Urban planners, project managers, and quantity surveyors play a central role in shaping the built environment — managing everything from land use frameworks to construction timelines and cost control.
But when it comes to planning their own exit, many founders in these firms are unprepared.
Most small and mid-sized project advisory firms are led by one or two principal consultants.
They’re often well-regarded in the market, have deep trust with clients, and are fully booked with repeat work.
But under the surface, these businesses are key-person dependent — and vulnerable when the founder wants to step back.
Unlike engineers or architects, many PM/QS/Planning firms lack structured equity pathways or junior shareholder tracks. Which means that when it’s time to exit:
- There’s no clear successor
- The team is loyal but unprepared
- And the founder has no structured way to extract value without disrupting the work
That’s where employee-led buyouts (ELBOs) or management buyouts (MBOs) become a smart and strategic solution.
Why These Firms Struggle With Succession
Whether you’re managing capital works for a university, coordinating multi-disciplinary infrastructure bids, or advising on planning approvals, the business model is similar:
- Project-based revenue
- High professional credibility
- Low physical assets
- Deep reliance on relationships
Which means that succession often hits these roadblocks:
1. Key-Person Risk
Clients expect you to lead the engagement. They may be unaware of capable team members behind the scenes.
2. Founder-Led Business Development
Rainmaking is centralised. Without the founder, pipeline visibility drops.
3. Flat Structures = Few Future Leaders
Without a clear pathway, talented PMs or QSs leave to join larger firms — or start their own.
4. Modest Multiples for Third-Party Sales
Advisory firms often attract 2–4x EBITDA in external sales — and many acquirers only want the book, not the team.
Founders are left with a dilemma: walk away, sell cheap — or stay longer than they want to.
Why ELBOs Fit the Project Advisory Model
Internal buyouts provide a way out — without walking away from what matters most: clients, team and reputation.
Here’s why they work:
1. Capability Is Already in the Team
Your Associates, Senior PMs or Lead QSs are already managing deliverables and client expectations. With structure and coaching, they can manage ownership.
2. Low Capex, High Margin Model
These firms often have strong cash flow and minimal overhead — perfect for vendor-financed transitions that don’t burden successors with upfront capital.
3. Client Continuity is Easier Internally
Clients are more likely to stick with a known team that’s been involved from day one — especially if the founder remains on as an advisor for a period.
4. Project Visibility Enables Deal Structuring
Future pipeline gives confidence to structure earnouts, staged exits, or performance-linked equity transitions.
What Is an ELBO — and How Does It Work?
An Employee-Led Buyout (ELBO) is a structured succession model that allows internal leaders — often senior consultants or project managers — to become the new owners over time.
The structure often includes:
- Vendor finance — the founder receives payments over 3–5 years
- Share schemes or buy-in plans — enabling equity participation aligned with performance
- Governance upgrades — including advisory boards or structured decision-making
- Coaching and mentoring — to prepare successors for strategic and commercial leadership
Most successors don’t need savings. They need a structure — and a founder who’s willing to step back with a plan.
Real Case Snapshot (Anonymised – New Zealand)
Business: Project management consultancy focused on healthcare and aged care construction projects
Founder age: 61
Team size: 14
Challenge: No family successor, two senior PMs showing interest but lacking capital or confidence.
Solution:
- Structured MBO for the two senior PMs
- Vendor-financed equity transfer over 4 years
- Founder remained in an advisory role and led governance setup
- Client messaging plan executed to reinforce continuity
Outcome:
- Client base retained 100%
- New owners successfully led three major hospital builds
- Founder fully exited after 30 months with payout completed
Source: Blue Harbour Capital engagement (anonymised)
Why Founders in Project Advisory Are Choosing ELBOs
“I want to protect my team and client base.”
Internal succession preserves trust — without disruptive changes.
“My team can do the work — they just need a plan to lead.”
We help turn capability into confidence.
“I want value from the business, but I don’t need to cash out all at once.”
Vendor finance allows phased returns without burdening the business.
“I still want to stay involved in some way.”
You can remain as a mentor, advisor or chair — while empowering the next generation.
How Blue Harbour Capital Helps
We support QS, planning and project advisory firms through:
- Internal succession structuring (ELBOs, MBOs, hybrid models)
- Shareholder agreement design and deal structuring
- Leadership coaching for the new ownership team
- Transition roadmaps, including staff and client messaging
- Governance and performance management post-deal
We don’t buy your business.
We help you transition it — sustainably and strategically.
Five Steps to Start Your Succession Plan
- Clarify your goals
- What does success look like for you, your team and your clients?
- Map your internal leadership bench
- Who’s ready — and who could be with the right support?
- Get a valuation
- Including pipeline, client concentration and delivery capacity
- Explore structuring models
- Vendor finance, earnouts, employee share trusts, hybrid capital
- Build a transition roadmap
- Communication, governance, coaching and KPI monitoring
Let’s Talk Succession in Project Advisory
Whether you’re a QS, planner or project delivery expert — you’ve built a practice grounded in trust, delivery and reputation.
Now it’s time to plan your next project: succession.
Contact Blue Harbour Capital for a confidential, founder-first conversation.