flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

2015 was a record year for mergers and acquisitions in the AE industry [infographic]

Architects

2015 was a record year for mergers and acquisitions in the AE industry [infographic]

Consulting firm Morrissey Goodale tracked a record 234 sales of U.S.-based A/E firms last year.


By Morrissey Goodale | January 28, 2016
2015 was a record year for mergers and acquisitions in the AE industry [infographic]

Domestic deals were up, while international deals were down. Source: Morrissey Goodale

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

Healthcare Facilities | Jul 19, 2023

World’s first prefab operating room with fully automated disinfection technology opens in New York

The first prefabricated operating room in the world with fully automated disinfection technology opened recently at the University of Rochester Medicine Orthopedics Surgery Center in Henrietta, N.Y. The facility, developed in a former Sears store, features a system designed by Synergy Med, called Clean Cube, that had never been applied to an operating space before. The components of the Clean Cube operating room were custom premanufactured and then shipped to the site to be assembled.

Performing Arts Centers | Jul 18, 2023

Perelman Performing Arts Center will soon open at Ground Zero

In September, New York City will open a new performing arts center in Lower Manhattan, two decades after the master plan for Ground Zero called for a cultural component there. At a cost of $500 million, including $130 million donated by former mayor Michael R. Bloomberg, the Perelman Performing Arts Center (dubbed PAC NYC) is a 138-foot-tall cube-shaped building that glows at night.

Codes and Standards | Jul 17, 2023

Outdated federal rainfall analysis impacting infrastructure projects, flood insurance

Severe rainstorms, sometimes described as “atmospheric rivers” or “torrential thunderstorms,” are making the concept of a “1-in-100-year flood event” obsolete, according to a report from First Street Foundation, an organization focused on weather risk research. 

Multifamily Housing | Jul 13, 2023

Walkable neighborhoods encourage stronger sense of community

Adults who live in walkable neighborhoods are more likely to interact with their neighbors and have a stronger sense of community than people who live in car-dependent communities, according to a report by the Herbert Wertheim School of Public Health and Human Longevity Science at University of California San Diego.

Sustainability | Jul 13, 2023

Deep green retrofits: Updating old buildings to new sustainability standards

HOK’s David Weatherhead and Atenor’s Eoin Conroy discuss the challenges and opportunities of refurbishing old buildings to meet modern-day sustainability standards.

Contractors | Jul 13, 2023

Construction input prices remain unchanged in June, inflation slowing

Construction input prices remained unchanged in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices were also unchanged for the month.

Government Buildings | Jul 13, 2023

The recently opened U.S. Embassy in Ankara reflects U.S. values while honoring Turkish architecture

The U.S. Department of State’s Bureau of Overseas Buildings Operations (OBO) has recently opened the U.S. Embassy in Ankara, Turkey. The design by Ennead Architects aims to balance transparency and openness with security, according to a press statement. The design also seeks both to honor Turkey’s architectural traditions and to meet OBO’s goals of sustainability, resiliency, and stewardship.

Affordable Housing | Jul 12, 2023

Navigating homelessness with modular building solutions

San Francisco-based architect Chuck Bloszies, FAIA, SE, LEED AP, discusses his firm's designs for Navigation Centers, temporary housing for the homeless in northern California.

Sponsored | Fire and Life Safety | Jul 12, 2023

Fire safety considerations for cantilevered buildings [AIA course]

Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.

Building Owners | Jul 12, 2023

Building movement: When is it a problem?

As buildings age, their structural conditions can deteriorate, causing damage and safety concerns. In order to mitigate this, it’s important to engage in the regular inspection and condition assessment of buildings for diagnosis.

boombox1
boombox2
native1

More In Category


Urban Planning

Bridging the gap: How early architect involvement can revolutionize a city’s capital improvement plans

Capital Improvement Plans (CIPs) typically span three to five years and outline future city projects and their costs. While they set the stage, the design and construction of these projects often extend beyond the CIP window, leading to a disconnect between the initial budget and evolving project scope. This can result in financial shortfalls, forcing cities to cut back on critical project features.



Libraries

Reasons to reinvent the Midcentury academic library

DLR Group's Interior Design Leader Gretchen Holy, Assoc. IIDA, shares the idea that a designer's responsibility to embrace a library’s history, respect its past, and create an environment that will serve student populations for the next 100 years.

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