Sellers, Avoid These 7 Deadly Sins

Sellers, Avoid These 7 Deadly Sins

As we head into our fifth year of 400-plus transactions in the AE industry (yes, that’s one or more design or environmental consulting firms sold every single day), here are some sins that first-time, aspiring sellers of their firms should be aware of (and avoid).

1. The Sin of Time Wasting (Yours): This comes when you’re approached about selling your firm—not by a real acquirer, but by the representative of a ubiquitous and odious “tire kicker.” This is the term we use in the business for firms that talk a good game about making acquisitions (“important for our strategic plan,” “inorganic growth complements our organic growth,” blah blah) but never actually acquire any firms. There are about 200 known tire kickers. Don’t commit the sin of wasting any time with them. You’ll regret it. 

How to avoid: Do your homework on them. Ask direct, pointed questions, including “What firms have you acquired in the past?” If they hem and haw or say something like “we’ve a lot of opportunities in our pipeline” but don’t provide a definitive answer, then you’re dealing with a tire kicker.

2. The Sin of Unnecessary Collateral Damage: Whether you’re wasting time with a tire kicker (please don’t) or engaging with a real buyer (see below), lock everything down with an airtight confidentiality agreement UP FRONT. The last thing you want is for either your clients or your employees to inadvertently learn that you are in discussions to possibly sell your firm.

How to avoid: Have an attorney-prepared (don’t “cheap out” on this), gold-plated confidentiality agreement at the ready for the suitor to sign. Don’t allow any changes or redlines. Protect yourself. If they’re a quality buyer, they will know the rules of the game and be happy to sign.

Note: Firms that are definitely NOT tire kickers can be found on our list of “Ten Industry Movers and Shakers to Watch in 2025”, our list of top buyers with revenues over $300 million, and any of the Excellence in Acquisitive Growth Award recipients. If you’re dealing with any of these firms, you’re dealing with a quality acquirer.

3. The Sin of Willful Ignorance: So, you’ve fended off the tire kicker(s), and you’re dealing with a “real” buyer. Great. Do them (and yourself) a favor…Read more