flexiblefullpage
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
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. 

Related Stories

| Oct 4, 2013

Sydney to get world's tallest 'living' façade

The One Central Park Tower development consists of two, 380-foot-tall towers covered in a series of living walls and vertical gardens that will extend the full height of the buildings. 

| Oct 4, 2013

Nifty video shows planned development of La Sagrada Familia basilica

After 144 years, construction on Gaudi's iconic Barcelona edifice is picking up speed, with a projected end date of 2026. 

| Oct 4, 2013

Mack Urban, AECOM acquire six acres for development in LA's South Park district

Mack Urban and AECOM Capital, the investment fund of AECOM Technology Corporation (NYSE: ACM), have acquired six acres of land in downtown Los Angeles’ South Park district located in the central business district (CBD). 

| Oct 4, 2013

CRB opens Atlanta office

Georgia’s status as a burgeoning hub for the life sciences industry has fueled CRB’s decision to open an office in Atlanta to better serve its clients in the market. CRB is a leading provider of engineering, design and construction services for customers in the biotech, pharmaceutical and life sciences industries. 

| Sep 27, 2013

NYC releases first year-to-year energy performance data on commercial properties

A new report provides information on energy performance of New York City's largest buildings (mostly commercial, multi-family residential). It provides an analysis of 2011 data from city-required energy “benchmarking”—or the tracking and comparison of energy performance—in more than 24,000 buildings that are over 50,000 square feet.

| Sep 27, 2013

ASHRAE/IES publish first standard focused on commissioning process

ANSI/ASHRAE/IES Standard 202, Commissioning Process for Buildings and Systems, identifies the minimum acceptable commissioning process for buildings and systems as described in ASHRAE’s Guideline 0-2005, The Commissioning Process. Standard 202 is ASHRAE’s first standard focused on the commissioning process.

| Sep 26, 2013

6 ways to maximize home-field advantage in sports venue design

Home-field advantage can play a significant role in game outcomes. Here are ways AEC firms can help create the conditions that draw big crowds, energize the home team to perform better, and disrupt visiting players.

| Sep 26, 2013

Literature review affirms benefits of daylighting, architectural glazing

The use of glass as a building material positively impacts learning, healing, productivity and well-being, according to a white paper published by Guardian Industries and the University of Michigan Taubman College of Architecture and Urban Planning. The findings highlight the significant influence daylighting and outside views have on employees, workers, students, consumers and patients.

| Sep 26, 2013

Mobilizing your job site to achieve a paperless project: fact or fiction?

True mobility in the field has rapidly evolved from lock-box kiosks on each floor to laptops on rolling carts to tablets and iPads loaded with drawings sets stored in the cloud. And WiFi-ready job sites have gone from “nice to have” to “must have” status in just a little over a year.

| Sep 26, 2013

Leading in the face of change

As AEC firms navigate toward an uncertain future, the most effective leaders are those who eagerly adapt to change. Here are three attitudes that drive leaders who are of most value to their firms.

boombox1
boombox2
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