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

| Nov 3, 2011

GREC Architects announces opening of the Westin Abu Dhabi Golf Resort and Spa

The hotel was designed by GREC and an international team of consultants to enhance the offerings of the Abu Dhabi Golf Club without imposing upon the dramatic landscapes of the elite golf course.

| Nov 3, 2011

Hardin Construction tops out Orlando Embassy Suites

The project began in April 2011 and is expected to open in fall 2012.

| Nov 3, 2011

2012 Pritzker Architecture Prize Ceremony to be held in China

The tradition of moving the event to world sites of architectural significance was established to emphasize that the prize is international, the laureates having been chosen from 16 different nations to date. 

| Nov 3, 2011

DMR Architects welcomes two new staff members

Siro Gonzalez joins the staff as junior graduate architect and Megan Byers joins the staff as marketing assistant.

| Nov 2, 2011

Mega deals drive 28% increase in global engineering and construction merger and acquisition value

Financial investors lead mega deal activity, China most active country in global domestic deals.

| Nov 2, 2011

Alexandria Real Estate Equities, Inc. breaks ground on Alexandria Center in Cambridge, Mass.

307,000-sf building to be house to executive offices of Biogen Idec.

| Nov 2, 2011

U.S. Capitol dome slated for restoration project

| Nov 2, 2011

CRSI’s Manual of Standard Practice now available

This resource contains information on recommended industry practices for estimating, detailing, fabricating, and placing reinforcing steel for reinforced concrete construction. 

| Nov 2, 2011

John W. Baumgarten Architect, P.C, wins AIA Long Island Chapter‘s Healthcare Award for Renovation

The two-story lobby features inlaid marble floors and wood-paneled wainscoting that pays homage to the building’s history.

jacobs logo
| Nov 2, 2011

Jacobs announces acquisition of KlingStubbins

Jacobs Engineering Group Inc. announced that it has acquired KlingStubbins. Officials did not disclose the terms of the agreement. Jacobs' acquisition of KlingStubbins, which has approximately 500 employees located in the United States and Asia, particularly enhances the Company's capabilities in design. KlingStubbins provides professional services in planning, architecture, engineering and interiors.

boombox1
boombox2

Top Articles

native1

More In Category

Urban Planning

The magic of L.A.’s Melrose Mile

Great streets are generally not initially curated or willed into being. Rather, they emerge organically from unintentional synergies of commercial, business, cultural and economic drivers. L.A.’s Melrose Avenue is a prime example. 

Curtain Wall

7 steps to investigating curtain wall leaks

It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus. 

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