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
Senior Living Design | Jan 24, 2024
Former Walgreens becomes affordable senior living community
Evergreen Real Estate Group has announced the completion of Bellwood Senior Apartments. The 80-unit senior living community at 542 25th Ave. in Bellwood, Ill., provides independent living options for low-income seniors.
AEC Tech | Jan 24, 2024
4 ways AEC firms can benefit from digital transformation
While going digital might seem like a playground solely for industry giants, the truth is that any company can benefit from the power of technology.
Giants 400 | Jan 23, 2024
Top 60 Parking Structure Architecture Firms for 2023
Choate Parking Consultants, Page Southerland Page, Gensler, AO, and Elkus Manfredi Architects top BD+C's ranking of the nation's largest parking structure architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Industry Research | Jan 23, 2024
Leading economists forecast 4% growth in construction spending for nonresidential buildings in 2024
Spending on nonresidential buildings will see a modest 4% increase in 2024, after increasing by more than 20% last year according to The American Institute of Architects’ latest Consensus Construction Forecast. The pace will slow to just over 1% growth in 2025, a marked difference from the strong performance in 2023.
Giants 400 | Jan 23, 2024
Top 110 Medical Office Building Architecture Firms for 2023
SmithGroup, CannonDesign, E4H Environments for Health Architecture, and Perkins Eastman top BD+C's ranking of the nation's largest medical office building architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Giants 400 | Jan 22, 2024
Top 100 Outpatient Facility Architecture Firms for 2023
HDR, CannonDesign, Stantec, Perkins&Will, and ZGF top BD+C's ranking of the nation's largest outpatient facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes design revenue for work related to outpatient medical buildings, including cancer centers, heart centers, urgent care facilities, and other medical centers.
Construction Costs | Jan 22, 2024
Construction material prices continue to normalize despite ongoing challenges
Gordian’s most recent Quarterly Construction Cost Insights Report for Q4 2023 describes an industry still attempting to recover from the impact of COVID. This was complicated by inflation, weather, and geopolitical factors that resulted in widespread pricing adjustments throughout the construction materials industries.
Transit Facilities | Jan 22, 2024
Top 40 Transit Facility Architecture Firms for 2023
Perkins&Will, HDR, Gensler, Skidmore, Owings & Merrill, and HNTB top BD+C's ranking of the nation's largest transit facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes design revenue for work related to bus terminals, rail terminals, and transit stations.
Hotel Facilities | Jan 22, 2024
U.S. hotel construction is booming, with a record-high 5,964 projects in the pipeline
The hotel construction pipeline hit record project counts at Q4, with the addition of 260 projects and 21,287 rooms over last quarter, according to Lodging Econometrics.
Modular Building | Jan 19, 2024
Virginia is first state to adopt ICC/MBI offsite construction standards
Virginia recently became the first state to adopt International Code Council/Modular Building Institute off-site construction standards.