Dear Insider,

Today we zero in on an M&A issue that PSMJ has had to step in to fix far too many times. We hope that yours will not be next. According to Harvard Business Review, less than 30% of acquisitions succeed. Yet PSMJ’s success rate in our M&A transactions by the same measure is 94%. What do we know that A/E firm owners and other advisors do not? 

The difference between success and failure rests entirely on what happens after you get an offer. Every M&A transaction in the AEC industry starts with two companies that like each other and want to succeed together. That’s the baseline.

Many owners, and even some M&A professionals, assume that once they’ve created a market, received multiple offers, and selected the best mix between price and fit, the hard part is over (great choice if you decide to do this! Enjoy that massive increase in proceeds and best fit partner selection). But in reality, signing a Letter of Intent (LOI) isn’t the finish line—it’s halftime.

A generalist broker may bow out here, leaving you with a legal team to “paper the deal.” But the best advisors stay at the table—because this is when the most critical decisions get made. Not just about purchase price, but about people.

What Really Shapes Outcomes: The Post-LOI Details

How do you know if your transaction will succeed? Today we go beyond generic advice like “Make sure your cultures are similar.” Here are four critical deal terms you don’t want to miss:

• Employee Benefits and Policies: Will your team keep their PTO accruals? What’s happening to their health insurance? Are retirement matches and ESOP plans comparable? These small-sounding details can mean major disruptions if overlooked.

• Cultural Integration: How will your team be integrated into the acquiring firm? What titles will change? Who’s reporting to whom? A great M&A advisor knows how to ask these questions early—so integration doesn’t become a scramble at the 11th hour.

• Risk Allocation: Will reps and warranties shift undue risk to you and trigger indemnification? Will working capital targets effectively fund operations during the transition? Seasoned advisors spot and address these issues before they can erode value.

• Communication Strategy: Your team, clients, and strategic partners need to hear the right message at the right time. Advisors with deep A/E industry experience—like those at PSMJ—help you build that communication roadmap with credibility and confidence.

This Isn’t Just About You—It’s About Your Legacy

The best M&A outcomes aren’t defined solely by headline valuation. They’re measured in how your people are treated, how your culture is preserved, and how your clients react post-close.

At PSMJ, we’ve walked hundreds of A/E firm owners through this journey from start to finish—from early strategy to final integration. We understand that valuation doesn’t end at EBITDA multiples. It includes reputation, retention, and the continued well-being of the people who helped build your success.

Don’t Just Hire a Broker—Choose an M&A Partner

If you’re ready to sell, you’ve already taken the boldest step. But don’t shortchange the rest of the journey by working with a broker who only plays the first half. The M&A advisors at PSMJ never drive our clients into a deal. We arm you with guidance and help you execute your goals with unparalleled expertise.

Choose an M&A advisor who knows how to run a competitive process and maximize your outcome after the LOI is signed. We bring over five decades of A/E-specific experience to help you navigate every twist—because we know what’s really at stake.

Selling your firm isn’t the end of your story. With the right advisor, it’s the start of the best chapter yet.

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.