OWNERSHIP TRANSFER OF DESIGN ENGINEERING CONSTRUCTION FIRMS

For businesses, and the design engineering/construction industry in particular, there are few events as important as transferring the ownership of a business because many factors are involved where ownership transfer is desired. Many industry professionals lack an understanding of these factors, consequently putting the efficiency of the transfer at risk. This paper addresses the various factors of ownership transfer from legal and nonlegal perspectives, with particular emphasis upon the practical implications of these factors in the everyday context of the design engineering and/or construction firm. Legal tools are proposed that in proper situations may properly effectuate ownership transfer. This paper emphasizes a coherent and chronological approach to ownership transfer, although in many situations a different approach may be required. The purpose of this paper is to provide guidance to design engineering and construction firms in planning for ownership transfer for several reasons: (1) Planning enables the firm to remain as an ongoing business concern and perform its professional obligations; and (2) planning reduces the possibility of design engineer/contractor failure by providing for professional and economic continuity between the old and new owners. This paper presents the various factors involved in this process and illustrates the importance of recognizing these factors within the whole process of ownership transfer.