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

Keith Hempel, President, LPA Design Studios
Architects | Jun 22, 2023

Keith Hempel named President of LPA Design Studios

LPA Design Studios today announced the promotion of Chief Design Officer Keith Hempel, FAIA, to president of the 58-year-old integrated design firm. Hempel, who joined LPA in 1995, has been an integral part of the firm’s growth, helping to develop an integrated design process that has produced industry-leading results. 

A new study presses for measuring embodied carbon in industrial buildings
Industrial Facilities | Jun 20, 2023

A new study presses for measuring embodied carbon in industrial buildings

The embodied carbon (EC) intensity in core and shell industrial buildings in the U.S. averages 23.0 kilograms per sf, according to a recent analysis of 26 whole building life-cycle assessments. That means a 300,000-sf warehouse would emit 6,890 megatons of carbon over its lifespan, or the equivalent of the carbon emitted by 1,530 gas-powered cars driven for one year. Those sobering estimates come from a new benchmark study, “Embodied Carbon U.S. Industrial Real Estate.”

Can a VR-enabled AEC Firm transform building projects?
Virtual Reality | Jun 16, 2023

Can a VR-enabled AEC Firm transform building projects?

With the aid of virtual reality and 3D visualization technologies, designers, consultants, and their clients can envision a place as though the project were in a later stage.

Verizon Wireless Equipment Center. Photo courtesy Page
Mechanical Systems | Jun 16, 2023

Cogeneration: An efficient, reliable, sustainable alternative to traditional power generation

Cogeneration is more efficient than traditional power generation, reduces carbon emissions, has high returns on the initial investment, improves reliability, and offers a platform for additional renewable resources and energy storage for a facility. But what is cogeneration? And is it suitable for all facilities?

The 2999 Olympus office building near DFW Airport is now home to two Alphabet companies
Office Buildings | Jun 15, 2023

An office building near DFW Airport is now home to two Alphabet companies

A five-minute drive from the Dallas-Fort Worth International Airport, the recently built 2999 Olympus is now home to two Alphabet companies: Verily, a life sciences business, and Wing, a drone delivery company. Verily and Wing occupy the top floor (32,000 sf and 4,000 sf, respectively) of the 10-story building, located in the lakeside, work-life-play development of Cypress Waters.

Arlington, Va., transit station will support zero emissions bus fleet Rendering: Stantec
Transit Facilities | Jun 15, 2023

Arlington, Va., transit station will support zero emissions bus fleet

Arlington (Va.) Transit’s new operations and maintenance facility will support a transition of their current bus fleet to Zero Emissions Buses (ZEBs). The facility will reflect a modern industrial design with operational layouts to embrace a functional aesthetic. Intuitive entry points and wayfinding will include biophilic accents.

Arizona limits housing projects in Phoenix area over groundwater supply concerns
Urban Planning | Jun 15, 2023

Arizona limits housing projects in Phoenix area over groundwater supply concerns

Arizona will no longer grant certifications for new residential developments in Phoenix, it’s largest city, due to concerns over groundwater supply. The announcement indicates that the Phoenix area, currently the nation’s fastest-growing region in terms of population growth, will not be able to sustain its rapid growth because of limited freshwater resources. 

Alliance of Pittsburgh building owners slashes carbon emissions by 45% Image by David Mark from Pixabay
Multifamily Housing | Jun 15, 2023

Alliance of Pittsburgh building owners slashes carbon emissions by 45%

The Pittsburgh 2030 District, an alliance of property owners in the Pittsburgh area, says that it has reduced carbon emissions by 44.8% below baseline. Begun in 2012 under the guidance of the Green Building Alliance (GBA), the Pittsburgh 2030 District encompasses more than 86 million sf of space within 556 buildings. 

Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield Image by Public Co from Pixabay
Industry Research | Jun 15, 2023

Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield

Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs. 

Design considerations for behavioral health patients
Healthcare Facilities | Jun 14, 2023

Design considerations for behavioral health patients

The surrounding environment plays a huge role in the mental state of the occupants of a space, especially behavioral health patients whose perception of safety can be heightened. When patients do not feel comfortable in a space, the relationships between patients and therapists are negatively affected.

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