Driven by steady growth in the economy, domestic merger and acquisition (M&A) activity in the architecture and engineering industry hit record levels in 2015, according to Morrissey Goodale LLC, a leading business management consulting and training firm to the A/E industry. Growing uncertainty about foreign markets, however, contributed to a drop in the number
of international deals last year.
In 2015, Morrissey Goodale tracked a record 234 sales of U.S.-based A/E firms, representing a 5.4% increase over the 222 domestic deals recorded in 2014. Sales of international firms, however, dropped 8.5% from 117 in 2014 to 107 last year. When domestic and international sales are combined, overall global dealmaking in the A/E industry increased by 0.6% in 2015.
Other findings from Morrissey Goodale’s 2015 AEC M&A Year in Review include:
• Texas remained the hottest spot for M&A activity in the United States with 31 firm sales in 2015. California was a close second with 24 firm sales. Other states that saw 10 or more deals last year included Illinois, New York, North Carolina, and Florida.
• More than half (57.7%) of U.S. deals in 2015 involved a buyer and seller from different states, up from 56.2% in 2014.
• More than a fifth (20.8%) of global deals in 2015 involved publicly traded buyers, down from 28.4% in 2014.
• Mega-deals tapered somewhat last year as the median revenue of buyers decreased from $77 million in 2014 to $59 million in 2015, while the median revenue of sellers declined from $4 million to $3 million.
Morrissey Goodale Principal Consultant Neil Churman expects M&A activity in the United States will remain strong in 2016. “Continued confidence among AEC industry leaders will likely drive another busy year for domestic mergers and acquisitions,” he says. “Unease about the price of oil may give some buyers pause in pursuing energy deals, but a new transportation bill and strength in other building and infrastructure markets should lead to continued deal activity among growth-minded firms.”
Morrissey Goodale’s complete 2015 AEC M&A Year in Review and an interactive map of M&A activity in the United States can be found at www.morrisseygoodale.com.
Related Stories
Headquarters | Jun 30, 2022
Lenovo to build its new global headquarters in Beijing
Washington, D.C.-based architecture and design firm CallisonRTKL has announced it will create the new global headquarters in Beijing for Lenovo Group, a Chinese multinational personal technology company.
Mass Timber | Jun 29, 2022
Mass timber competition: building to net-zero winning proposals
The 2022 Mass Timber Competition: Building to Net-Zero is a design competition to expand the use of mass timber in the United States by demonstrating its versatility across building types and its ability to reduce the carbon footprint of the built environment.
Laboratories | Jun 29, 2022
The "collaboratory" brings digital innovation to the classroom
The Collaboratory—a mix of collaboration and laboratory—is a networking center being designed at the University of Denver’s College of Business.
Airports | Jun 29, 2022
BIG and HOK’s winning design for Zurich airport’s new terminal
Two years ago, Zurich Airport, which opened in the 1950s, launched an international design competition to replace the aging Dock A—the airport’s largest dock.
Museums | Jun 28, 2022
The California Science Center breaks grounds on its Air and Space Center
The California Science Center—a hands-on science center in Los Angeles—recently broke ground on its Samuel Oschin Air and Space Center.
Contractors | Jun 27, 2022
Reverse mentorship: A model for the future of the construction workforce
Reverse mentorship can help seasoned professionals develop new skills, stay connected with younger generations, and gain future-forward insights for life and business.
Building Team | Jun 27, 2022
Chapel of St. Ignatius by Steven Holl Architects receives AIA’s twenty-five year award
The American Institute of Architects (AIA) is honoring the Chapel of St. Ignatius in Seattle, designed by Steven Holl Architects, with its Twenty-five Year Award.
Green | Jun 22, 2022
The business case for passive house multifamily
A trio of Passive House experts talk about the true costs and benefits of passive house design and construction for multifamily projects.
Building Team | Jun 22, 2022
Design for new San Clemente Marine Safety Headquarters would create new public plaza
A proposed design by HMC Architects for a new San Clemente Marine Safety Headquarters makes creative use of the seaside topography of the Pacific Coast.
Augmented Reality | Jun 22, 2022
Not just for POKÉMON GO anymore: how augmented reality is transforming architecture
By solving a long-standing communication problem, Augmented Reality (AR) is poised to make architecture quicker, nimbler, and more cost effective.