Founder-led structural engineering firms across the United States are increasingly considering SBA-financed internal ownership transitions as part of long-term succession planning. These structures enable firms to stay independent, protect long-standing client relationships, and ensure continuity in responsible leadership without the need for outside investors.
Roberts Engineering Group recently completed an ownership transfer through the Small Business Administration (SBA) 7(a) program. In this transaction, ownership shifted to a minority partner and key employee, while the founder received nearly full liquidity at closing. The buyout was structured using the Step-Up Legacy Plan™, a bank-financed internal transition framework designed specifically for architecture, engineering, and land surveying firms seeking liquidity at closing without the administrative complexity of an ESOP.
For structural engineering firms—especially those involved in multi-year building projects, public-sector work, and technically complex assignments—maintaining continuity in responsible leadership and institutional knowledge is crucial. Sudden changes in ownership or governance can disrupt project delivery, erode client confidence, and damage long-standing professional relationships. Consequently, many firm owners are exploring alternatives to traditional third-party sales or private equity transactions.
Why Internal Transitions Are Increasing
Structural engineering firms often share characteristics that make internal transitions viable:
· Stable, recurring project flow
· Established leadership teams
· Long-term client relationships
· Predictable cash flo
When these elements are present, bank financing, including SBA 7(a) loans, can facilitate an ownership transfer to key employees. Unlike private equity deals, where control shifts to outside investors, an SBA-backed internal buyout keeps ownership within the company and is typically funded by the company’s cash flow rather than the successor’s personal capital.
“This was a deliberate capital event designed to align ownership with leadership,” said Carmela Roberts, former President of Roberts Engineering Group. “The structure allowed for a smooth, well-planned transition that safeguards our clients, our employees, and the long-term stability of the business.”
Planning Is Essential
While SBA-financed internal transitions can close faster than some alternatives, they work best when planned ahead. Leadership development, financial transparency, backlog visibility, and early lender engagement all help ensure a successful process.
As the structural engineering field continues to evolve, ownership structure is becoming a strategic factor. SBA-supported internal transitions provide firms with a way to balance liquidity, independence, and long-term continuity while safeguarding the technical legacy established by their founders.
About the Transaction Advisor
Allen Business Advisors served as the transaction advisor. The firm specializes exclusively in ownership transitions for architecture, engineering, and land surveying firms nationwide, with particular expertise in SBA-financed internal buyouts as an alternative to ESOPs and traditional third-party sales. Learn more.