Driven by steady growth in the economy, domestic merger and acquisition (M&A) activity in the architecture and engineering industry hit record levels in 2015, according to Morrissey Goodale LLC, a leading business management consulting and training firm to the A/E industry. Growing uncertainty about foreign markets, however, contributed to a drop in the number
of international deals last year.
In 2015, Morrissey Goodale tracked a record 234 sales of U.S.-based A/E firms, representing a 5.4% increase over the 222 domestic deals recorded in 2014. Sales of international firms, however, dropped 8.5% from 117 in 2014 to 107 last year. When domestic and international sales are combined, overall global dealmaking in the A/E industry increased by 0.6% in 2015.
Other findings from Morrissey Goodale’s 2015 AEC M&A Year in Review include:
• Texas remained the hottest spot for M&A activity in the United States with 31 firm sales in 2015. California was a close second with 24 firm sales. Other states that saw 10 or more deals last year included Illinois, New York, North Carolina, and Florida.
• More than half (57.7%) of U.S. deals in 2015 involved a buyer and seller from different states, up from 56.2% in 2014.
• More than a fifth (20.8%) of global deals in 2015 involved publicly traded buyers, down from 28.4% in 2014.
• Mega-deals tapered somewhat last year as the median revenue of buyers decreased from $77 million in 2014 to $59 million in 2015, while the median revenue of sellers declined from $4 million to $3 million.
Morrissey Goodale Principal Consultant Neil Churman expects M&A activity in the United States will remain strong in 2016. “Continued confidence among AEC industry leaders will likely drive another busy year for domestic mergers and acquisitions,” he says. “Unease about the price of oil may give some buyers pause in pursuing energy deals, but a new transportation bill and strength in other building and infrastructure markets should lead to continued deal activity among growth-minded firms.”
Morrissey Goodale’s complete 2015 AEC M&A Year in Review and an interactive map of M&A activity in the United States can be found at www.morrisseygoodale.com.
Related Stories
| Mar 30, 2012
18 handy tablet apps for AEC professionals
Check out these helpful apps for everyday design and construction tasks. Our favorite: MagicPlan, which uses GPS to help you measure and draw a floor plan of any room.
| Mar 29, 2012
U.K.’s Manchester Airport tower constructed in nine days
Time-lapse video shows construction workers on the jobsite for 222 continuous hours.
| Mar 29, 2012
Roller shade operating system wins IF Product Design Award
Design experts in the iF jury recognized the engineering invested in the RB 500 Roller Shade, including a metal clutch with a patented construction, a durable zamac housing with polished finish, and a chain drive unit that excels in maximum operating comfort.
| Mar 29, 2012
Lehigh engineering student wins Thornton Tomasetti Foundation Awards Scholarship
The scholarship is awarded annually to a graduate student in structural engineering deemed by the department to have the potential to make an impact in the field professionally.
| Mar 29, 2012
Construction completed on Las Vegas’ newest performing arts center
The Smith Center will be the first major multi-purpose performance center in the U.S. to earn Silver LEED certification.
| Mar 29, 2012
Apartments provide permanent housing for California homeless
Gonzalez Goodale Architects designed complex to embrace community and engender sense of pride among residents.
| Mar 28, 2012
40 Under 40, the Class of 2012
Chosen from 223 applicants, these 40 young AEC professionals represent the Class of 2012 in Building Design+Construction’s “40 UNDER 40” competition.
| Mar 28, 2012
Milestone reached for LEED-certified buildings?
Total number of major global green buildings now stands at 12,000.
| Mar 28, 2012
Holden Cancer Center opens at University of Iowa Hospitals and Clinics
The new cancer clinic provides a significant increase in patient space from the prior facility, which was located in an adjacent building.
| Mar 28, 2012
Meridian Design Build Begins work on 38 acre redevelopment project
The project includes construction of a new 150,585-sf cross dock facility that will include full service truck maintenance and repair bays, a truck wash, and approximately 20,000-sf of corporate office space.