Since it was founded in 2010, N|V|5 Global, a publicly owned international engineering services provider based in Hollywood Fla., has acquired 25 companies, five of them in 2017 alone, including, most recently, Boston-based Richard D. Kimble Co., Inc. (RDK Engineers), a 120-year-old MEP engineering and design firm with 185 employees working out of five East Coast offices.
Speaking by phone from the Red Rock Resort in the Summerlin, Nev., master planned community, where N|V|5 Global was holding its annual shareholders meeting, Dickerson Wright, its Chairman and CEO, told BD+C that the addition of RDK Engineers “opens up the Northeast for us,” and strengthens N|V|5’s MEP practice.
Aside from the RDK deal, N|V|5’s acquisitions this year have included H&K, a $6 million geotechnical engineering firm in Northern California; Lochrane, a $6.5 million civil engineering firm in Orlando, Fla.; and Energenz, a $2 million international energy services company based in Irvine, Calif. Last October, NV5 bought JBA Consulting Engineers.
In its first quarter ended April 1, N|V|5’s revenue increased by 42.7% to $64.1 million, and net income grew by 10.4% to $2.27 million.
N|V|5 Global has been growing through acquisition since it launched eight years ago. It places a premium on keeping the employees of the companies it purchases in place, and making sure the acquisition is adding value to the firm. Image: N|V|5 Global
N|V|5 paid for its acquisition of RDK Engineers with a combination of cash and stock. Wright said that it’s typical for his company to pay 50% of a deal’s value in cash.
N|V|5 focuses on construction quality assurance, infrastructure, engineering and support services, energy, program management, and environmental solutions. Over the years, the firm has developed a process to determine whether another business would be a good fit through acquisition. Its criteria, explained Wright, revolve around added value, scalability, IT synchronicity, and single branding.
Perhaps most important, a business’s management has to be completely on board with the merger. Wright pointed out that there are 145,000 engineering firms in North America alone, most of which are private companies. This fragmentation has turned the engineering sector into a revolving door that has eroded any sense of loyalty and continuity between employer and employee.
As part of its acquisition strategy, N|V|R uses a carrot and stick approach to keep valued employees from walking out the door: It gets the managements of the companies it buys to sign employee agreements, in exchange for restricted NV5 stock they would receive after four years of service. Twenty-three of RDK’s managers signed that agreement.
“I am a big believer in partners and a big believer in shareholders; that’s why we’re public,” said Wright.
Christopher Cummings, PE, LEED AP, RDK’s CEO, said he believed that N|V|5 shared RDK’s “priority of providing innovative solutions to our clients through practical ingenuity, efficiency, and quality engineering in every project.”
Wright observed that a lot of mergers and acquisitions fail because too many companies get caught up in completing the deal without thinking through possible cultural collisions. “You’re crossing an emotional bridge [when two companies merge] and often times people aren’t listening to things that end up being problems,” such as allowing the acquired company to operate with the same autonomy or brand it had as an independent.
N|V|5, which has 2,300 employees and 102 offices, continues to look for companies that could be strategic fits. Wright said he sees “phenomenal opportunities” in Texas (where N|V|5 already has offices in Dallas and Austin). “But I don’t want to go in on a company without a solid foundation.”
He said his firm “loves” water-related projects, although he acknowledges that acquisition costs in that sector are high. N|V|5 is also interested in getting deeper into environmental projects, even though they have “a high barrier of entry,” said Wright.
N|V|5 operates four offices in Asia. But international expansion is less likely. “Only if our clients bring us there,” said Wright. For example, it just completed a liquefied natural gas processing plant in Angola for Bechtel Energy, for which N|V|5 provided quality control and energy services.
N|V|5 Global has provided MEP engineering services for a number of MGM-owned properties, including MGM Cotai in Macau. N|V|5's chairman, Dick Wright, said his company's international growth will be client driven. Image: N|V|5 Global
Related Stories
MFPRO+ New Projects | Nov 21, 2023
An 'eco-obsessed' multifamily housing project takes advantage of downtown Austin’s small lots
In downtown Austin, Tex., architecture firm McKinney York says it built Capitol Quarters to be “eco-obsessed, not just eco-minded.” With airtight walls, better insulation, and super-efficient VRF (variable refrigerant flow) systems, Capitol Quarters uses 30% less energy than other living spaces in Austin, according to a statement from McKinney York.
MFPRO+ News | Nov 21, 2023
California building electrification laws could prompt more evictions and rent increases
California laws requiring apartment owners to ditch appliances that use fossil fuels could prompt more evictions and rent increases in the state, according to a report from the nonprofit Strategic Actions for a Just Economy. The law could spur more evictions if landlords undertake major renovations to comply with the electrification rule.
Codes and Standards | Nov 21, 2023
Austin becomes largest U.S. city to waive minimum parking requirements
Austin, Texas recently became the largest city in the United States to stop requiring new developments to set a minimum amount of parking. The Austin City Council voted 8-2 earlier this month to eliminate parking requirements in an effort to fight climate change and spur more housing construction as Texas’s capitol grapples with a housing affordability crisis.
MFPRO+ News | Nov 21, 2023
Underused strip malls offer great potential for conversions to residential use
Replacing moribund strip malls with multifamily housing could make a notable dent in the housing shortage and revitalize under-used properties across the country, according to a report from housing nonprofit Enterprise Community Partners.
Giants 400 | Nov 16, 2023
Top 70 Science + Technology Facility Engineering Firms for 2023
Jacobs, Fluor, SSOE, Tetra Tech, and Affiliated Engineers head BD+C's ranking of the nation's largest science and technology (S+T) facility engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking factors revenue from all science and technology (S+T) buildings work, including laboratories, research buildings, technology/innovation buildings, pharmaceutical production facilities, and semiconductor production facilities.
Retail Centers | Nov 15, 2023
Should retail developers avoid high crime areas?
For retailers resolute to operating in high crime areas, design elements exist to mitigate losses and potentially deter criminal behavior.
MFPRO+ News | Nov 15, 2023
Average U.S multifamily rents drop $3 to $1,718 in October 2023: Yardi Matrix
Multifamily fundamentals continued to soften and impact rents last month, according to the latest Yardi Matrix National Multifamily Report. The average U.S. asking rent dropped $3 to $1,718 in October, with year-over-year growth moderating to 0.4%, down 40 basis points from September. Occupancy slid to 94.9%, marking the first decline in four months.
Engineers | Nov 15, 2023
SSOE Group acquires Integrated Engineering Services (IES)
SSOE Group, an internationally ranked architecture and engineering firm, is delighted to announce the successful acquisition of Santa Clara, California-based Integrated Engineering Services (IES), effective October 13, 2023. This strategic move marks a significant step forward for both organizations, ushering in a new era of expanded capabilities and enhanced service offerings for our valued clients.
MFPRO+ Special Reports | Nov 14, 2023
Register today! Key trends in the multifamily housing market for 2024 - BD+C Live Webinar
Join the BD+C and Multifamily Pro+ editorial team for this live webinar on key trends and innovations in the $110 billion U.S. multifamily housing market. A trio of multifamily design and construction experts will present their latest projects, trends, innovations, and data/research on the three primary multifamily sub-sectors: rental housing, senior living, and student housing.
Giants 400 | Nov 14, 2023
Top 60 Justice Facility Engineering Firms for 2023
EXP, AECOM, IMEG, Dewberry, and Tetra Tech head BD+C's ranking of the nation's largest justice facility engineering and engineering architecture (EA) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all public safety/justice facilities buildings work, including correctional facilities, fire stations, jails, police stations, and prisons.