, they bring forward their best offers, knowing they may lose out otherwise. It is a seller’s market currently, with just a few firms being sought after by multiple different buyers.

Finds the right fit. Price matters, but so does legacy, cultural alignment, and the future of your people. A competitive process allows you to see not just “how much” buyers are willing to pay, but why they want your firm and how they intend to integrate it. What is their 5-year plan? Their 10-year plan? That context is just as important as the dollar figure.

Why Buyers Prefer “Proprietary” Deals

It’s no secret that private equity firms and strategic buyers spend heavily on professionals tasked with sourcing so-called proprietary deal flow, situations where they are the only buyer at the table. Sometimes these individuals are in-house M&A professionals, sometimes they are an advisor like the ones at PSMJ.

This isn’t malicious. Buyers simply know that if they can get in front of a seller without competition, they gain leverage. With no pressure to bring their best number, they can often acquire firms at a relative discount.

The Role of an M&A Advisor

An experienced M&A advisor flips this equation. They:

• Confidentially introduce your firm to multiple vetted buyers at the same time.

• Manage parallel conversations so you don’t get pulled into an exhausting, one-by-one process.

• Protect your time and focus, running the process so you can keep running your business.

• Deliver leverage at the negotiating table, ensuring the best terms, not just the best price.

Most importantly, they help you avoid deal fatigue. Negotiations can be grueling, and fatigue leads to concessions. The best advisors know how to keep momentum, maintain competitive tension, and close with both strong valuation and favorable terms intact.

A Safer, Higher-Reward Approach

Selling your firm is one of the most consequential business decisions you will ever make. Approaching it with only one or two buyers in mind leaves money on the table, and risks overlooking the buyer who might be the perfect cultural and strategic fit.

By contrast, a well-managed competitive process brings clarity, balance, and options. It is the only way to truly see what your firm is worth in the eyes of the market, while ensuring the best possible future for your people and your legacy.

Are you ready? PSMJ’s M&A Advisory and Ownership Transition practice has helped thousands of AEC firm owners find, structure, and execute their M&A strategies with lasting results. Whether you’re looking to expand your firm with an acquisition, plan your exit strategy via internal or external sale, our bespoke approach is built around you and your goals. PSMJ’s award winning team of experts is here for you every step of the way.

Learn more about PSMJ’s M&A advisory services here.