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

the 1.34 million-sf Proctor & Gamble warehouse/distribution facility, on 110 acres
Industrial Facilities | Nov 16, 2022

Industrial building sector construction, while healthy, might also be flattening

For all the hoopla about the ecommerce boom and “last mile” order fulfillment driving demand for more warehouse and manufacturing space, construction of industrial buildings actually declined over the past five years, albeit marginally by 2.1% to $27.3 billion in 2022, according to estimates by IBIS World. Still, construction in this sector remains buzzy.

Terrace House condominiums, Vancouver, B.C., mass timber residences designed by Shigeru Ban Architects.
Wood | Nov 16, 2022

5 steps to using mass timber in multifamily housing

A design-assist approach can provide the most effective delivery method for multifamily housing projects using mass timber as the primary building element.

Top 55 Airport Terminal Architecture Firms for 2022 San Francisco International Airport (SFO), T1 Expansion Jason O’Rear Photography, courtesy Gensler
Giants 400 | Nov 14, 2022

Top 55 Airport Terminal Architecture + AE Firms for 2022

Gensler, PGAL, Corgan, and HOK top the ranking of the nation's largest airport terminal architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

HITT is using Hilti’s Jaibot for repetitive tasks such as drilling anchors
Giants 400 | Nov 14, 2022

4 emerging trends from BD+C's 2022 Giants 400 Report

Regenerative design, cognitive health, and jobsite robotics highlight the top trends from the 519 design and construction firms that participated in BD+C's 2022 Giants 400 Report.

NREL report: Using photovoltaic modules with longer lifetimes is a better option than recycling
Green | Nov 13, 2022

NREL report: Using photovoltaic modules with longer lifetimes is a better option than recycling

A new report from the U.S. National Renewable Energy Laboratory (NREL) says PV module lifetime extensions should be prioritized over closed-loop recycling to reduce demand for new materials.

Global building emissions reached record levels in 2021
Green | Nov 13, 2022

Global building emissions reached record levels in 2021

Carbon-dioxide emissions from building construction and operations hit an all-time high in 2021, according to the most recent data compiled by the Global Alliance for Buildings and Construction.

LMN Architects designed the mass timber Michael G. Foster School of Business Founders Hall at the University of Washington
University Buildings | Nov 13, 2022

University of Washington opens mass timber business school building

Founders Hall at the University of Washington Foster School of Business, the first mass timber building at Seattle campus of Univ. of Washington, was recently completed. The 84,800-sf building creates a new hub for community, entrepreneurship, and innovation, according the project’s design architect LMN Architects.

SOM presented its “Urban Sequoias” concept (how buildings can absorb carbon) at the UN COP26 conference. Rendering © SOM | Miysis
Architects | Nov 10, 2022

What’s new at 173 architecture firms for 2022

More than 295 U.S. architecture and architecture-engineering (AE) firms participated in BD+C's 2022 Giants 400 survey. As part of the Giants survey process, participating firms are asked to describe their most impactful firm innovations and noteworthy company moves in the past 12 months. Here is a collection of the most compelling business and project innovations and business moves from the 2022 Architecture Giants.

Top 30 Data Center Architecture + AE Firms for 2022 imgix-klWUhr-wPJ8-unsplash
Giants 400 | Nov 9, 2022

Top 30 Data Center Architecture + AE Firms for 2022

HDR, Corgan, Sheehan Nagle Hartray Architects, and Gensler top the ranking of the nation's largest data center architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. 

Top 75 Sports Facility Engineering and EA Firms for 2022 chris-chow-yPgmYU1aZvE-unsplash
Giants 400 | Nov 8, 2022

Top 110 Sports Facility Architecture and AE Firms for 2022

Populous, HOK, Gensler, and Perkins and Will top the ranking of the nation's largest sports facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 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