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

Pre-applied blindside waterproofing installed prior to pouring of concrete wall. Photo courtesy Walter P Moore
Sponsored | BD+C University Course | Jan 17, 2024

Waterproofing deep foundations for new construction

This continuing education course, by Walter P Moore's Amos Chan, P.E., BECxP, CxA+BE, covers design considerations for below-grade waterproofing for new construction, the types of below-grade systems available, and specific concerns associated with waterproofing deep foundations.

The new theater at the expanded Eastwood High School in El Paso, Texas, designed by DLR Group. Photo: Michael Robinson Photography, courtesy DLR Group
Sponsored | Performing Arts Centers | Jan 17, 2024

Performance-based facilities for performing arts boost the bottom line

A look at design trends for “budget-wise” performing arts facilities reveals ways in which well-planned and well-built facilities help performers and audiences get the most out of the arts. This continuing education course is worth 1.0 AIA learning unit.

Image by sungmin cho from Pixabay - Top 130 Hospital Facility Architecture Firms for 2023
Giants 400 | Jan 15, 2024

Top 130 Hospital Facility Architecture Firms for 2023

HKS, HDR, Stantec, CannonDesign, and Page Southerland Page top BD+C's ranking of the nation's largest hospital facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.

San Francisco International Airport, T1 Expansion
Airports | Jan 15, 2024

How to keep airports functional during construction

Gensler's aviation experts share new ideas about how to make the airport construction process better moving forward.

Image by GLady from Pixabay
Adaptive Reuse | Jan 12, 2024

Office-to-residential conversions put pressure on curbside management and parking

With many office and commercial buildings being converted to residential use, two important issues—curbside management and parking—are sometimes not given their due attention. Cities need to assess how vehicle storage, bike and bus lanes, and drop-off zones in front of buildings may need to change because of office-to-residential conversions.

As demand rises for EV chargers at multifamily housing properties, options and incentives multiply - Image by A. Krebs from Pixabay
MFPRO+ News | Jan 12, 2024

As demand rises for EV chargers at multifamily housing properties, options and incentives multiply

As electric vehicle sales continue to increase, more renters are looking for apartments that offer charging options.

UC Berkeley uses shipping containers to block protestors of student housing project, Image by 2427999 from Pixabay
Student Housing | Jan 12, 2024

UC Berkeley uses shipping containers to block protestors of student housing project

The University of California at Berkeley took the drastic step of erecting a wall of shipping containers to keep protestors out of a site of a planned student housing complex. The $312 million project would provide badly needed housing at the site of People’s Park. 

Photo by Kvnga on Unsplash - Top 10 Casino Architecture Firms for 2023
Giants 400 | Jan 12, 2024

Top 10 Casino Architecture Firms for 2023

JCJ Architecture, HBG Design, Gensler, and WATG top BD+C's ranking of the nation's largest casino architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.

Happy senior women in eyeglasses looking at screen of smartphone
Senior Living Design | Jan 11, 2024

Designing for personal technology is crucial for senior living facilities

Today’s seniors are increasingly tech savvy. It isn’t enough to give senior living residents a pre-determined bundle of technology and assume that they’ll be satisfied.

Photo by Ana GG on Unsplash - Top 40 Convention Center Architecture Firms for 2023
Giants 400 | Jan 11, 2024

Top 40 Convention Center Architecture Firms for 2023

TVS, Populous, Arcadis North America, Gensler, and EUA top BD+C's ranking of the nation's largest convention center and event facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.

boombox1
boombox2

Top Articles

native1

More In Category

Warehouses

California bill would limit where distribution centers can be built

A bill that passed the California legislature would limit where distribution centers can be located and impose other rules aimed at reducing air pollution and traffic. Assembly Bill 98 would tighten building standards for new warehouses and ban heavy diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes.

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