flexiblefullpage

HORIZONTV FEATURING BD+C: WATCH EPISODES ON DEMAND AT HORIZONTV

Menu View Full Menu
Subscribe Here
billboard
interstitial1
catfish1
Currently Reading

M&A activity down in 2013 among architecture, engineering firms: Report

M&A activity down in 2013 among architecture, engineering firms: Report

Many of the firms that have traditionally been the most active buyers in the industry spent 2013 mostly on the sidelines. 

By Morrissey Goodale | February 5, 2014
Continue Reading
In 2013, consultant Morrissey Goodale observed 168 sales of U.S.-based architecture and engineering (“A/E”) firms – down nearly 7% from the record 180 sales of U.S.-based A/E firms in 2012. Similarly, just 107 international A/E firms sold in 2013, a drop of more than 20% from the 135 deals in 2012. Yet 2013 was anticipated by many to be another break-neck, record-setting year for A/E industry M&A. The economy continued to recover, performance at many firms climbed back to pre-recession levels, and things were looking up for a year of rapid deal-making. So what caused industry dealmakers to slow down after living 2012 in the fast lane? 
 
·       Owners rode the (modest) wave. As the economy persisted to creep toward respectability in 2013 and value continued to build in A/E firms, prospective sellers showed an increasing reluctance to jump at offers. Instead, they were inclined to take the longer view of building a track record of solid performance, desiring to sell at the high (or at least higher) water mark that many A/E firm leaders believe is still on the horizon.
 
·       Tax-driven deal spike late in 2012. U.S. sellers seemed to be certain they needed to sell in 2012 to minimize capital gains which were anticipated to climb in 2013. We observed an unusually high flurry of deal activity in late 2012, seemingly driven by a desire to get deals done by year end. With tax rates steady for the foreseeable future, we anticipate the competitive environment, age, ownership and leadership transition, and other factors will drive owners’ desires to sell their firms.
 
·       Large firms took a breather in 2013. Many of the firms that have traditionally been the most active buyers in the industry spent 2013 mostly on the sidelines. Firms like AECOM, SNC-Lavalin, Genivar (now WSP Global), IBI Group, ARCADIS, and URS, among others, slowed or stopped their M&A programs in 2013. This decline may be attributable to the need to integrate the firms they acquired over the last few years, work on internal initiatives, or simply being unable to find and close deals that met their strategic needs at appropriate valuations in 2013.
 

About Morrissey Goodale LLC

Based in Newton, Mass., Morrissey Goodale LLC is a leading management consulting and research firm serving the architecture, engineering, and Construction (AEC) industry. 

Tags

Related Stories

Top 100 Architecture Engineering Firms for 2024, The 80,000-sf civic building at the City of South San Francisco Community Civic campus, designed by SmithGroup Photo: Kyle Jeffers, courtesy SmithGroup
Giants 400 | Sep 6, 2024

Top 100 Architecture Engineering Firms for 2024

Stantec, HDR, Page, HOK, and Arcadis North America top Building Design+Construction's ranking of the nation's largest architecture engineering (AE) firms for nonresidential building and multifamily housing work, as reported in BD+C's 2024 Giants 400 Report.

Fact sheet outlines benefits, challenges of thermal energy storage for commercial buildings Photo: Pixabay
Office Buildings | Sep 6, 2024

Fact sheet outlines benefits, challenges of thermal energy storage for commercial buildings

A U.S. Dept. of Energy document discusses the benefits and challenges of thermal energy storage for commercial buildings. The document explains how the various types of thermal energy storage technologies work, where their installation is most beneficial, and some practical considerations around installations.

Jack C. Taylor Visitor Center in St. Louis, Photo Credit: Casey Dunn, courtesy Ayers Saint Gross
Giants 400 | Sep 6, 2024

Top 200 Architecture Firms for 2024

Gensler, HKS, Perkins&Will, Corgan, and Populous top Building Design+Construction's ranking of the nation's largest architecture firms for nonresidential building and multifamily housing work, as reported in BD+C's 2024 Giants 400 Report.

Office space downsizing trend appears to be past peak Image by Pexels from Pixabay
Office Buildings | Sep 5, 2024

Office space downsizing trend appears to be past peak

The office downsizing trend may be past its peak, according to a CBRE survey of 225 companies with offices in the U.S., Canada, and Latin America. Just 37% of companies plan to shrink their office space this year compared to 57% last year, the survey found.

UC San Diego’s new Multidisciplinary Life Sciences Building will support research and teaching in both health and biological sciences Photo courtesy Flad Architects
University Buildings | Sep 4, 2024

UC San Diego’s new Multidisciplinary Life Sciences Building will support research and teaching in both health and biological sciences

The University of California San Diego has approved plans for a new Multidisciplinary Life Sciences Building, with construction starting this fall. The 200,000-sf, six-level facility will be the first building on the UC San Diego campus to bridge health science research with biological science research and teaching. 

Atlanta aims to crack down on blighted properties with new tax, Image by Eric Stokley from Pixabay
Codes and Standards | Sep 3, 2024

Atlanta aims to crack down on blighted properties with new tax

A new Atlanta law is intended to crack down on absentee landlords including commercial property owners and clean up neglected properties. The “Blight Tax” allows city officials to put levies on blighted property owners up to 25 times higher than current millage rates.

Phius introduces retrofit standard for more resilient buildings Image by Peggy und Marco Lachmann-Anke from Pixabay
Resiliency | Sep 3, 2024

Phius introduces retrofit standard for more resilient buildings

Phius recently released, REVIVE 2024, a retrofit standard for more resilient buildings. The standard focuses on resilience against grid outages by ensuring structures remain habitable for at least a week during extreme weather events.

More than 1.2 billion sf of office space have strong potential for residential conversion Image by Pete Linforth from Pixabay
Adaptive Reuse | Aug 29, 2024

More than 1.2 billion sf of office space have strong potential for residential conversion

More than 1.2 billion sf of U.S. office space—14.8% of the nation’s total—have strong potential for conversion to residential use, according to real estate software and services firm Yardi. Yardi’s new Conversion Feasibility Index scores office buildings on their suitability for multifamily conversion.

Designing for dyslexia: How architecture can address neurodiversity in K-12 schools, Rendering courtesy Ratcliff
K-12 Schools | Aug 29, 2024

Designing for dyslexia: How architecture can address neurodiversity in K-12 schools

Architects play a critical role in designing school environments that support students with learning differences, particularly dyslexia, by enhancing social and emotional competence and physical comfort. Effective design principles not only benefit students with dyslexia but also improve the learning experience for all students and faculty. This article explores how key design strategies at the campus, classroom, and individual levels can foster confidence, comfort, and resilience, thereby optimizing educational outcomes for students with dyslexia and other learning differences.

Rendering: © Atchain, courtesy BIG
Museums | Aug 29, 2024

Bjarke Ingels' Suzhou Museum of Contemporary Art conceived as village of 12 pavilions

The 60,000-sm Suzhou Museum of Contemporary Art in Suzhou, Jiangsu, China recently topped out. Designed by Bjarke Ingels Group (BIG), the museum is conceived as a village of 12 pavilions, offering a modern interpretation of the elements that have defined the city’s urbanism, architecture, and landscape for centuries. 

boombox1
boombox2

Top Articles

native1

More In Category

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021