Strategy & Corporate Finance Practice
Our signature offering is a “Peer Benchmarking Analysis,” or what we call a “financial MRI” – it compares an AEC firm to 20-40 peers across 150+ financial and business metrics, enabling EFCG and our clients to quickly identify the relative strengths and weaknesses of their business and develop an action plan to address key opportunities.
Metrics included in the analysis include:
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Revenue Growth and Profitability
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Multiplier and Utilization
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Recruitment and Turnover
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Staff Diversity
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Office Footprint
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Technology Investments
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Overhead (includes deep dive)
We conduct over a hundred of these analyses each year and they are included in every Corporate Valuation we complete for clients.
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EFCG serves as an independent valuation appraiser to the AEC Industry, conducting Corporate Valuations for over 30 AEC firms every year (500+ to date).
We do these valuations for three primary purposes:
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M&A Engagements: EFCG works with buyers and/or sellers (depending on who we are advising) in a transaction to determine a fair purchase price for the target firm
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Internal Ownership Transitions: EFCG derives the equity value of the firm, and subsequently the stock price. This enables the company to price its equity for shareholders that are buying and/or selling stock
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ESOP Annual Valuation Requirement: In accordance with the Internal Revenue Code 401(a)(28)(c), ESOPs are required to have an independent appraisal valuation report that represents fair market value of the firm
Given that EFCG has the most extensive database of transaction information on deals that are closed in this industry, we believe our approach arrives at the most accurate reflection of company value. Additionally, because of our extensive experience working with employee-owned firms, we understand the nuances and considerations of valuing a firm for the purposes of Internal Ownership Transition versus M&A.
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As a trusted advisor with cross-industry experience (including with Fortune 100 companies), EFCG serves as an invaluable partner in helping AEC firms develop and execute on strategic plans. We often say, a strategic plan reflects what a company is investing in and focusing on “above and beyond” its normal course of business.
To develop an effective strategy, we assess both “external” perspectives (i.e. where the industry and market are headed) and “internal” perspectives (i.e. where staff and company management see the business headed). As a third party co-facilitating the process, EFCG is in a unique position to have more challenging conversations, removed from internal politics and interpersonal dynamics. Our goal is to create a firmwide plan that presents an exciting roadmap for the business and articulates how every employee can be a part of it.
EFCG draws on its expertise advising firms in growth strategy, as well as its deep database of performance metrics, to provide Market Due Diligence services to both AEC firms and Investors in the industry. These scopes are heavily customized to answer the key questions firms have as they consider expanding or investing into a certain end market. Through the engagement and deliverables provided, our clients gain strong insight into whether an end market presents investment opportunities and/or aligns with their investment thesis.
EFCG has strong Pre- and Post-Merger Integration capabilities, supporting our buy and sell-side clients before and after a transaction occurs. By working with leaders from both the acquirer and the acquiree, EFCG facilitates a structured process in which both firms gain clarity and buy-in on the direction ahead. EFCG’s services include establishing a due diligence checklist, setting up an Integration Team, developing timelines and milestones for key integration activities, identifying major obstacles to successful integration, and designing communication plans and cascades.
EFCG’s Strategy & Corporate Finance Practice sits at the intersection of data and strategy.
Since our founding in 1990, we have dedicated ourselves to providing data-driven insights to AEC firms, enabling them to work smarter, grow faster, and create more value. Our services range from Peer Benchmarking and Corporate Valuations to Strategic Planning and Post-Merger Integration, each with an emphasis on supporting AEC firms in navigating key business challenges and opportunities.
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