Architect's essentials of ownership transition / Peter Piven with William Mandel.

Format:

Book

Author/Creator:

Piven, Peter.

Contributor:

American Institute of Architects.

Series:

Architect's essentials of professional practice series

Language:

English

Subjects (All):

Architectural firms--Ownership--United States.

Architectural firms.

Architectural firms--Ownership.

Management.

United States.

Architectural firms--United States--Management.

Physical Description:

xv, 189 pages ; 22 cm.

Place of Publication:

New York : J. Wiley, [2002]

Summary:

Find the concise, practical business information you need right now in the Architect's Essentials of Professional Practice Series. These authoritative guides quickly make you an instant expert on the best business practices crucial for success in today's design and construction professions. Architect's Essentials of Ownership Transition takes the guesswork out of buying, selling, merging, and other forms of design firm ownership transfer. It provides instant access to highly focused, very specific advice on all critical transition phases, including candidate selection, valuation, transfer mechanisms, implementing an ownership transition program, and more. Written by leading experts in the field, it is an indispensable resource for architects, landscape architects, interior designers, and other design professionals planning to participate in an ownership transition.

Contents:

What Is Ownership Transition? 2

Why Is Ownership Transition Necessary? 3

2 Ownership Transition Options 7

Internal Transfer 7

Bring in a Leader 8

Merger 9

Acquisition 9

Employee Stock Ownership Plan (ESOP) 11

Liquidation 13

3 Determining Candidate Selection Criteria and Communicating Founders' Expectations 17

What Do Owners Contribute to Firms? 17

Candidate Selection Criteria 20

Communicating Expectations to New Owners 32

4 Valuing the Firm: How Much Is It Worth? 37

What Is Value? 37

How Is Value Determined? 39

Components of Valuation 40

Purposes of Valuation: How Valuation Is Used in the Ownership Transition Process 42

Determining Value 46

Methods of Determining Value 47

Extenuating Circumstances and Exceptions 73

5 Making the Purchase Affordable: Ownership Transfer Mechanisms 81

After-tax Transaction for Stock 81

After-tax Stock Purchase Plus Compensation Exchange Method 84

Deferred Compensation Method 86

Owner Transfer for Partnership or Limited Liability Companies 90

Zero-based Transfer 91

6 Designing the Ownership Transition Program 93

Important Considerations 93

7 Getting the Ownership Transition Program Started 103

Assembling the Team 103

Laying the Foundation 104

Designing the Program 105

Evaluating Candidates 106

Establishing a Rate of Transition 108

Deciding on the Terms 111

Documenting the Program 113

8 Documenting the Ownership Transition Program 117

Offering Memorandum 118

Stock Purchase Agreement 122

Secured Promissory Note 123

Security Agreement 124

Stockholder Agreement 126

Indemnification Agreement 135

Deferred Compensation Agreement 137

Employment Agreement 137

Why Is Spousal Consent Required for Some Program Documents? 138

Ownership Transition Documents for Organizations Other Than Corporations: Partnerships and Limited Liability Companies 139

9 Choosing the Form of Entity 141

Partnership 143

General Corporation 145

Professional Corporation 149

Limited Liability Company 150

10 Developing Leadership in the Firm 153

What Are Leaders? 153

What Attributes Do Leaders Have? 155

Process of Leadership Development 159

Leadership and Management 163

11 Preparing for Future Transition 167.

Notes:

"The American Institute of Architects"--Cover.

Includes bibliographical references (page 181) and index.

ISBN:

0471434817

OCLC:

48033062