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
Luxury Residential | Feb 1, 2024
Luxury 16-story condominium building opens in Chicago
The Chicago office of architecture firm Lamar Johnson Collaborative (LJC) yesterday announced the completion of Embry, a 58-unit luxury condominium building at 21 N. May St. in Chicago’s West Loop.
Industry Research | Jan 31, 2024
ASID identifies 11 design trends coming in 2024
The Trends Outlook Report by the American Society of Interior Designers (ASID) is the first of a three-part outlook series on interior design. This design trends report demonstrates the importance of connection and authenticity.
Museums | Jan 30, 2024
Meier Partners' South Korean museum seeks to create a harmonious relationship between art and nature
For the design of the newly completed Sorol Art Museum in Gangneung, South Korea, Meier Partners drew from Korean Confucianism to achieve a simplicity of form, material, and composition and a harmonious relationship with nature. The museum is scheduled to open on February 14. It is the firm’s first completed project since restructuring as Meier Partners.
Luxury Residential | Jan 30, 2024
Lumen Fox Valley mall-to-apartments conversion completes interiors
Architecture and interior design firm Morgante Wilson Architects (MWA) today released photos of its completed interiors work at Lumen Fox Valley, a 304-unit luxury rental community and mall-to-apartments conversion.
Airports | Jan 30, 2024
Rafael Viñoly Architects’ design for the new Florence, Italy, airport terminal will feature a rooftop vineyard
At Florence, Italy’s Aeroporto Amerigo Vespucci, the new international airport terminal will feature a fully operating vineyard on the facility’s rooftop. Designed by Rafael Viñoly Architects, the terminal is expected to see over 5.9 million passengers annually. Renderings for the project have recently been released.
Giants 400 | Jan 29, 2024
Top 160 Workplace Interior Architecture Firms for 2023
Gensler, Interior Architects, HOK, SmithGroup, and Perkins&Will top BD+C's ranking of the nation's largest workplace interior and interior fitout architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Laboratories | Jan 25, 2024
Tactical issues for renovating university research buildings
Matthew Plecity, AIA, ASLA, Principal, GBBN, highlights the connection between the built environment and laboratory research, and weighs the benefits of renovation vs. new construction.
K-12 Schools | Jan 25, 2024
Video: Research-based design for K-12 schools
Two experts from national architecture firm PBK discuss how behavioral research is benefiting the design of K-12 schools in Texas, Florida, and other states. Dan Boggio, AIA, LEED AP, NCARB, Founder & Executive Chair, PBK, and Melissa Turnbaugh, AIA, NCARB, Partner & National Education & Innovation Leader, PBK, speak with Robert Cassidy, Executive Editor, Building Design+Construction.
Women in Design+Construction | Jan 25, 2024
40 Under 40 Class of 2023 winner Kimberly Dowdell inaugurated as AIA 2024 President
The American Institute of Architects (AIA) has announced the inauguration of Kimberly Dowdell, AIA, NOMAC, NCARB, LEED AP BD+C, Principal and Director of Strategic Relationships at HOK and BD+C 40 Under 40 superstar, as its 100th president.