flexiblefullpage -

HORIZONTV FEATURING BD+C: WATCH EPISODES ON DEMAND AT HORIZONTV

Menu View Full Menu
Subscribe Here
billboard - default
interstitial1 - interstitial
catfish1 - bottom
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

Rendering of modular healthcare building
Healthcare Facilities | Mar 18, 2024

A modular construction solution to the mental healthcare crisis

Maria Ionescu, Senior Medical Planner, Stantec, shares a tested solution for the overburdened emergency department: Modular hub-and-spoke design.

Image by Petra from Pixabay
Codes and Standards | Mar 18, 2024

New urban stormwater policies treat rainwater as a resource

U.S. cities are revamping how they handle stormwater to reduce flooding and capture rainfall and recharge aquifers. New policies reflect a change in mindset from treating stormwater as a nuisance to be quickly diverted away to capturing it as a resource.

Photo by Jacek Dylag on Unsplash
Plumbing | Mar 18, 2024

EPA to revise criteria for WaterSense faucets and faucet accessories

The U.S. Environmental Protection Agency (EPA) plans to revise its criteria for faucets and faucet accessories to earn the WaterSense label. The specification launched in 2007; since then, most faucets now sold in the U.S. meet or exceed the current WaterSense maximum flow rate of 1.5 gallons per minute (gpm). 

Luxury apartments in New York restore and renovate a century-old residential building
MFPRO+ New Projects | Mar 18, 2024

Luxury apartments in New York restore and renovate a century-old residential building

COOKFOX Architects has completed a luxury apartment building at 378 West End Avenue in New York City. The project restored and renovated the original residence built in 1915, while extending a new structure east on West 78th Street. 

140 Clarendon Street, Boston, former YWCA
Multifamily Housing | Mar 18, 2024

YWCA building in Boston’s Back Bay converted into 210 affordable rental apartments

Renovation of YWCA at 140 Clarendon Street will serve 111 previously unhoused families and individuals.

Garden at Benioff Children’s Hospital, Oakland, Calif.
Healthcare Facilities | Mar 17, 2024

5 criteria to optimize medical office design

Healthcare designers need to consider privacy, separate areas for practitioners, natural light, outdoor spaces, and thoughtful selection of materials for medical office buildings.

Image by StockSnap from Pixabay
Construction Costs | Mar 15, 2024

Retail center construction costs for 2024

Data from Gordian shows the most recent costs per square foot for restaurants, social clubs, one-story department stores, retail stores and movie theaters in select cities.

Architect with model of a house sitting at the desk indoors in office
Architects | Mar 15, 2024

4 ways to streamline your architectural practice

Vessel Architecture's Lindsay Straatmann highlights four habits that have helped her discover the key to mastering efficiency as an architect.

Hamdan Bin Rashid Cancer Hospital, Dubai, design by Stantec
Healthcare Facilities | Mar 15, 2024

First comprehensive cancer hospital in Dubai to host specialized multidisciplinary care

Stantec was selected to lead the design team for the Hamdan Bin Rashid Cancer Hospital, Dubai’s first integrated, comprehensive cancer hospital. Named in honor of the late Sheikh Hamdan Bin Rashid Al Maktoum, the hospital is scheduled to open to patients in 2026.

Photo by Nicholas Ismael Martinez on Unsplash
Codes and Standards | Mar 15, 2024

Technical brief addresses the impact of construction-generated moisture on commercial roofing systems

A new technical brief from SPRI, the trade association representing the manufacturers of single-ply roofing systems and related component materials, addresses construction-generated moisture and its impact on commercial roofing systems.

boombox1 - default
boombox2 -

Top Articles

native1 -

More In Category

AEC Tech

Lack of organizational readiness is biggest hurdle to artificial intelligence adoption

Managers of companies in the industrial sector, including construction, have bought the hype of artificial intelligence (AI) as a transformative technology, but their organizations are not ready to realize its promise, according to research from IFS, a global cloud enterprise software company. An IFS survey of 1,700 senior decision-makers found that 84% of executives anticipate massive organizational benefits from AI. 

Codes and Standards

Updated document details methods of testing fenestration for exterior walls

The Fenestration and Glazing Industry Alliance (FGIA) updated a document serving a recommended practice for determining test methodology for laboratory and field testing of exterior wall systems. The document pertains to products covered by an AAMA standard such as curtain walls, storefronts, window walls, and sloped glazing. AAMA 501-24, Methods of Test for Exterior Walls was last updated in 2015. 

MFPRO+ News

World’s largest 3D printer could create entire neighborhoods

The University of Maine recently unveiled the world’s largest 3D printer said to be able to create entire neighborhoods. The machine is four times larger than a preceding model that was first tested in 2019. The older model was used to create a 600 sf single-family home made of recyclable wood fiber and bio-resin materials.

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