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

Does your firm use CHAT GPT?
AEC Tech Innovation | Apr 27, 2023

Does your firm use ChatGPT?

Is your firm having success utilizing ChatGPT (or other AI chat tools) on your building projects or as part of your business operations? If so, we want to hear from you.

Recygénie - A housing complex outside Paris is touted as the world’s first fully recycled concrete building
Concrete Technology | Apr 24, 2023

A housing complex outside Paris is touted as the world’s first fully recycled concrete building

Outside Paris, Holcim, a Swiss-based provider of innovative and sustainable building solutions, and Seqens, a social housing provider in France, are partnering to build Recygénie—a 220-unit housing complex, including 70 social housing units. Holcim is calling the project the world’s first fully recycled concrete building.

Arlington County, Va., eliminates single-family-only zoning
Multifamily Housing | Apr 21, 2023

Arlington County, Va., eliminates single-family-only zoning

Arlington County, a Washington, D.C., community that took shape in the 1950s, when single-family homes were the rule in suburbia, recently became one of the first locations on the East Coast to eliminate single-family-only zoning.

March 2023 AIA Deltek Architecture Billings Index
Architects | Apr 21, 2023

Architecture billings improve slightly in March

Architecture firms reported a modest increase in March billings. This positive news was tempered by a slight decrease in new design contracts according to a new report released today from The American Institute of Architects (AIA). March was the first time since last September in which billings improved.

Top 10 green building projects for 2023, COTE Top Ten Awards, American Institute of Architects (AIA), Committee on the Environment (COTE)
Green | Apr 21, 2023

Top 10 green building projects for 2023

The Harvard University Science and Engineering Complex in Boston and the Westwood Hills Nature Center in St. Louis are among the AIA COTE Top Ten Awards honorees for 2023. 

The Paseo 48-story mixed-used residential tower in Austin, Texas, architect Pappageorge Haymes Partners
Multifamily Housing | Apr 19, 2023

Austin’s historic Rainey Street welcomes a new neighbor: a 48-story mixed-used residential tower

Austin’s historic Rainey Street is welcoming a new neighbor. The Paseo, a 48-story mixed-used residential tower, will bring 557 apartments and two levels of retail to the popular Austin entertainment district, known for houses that have been converted into bungalow bars and restaurants.

Reinforced concrete fins provide shade to the 300-meter-tall National Bank of Kuwait headquarters. Photo: Nigel Young/Foster + Partners
Design Innovation Report | Apr 19, 2023

Reinforced concrete walls and fins stiffen and shade the National Bank of Kuwait skyscraper

When the National Bank of Kuwait first conceived its new headquarters more than a decade ago, it wanted to make a statement about passive design with a soaring tower that could withstand the extreme heat of Kuwait City, the country’s desert capital. 

HDR uses artificial intelligence tools to help design iKure health clinic in India
Design Innovation Report | Apr 19, 2023

HDR uses artificial intelligence tools to help design a vital health clinic in India

Architects from HDR worked pro bono with iKure, a technology-centric healthcare provider, to build a healthcare clinic in rural India.

Meet The Hithe: A demountable building for transient startups
Design Innovation Report | Apr 19, 2023

Meet The Hithe: A demountable building for transient startups

The Hithe, near London, is designed to be demountable and reusable. The 2,153-sf building provides 12 units of business incubator workspace for startups.

Sherwin-Williams Coil Coatings releases new color forecast for architectural metal coatings
Metals | Apr 19, 2023

Sherwin-Williams Coil Coatings releases new color forecast for architectural metal coatings

The Coil Coatings division of Sherwin-Williams has released its latest color forecast, FUSE, for architectural metal coatings. The report aims to inspire architects, product manufacturers and original equipment manufacturers (OEMs) in the coil and extrusion market over the next 3-5 years and beyond.  

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