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If they want to get bigger, and have maxed out the local high-end work and want to stay high end, it would seem that they would need to expand into other markets doing the same high-end work. If they want to capture more of the local Cali market, then maybe company acquisition would be better and faster. Landscape Architecture had an article a year or so ago about a company that was having success gobbling up other companies, assimilating their strengths.
But yeah - 130 employees doesn't sound mom-n-pop to me.
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