The Unscripted Rise: Leading a Firm Through M&A

In the architecture, engineering, and construction (AEC) industry, M&A conversations often focus on the financial metrics and strategic alignments. However, the most vital part of a successful acquisition often isn’t found in a spreadsheet; it’s discovered in a compelling story of resilience, unexpected leadership, and deep personal connection.

That’s what we explore in our latest podcast episode of AEC Unscripted: M&A Edition. I had the privilege of sitting down with Tracy Scott, former owner of AVID Group. It was a remarkably candid conversation, revealing the powerful human element at the heart of AVID’s successful sale to McAdams. This episode offers a side of M&A not typically found in traditional transaction reports.

An Unexpected Call to Leadership

Tracy Scott’s journey is unique. She joined her brother’s firm, AVID Group, a civil engineering and land planning firm, in 2002, taking charge of the business side. For nearly two decades, she supported her brother in guiding AVID’s growth, navigating economic shifts and market changes. However, a profound personal tragedy in 2021 unexpectedly thrust Tracy into the role of sole owner and leader.

Suddenly, Tracy found herself responsible for her brother’s legacy, navigating the immense operational complexities of leading the firm through an unexpected transition without its founder. Her response demonstrated remarkable resilience and a decisive ability to step into unforeseen leadership. She shares how swiftly she worked to maintain stability, ensure employee trust, and keep the business thriving during an incredibly challenging period.

The Human Element in Action: Preparing for a Sale

When the time came to consider a potential merger or acquisition, Tracy’s approach was deeply personal and insightful. She emphasizes the importance of knowing your firm’s worth – independent valuations provided her with the confidence that comes from a clear understanding of AVID’s true standing as she approached the negotiation table. Equally important was securing the buy-in from her senior leaders and ensuring her team would be well cared for post-acquisition.

Our podcast sheds light on the often-overlooked emotional journey of a seller. Tracy reveals her initial reluctance, the pivotal role of a personal outreach letter from John McAdams, and how her team’s support ultimately opened the door for discussions. This demonstrates that successful M&A isn’t solely about financial alignment: it’s profoundly about genuine connection and shared vision.

Navigating Due Diligence and Seamless Integration

For many firm leaders, due diligence can feel like an intense, “open book” examination of every facet of their business. As AVID’s CFO, Tracy was at the forefront of this exhaustive process. She candidly describes the intensity of providing extensive financial, operational, and corporate records, highlighting the necessity of being prepared and having Stambaugh Ness by your side. The sheer volume of information requested can be daunting, but as Tracy notes, it’s a necessary step towards a successful outcome.

During our conversation, we also discussed the post-acquisition experience. Tracy discusses the challenges and rewards of cultural integration, the significant shift from being a top decision-maker to navigating a new structure, and learning to leverage a larger organization’s vast resources. From merging accounting systems and benefits to moving into a new 17,000-square-foot office in Tampa, AVID’s integration into McAdams highlights the practical steps and strategic thinking required for seamless transitions. Her insights underscore that integration is an ongoing process demanding adaptability, open communication, and a clear vision for continued growth.

Vital Lessons for Your Firm’s Future

Tracy Scott’s unscripted story is a compelling reminder that behind every successful M&A transaction are real people, their passions, and their legacies. Her journey provides invaluable lessons for AEC firm leaders, finance professionals, and strategic buyers on navigating the complexities of ownership transition:

Proactive Succession Planning

Tracy’s experience underscores the critical importance of clear, distinct succession plans and operating agreements. Preparing your business for the future is essential.

Trust and Communication

Maintaining transparency and consistent communication with employees and key leaders can stabilize your firm during times of uncertainty and build collective faith in the path forward.

Knowing Your Worth & Preparing for Due Diligence

Independent valuations are crucial. Be prepared for a rigorous due diligence process by organizing your financials and corporate records, and by having trusted advisors.

Cultural Alignment and Buy-in

Finding the right cultural fit with an acquiring firm is as important as financial synergies. Ensuring buy-in from your leadership team can significantly impact the integration process.

Accelerate Your Firm’s Future

Ready to accelerate your success in AEC and explore the strategic opportunities that mergers and acquisitions can offer your firm? Tracy Scott’s unscripted story offers a compelling roadmap.

At Stambaugh Ness, we understand the complexities of M&A in the architecture and engineering industry. Whether you’re contemplating an exit strategy, seeking strategic growth through acquisition, or navigating complex transitions, our team delivers unparalleled expertise. We support firms like yours in overcoming challenges, driving growth, improving operations, and enhancing performance for long-term value.

To learn more about how our M&A advisory services can support your business, contact us today to discuss your M&A future. Let’s work together to accelerate your success in the AEC industry.

Listen to the Full Episode

Tune into From Legacy to Leadership: AVID’s Path Through AEC M&A on your favorite podcast platform to hear Tracy Scott’s complete story and gain deeper insights into the human element of M&A.