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

K-12 school construction costs for 2024 Photo by Taylor Flowe on Unsplash
Construction Costs | Feb 22, 2024

K-12 school construction costs for 2024

Data from Gordian breaks down the average cost per square foot for four different types of K-12 school buildings (elementary schools, junior high schools, high schools, and vocational schools) across 10 U.S. cities.

SoLé Mia, North Miami, Fla., is a luxury multifamily community with a seven-acre Crystal Lagoons pool. Photo courtesy Crystal Lagoons
MFPRO+ Special Reports | Feb 22, 2024

Crystal Lagoons: A deep dive into real estate's most extreme guest amenity

These year-round, manmade, crystal clear blue lagoons offer a groundbreaking technology with immense potential to redefine the concept of water amenities. However, navigating regulatory challenges and ensuring long-term sustainability are crucial to success with Crystal Lagoons.

AIA Architecture Billings Index, January 2024
Architects | Feb 21, 2024

Architecture Billings Index remains in 'declining billings' state in January 2024

Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.

Virginia Commonwealth University College of Health Professions building
University Buildings | Feb 21, 2024

University design to help meet the demand for health professionals

Virginia Commonwealth University is a Page client, and the Dean of the College of Health Professions took time to talk about a pressing healthcare industry need that schools—and architects—can help address.

Skanska USA is exploring how AI can intersect with and enhance jobsite automation. Shown here are a Skanska worker using NavViz’s scanner to create digital models.
AEC Tech | Feb 20, 2024

AI for construction: What kind of tool can artificial intelligence become for AEC teams?

Avoiding the hype and gathering good data are half the battle toward making artificial intelligence tools useful for performing design, operational, and jobsite tasks.

SSOE Group is striving for a more diverse workforce
Engineers | Feb 20, 2024

An engineering firm traces its DEI journey

Top-to-bottom buy-in has been a key factor in SSOE Group’s efforts to become more diverse, equitable, and inclusive in its hiring, mentoring, and benefits.

Construction method featuring LEGO-like bricks wins global innovation award
Building Tech | Feb 20, 2024

Construction method featuring LEGO-like bricks wins global innovation award

A new construction method featuring LEGO-like bricks made from a renewable composite material took first place for building innovations at the 2024 JEC Composites Innovation Awards in Paris, France.

AISC, AIA release second part of design assist guidelines for the structural steel industry
Codes and Standards | Feb 20, 2024

AISC, AIA release second part of design assist guidelines for the structural steel industry

The American Institute of Steel Construction and AIA Contract Documents have released the second part of a document intended to provide guidance for three common collaboration strategies.

The 656-unit Academe at 198 is the newest addition to UC Law’s Academic Village. Photo: Bruce Damonte, courtesy Perkins&Will
Student Housing | Feb 19, 2024

UC Law San Francisco’s newest building provides student housing at below-market rental rates

Located in San Francisco’s Tenderloin and Civic Center neighborhoods, UC Law SF’s newest building helps address the city’s housing crisis by providing student housing at below-market rental rates. The $282 million, 365,000-sf facility at 198 McAllister Street enables students to live on campus while also helping to regenerate the neighborhood.

UL Solutions launches indoor environmental quality verification designation for building construction projects. Image by 652234 from Pixabay
MFPRO+ News | Feb 15, 2024

UL Solutions launches indoor environmental quality verification designation for building construction projects

UL Solutions recently launched UL Verified Healthy Building Mark for New Construction, an indoor environmental quality verification designation for building construction projects.

boombox1 - default
boombox2 -

Top Articles

native1 -

More In Category

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