Engineering Executives Vie To Lead Private Equity Assets
Private equity continues investments in engineering companies. Whether buying firms as wholly owned assets or in part ownership, these venture capitalists are approaching firms with a multitude of proposals. Their growing role in the consulting engineering industry is welcomed to many firm stakeholders as infrastructure federal funding continues to lag.
Starting in the early 2000’s, firms engaged with outside funding to enhance growth either in new sectors or locations. An influx of capital permitted companies to became a base to “bolt on” other companies through mergers/acquisitions. Existing leadership teams were retaining their roles. Today, current company leadership teams are either not interested or unprepared for the rapid growth desired by the new stakeholders and are often finding themselves sidelined from the “C” suite.
The Metzner Group, LLC has received a number of “C” level searches for investors and have found that key industry executives are eyeing these platforms as an opportunity to join for a 3-5 year term and guide growth. It offers them the excitement and challenge of a new opportunity with the potential to (in some cases) purchase their efforts when their contracts expire.
Is this the new industry standard? Thoughts?