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 200 Reconstruction Architecture Firms for 2023 photo Federal House at Penn State Behrend, Brad Feinknopf
Giants 400 | Jan 3, 2024

Top 200 Reconstruction Architecture Firms for 2023

Gensler, Stantec, HDR, Corgan, and PBK Architects top BD+C's ranking of the nation's largest building reconstruction/renovation architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.

CHOC Thompson Autism Center
Designers | Jan 3, 2024

Designing better built environments for a neurodiverse world

For most of human history, design has mostly considered “typical users” who are fully able-bodied without clinical or emotional disabilities. The problem with this approach is that it offers a limited perspective on how space can positively or negatively influence someone based on their physical, mental, and sensory abilities.

Top 120 Hotel Architecture Firms for 2023 - Image by bikson walder from Pixabay
Giants 400 | Jan 2, 2024

Top 120 Hotel Architecture Firms for 2023

Gensler, WATG, HKS, DLR Group, and HBG Design top BD+C's ranking of the nation's largest hotel and resort architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. 

Image by lmaresz from Pixabay - Americans are migrating from areas of high flood risk
Resiliency | Jan 2, 2024

Americans are migrating from areas of high flood risk

Americans are abandoning areas of high flood risk in significant numbers, according to research by the First Street Foundation. Climate Abandonment Areas account for more than 818,000 Census Blocks and lost a total of 3.2 million-plus residents due to flooding from 2000 to 2020, the study found.

Image by Pexels from Pixabay - New York City will slash regulations on housing projects
MFPRO+ News | Jan 2, 2024

New York City will slash regulations on housing projects

New York City Mayor Eric Adams is expected to cut red tape to make it easier and less costly to build housing projects in the city. Adams would exempt projects with fewer than 175 units in low-density residential areas and those with fewer than 250 units in commercial, manufacturing, and medium- and high-density residential areas from environmental review. 

DBIA releases two free DEI resources for AEC firms
Contractors | Dec 22, 2023

DBIA releases two free DEI resources for AEC firms

The Design-Build Institute of America (DBIA) has released two new resources offering guidance and provisions on diversity, equity, and inclusion (DEI) on design-build projects.

Document offers guidance on heat pump deployment for multifamily housing
MFPRO+ News | Dec 22, 2023

Document offers guidance on heat pump deployment for multifamily housing

ICAST (International Center for Appropriate and Sustainable Technology) has released a resource guide to help multifamily owners and managers, policymakers, utilities, energy efficiency program implementers, and others advance the deployment of VHE heat pump HVAC and water heaters in multifamily housing.

WSP unveils scenario-planning online game
Sustainability | Dec 22, 2023

WSP unveils scenario-planning online game

WSP has released a scenario-planning online game to help organizations achieve sustainable development goals while expanding awareness about climate change.

Bridges at Flatiron in Broomfield, Colo., designed by JHP Architecture and Urban Design. Photo courtesy JHP, Top 160 Apartment and Condominium Architecture Firms for 2023
Giants 400 | Dec 20, 2023

Top 160 Apartment and Condominium Architecture Firms for 2023

Gensler, Humphreys and Partners, Solomon Cordwell Buenz, and AO top BD+C's ranking of the nation's largest apartment building and condominium architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.  

Top 90 Student Housing Architecture Firms for 2023
Giants 400 | Dec 20, 2023

Top 90 Student Housing Architecture Firms for 2023

Niles Bolton Associates, Solomon Cordwell Buenz, BKV Group, and Humphreys and Partners Architects top BD+C's ranking of the nation's largest student housing facility architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 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