I have been out on my own for over two years now and business is getting a bit more consistent, but there are still off weeks where I can not pay myself. I have been approached by another (non-surveying) company about a possible merger. Advantages to me would be increased client lists and a steady wage with a partnership in the existing company. Disadvantages would be giving up my independence and sharing in the receivables, both what I bring in myself and new business via the existing company. Does anyone have advice or a similar experience to share? Any help with this decision is much appreciated.
I assume the other company is in the design field, i. e. engineering but not surveying?
Nice to have a paycheck every week, however, you will also be taking on a share of the debt, responsibility for making sure everyone else gets paid, it is not all cake and ice cream, lots of responsibility. Spending more time in business management rather than surveying.
in my opinion things are getting better. if you have survived the last two years you should be able to make a go of it on your own. good luck whatever you decide.
> I have been out on my own for over two years now and business is getting a bit more consistent, but there are still off weeks where I can not pay myself. I have been approached by another (non-surveying) company about a possible merger. Advantages to me would be increased client lists and a steady wage with a partnership in the existing company. Disadvantages would be giving up my independence and sharing in the receivables, both what I bring in myself and new business via the existing company. Does anyone have advice or a similar experience to share? Any help with this decision is much appreciated.
Be sure you know the laws concerning companies offering surveying services in the area you propose to serve.
With a few minor exceptions, corporations that offer surveying services in North Carolina must be 2/3rds owned by North Carolina PLS's.
These are the sorts of questions to which you better know the answer before getting in too deeply.
Larry P
> With a few minor exceptions, corporations that offer surveying services in North Carolina must be 2/3rds owned by North Carolina PLS's.
That strikes me as an odd requirement. If the same rule is in force for corporations offering engineering services, that means that all NC surveying/engineering corporations have to be owned by dual licensees. Is that the case?
VA has similar requirements. For a corporation in VA, at least 2/3 of the board of directors has to be a licensed professional.
It's like getting married. You'd better know your partner very well. Divorce is really painful.
Spell out everything in detail such as how revenue is shared, equity, etc. Spell out what happens if you decide the merger doesn't work. Who takes what? A prenup of sorts.
> I have been out on my own for over two years now and business is getting a bit more consistent, but there are still off weeks where I can not pay myself. I have been approached by another (non-surveying) company about a possible merger. Advantages to me would be increased client lists and a steady wage with a partnership in the existing company. Disadvantages would be giving up my independence and sharing in the receivables, both what I bring in myself and new business via the existing company. Does anyone have advice or a similar experience to share? Any help with this decision is much appreciated.
Partnerships are very risky. I would avoid it unless I had no other options.
It all depends on your style of management. It can be a great thing, but make sure you have a good exit strategy and beware of any Non-compete clauses!!!
> VA has similar requirements. For a corporation in VA, at least 2/3 of the board of directors has to be a licensed professional.
Licensed professional -- surveyor *and/or* engineer -- I can understand. Larry said PLS, but maybe he meant PLS and/or engineer.
They did not make the offer for your benefit, nor do you seem to need them, don't bite. They may just be wanting a stamp they think they control. Have seen that in the past.
jud
I made that mistake 4 years ago, and now I'm back on my own. Sounded good at first, but it isn't.
Instead, make them a very good client.
Are you sure about that 2/3's thing Mr. P.?
You remember that first engineering/surveying firm I worked for don't you. John was the only PLS that was a "partner" [and, only on paper]. Maybe that firm was one of those exceptions being they were multi-state and the home office was not in NC.
Then there was that last firm I worked for up there. The firm was started as strictly surveying by Sr. When Jr. got his engineering license then it became an engineering/surveying firm. When I came along there, the firm was primarily all engineering and the company ran by Jr. However, on the surveying side, Sr. still ran the roost. I remember being some stipulation that since we didn't [yet] have an LS in our Asheville office, that Sr. had to spend so many hours a week with us.
E
In this poor economy, you have to do what you have to do to survive.
Put your family needs ahead of your personal goals and pride.
Then in a year or two when the economy is back on track, you can do what you want to.
Boy these guys got sidetracked huh???
Call me if ya want to.
Just sold my soul to the man a week ago.
Could be therapeutic for me to talk ...
Thanks to everyone who shared their thoughts on my question, I appreciate the feedback and it has given me some additional things to consider when making this decision.
If you have liability insurance and you transfer to their policy - make sure they include payment for prior work from your old company. If not you will have to retain some policy at your cost.