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

Ground cafe at Yale University, New Haven, Conn., by Bentel and Bentel Architect
| Jun 9, 2014

10 projects named 2014 AIA Small Project Award winners

Yale's funky new Ground café and a pavilion made from 53,780 recycled plastic bottles are among the nation's best new small projects. 

Credit: The Broad and Diller Scofidio + Renfro
| Jun 9, 2014

Eli Broad museum files $19.8 million lawsuit over delays

The museum, meant to hold Eli and Edythe Borad's collection of contemporary art, is suing the German company Seele for what the museum describes as delays in the creation of building blocks for its façade.

| Jun 8, 2014

What’s the word of the day? It’s all about ‘resiliency’

Just for the sake of argument, let’s put aside the rhetoric about climate change—whether it’s actually happening, whether it’s a result of manmade activity—and agree that we are experiencing some pretty dramatic weather events that are having huge impacts on populations here in the U.S. and worldwide.

The city of Buffalo hired a team of professionals to execute assessments for mor
Smart Buildings | Jun 8, 2014

Big Data: How one city took control of its facility assets with data

Over the past few years, Buffalo has developed a cutting-edge facility management program to ensure it's utilizing its facilities and operations as efficiently, effectively, and sustainably as possible. 

| Jun 6, 2014

Must see: Can a floating city offset urban population growth in China?

AT Design Office has proposed a design for a floating city to offset increasing urban populations in China. To create the new city, a 10-square kilometer island would be made out of prefab blocks. 

Renderings: courtesy Related Companies
| Jun 6, 2014

KPF, Kevin Roche unveil design for 51-story Hudson Yards tower in NYC [slideshow]

Related Companies and Oxford Properties Group are teaming to develop Fifty Five Hudson Yards, the latest addition to the commercial office tower collection in the 28-acre Hudson Yards development—the largest private real estate development in the history of the U.S.

| Jun 6, 2014

Shipping container ship terminal completed in Spain

In Seville, Spain, architectural firms Hombre de Piedra and Buró4 have designed and completed a cruise ship terminal out of used shipping containers.

The city of Santa Monica, Calif.'s Parking Structure 6 won for Best Design of a
| Jun 5, 2014

International Parking Institute names best new parking structures

Winners include garages that are architectural delights, an airport's canopied parking atrium, and an environmentally friendly garage under America's oldest park.

An example of emerging "live, work, play" strategy is the development of residen
| Jun 4, 2014

Emerging trends in healthcare development: neighborhood care, mixed-use models on the rise

In urban and even suburban markets, real estate is about the "live, work, play," with close proximity to mass transit and other amenities, like retail stores. Healthcare organizations are following suit.

Waterfront view including the competition site from the Market Square, looking s
| Jun 4, 2014

Want to design a Guggenheim? Foundation launches open competition for proposed Helsinki museum

This is the first time the Guggenheim Foundation has sought a design through an open competition. Anonymous submissions for stage one of the competition are due September 10, 2014.

boombox1
boombox2

Top Articles

native1

More In Category

Museums

UT Dallas opens Morphosis-designed Crow Museum of Asian Art

In Richardson, Tex., the University of Texas at Dallas has opened a second location for the Crow Museum of Asian Art—the first of multiple buildings that will be part of a 12-acre cultural district. When completed, the arts and performance complex, called the Edith and Peter O’Donnell Jr. Athenaeum, will include two museums, a performance hall and music building, a grand plaza, and a dedicated parking structure on the Richardson campus.

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