flexiblefullpage

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

Menu View Full Menu
Subscribe Here
billboard
interstitial1
catfish1
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

Image by Jacqui from Pixabay
Government Buildings | May 10, 2024

New federal buildings must be all-electric by 2030

A new Biden Administration rule bans the use of fossil fuels in new federal buildings beginning in 2030. The announcement came despite longstanding opposition to the rule by the natural gas industry. 

Modern nature city
Sustainable Development | May 10, 2024

Nature as the city: Why it’s time for a new framework to guide development

NBBJ leaders Jonathan Ward and Margaret Montgomery explore five inspirational ideas they are actively integrating into projects to ensure more healthy, natural cities.

Portland's Timberview VIII mass timber multifamily development will offer more than 100 affordable units. Rendering: Access Architecture
Mass Timber | May 8, 2024

Portland's Timberview VIII mass timber multifamily development will offer more than 100 affordable units

An eight-story, 72,000-sf mass timber apartment building in Portland, Ore., topped out this winter and will soon offer over 100 affordable units. The structure is the tallest affordable housing mass timber building and the first Type IV-C affordable housing building in the city. 

Ivan O’Garro, AIA headshot at LEO A DALY
Architects | May 8, 2024

Ivan O’Garro, AIA joins LEO A DALY as a vice president

Integrated design firm LEO A DALY welcomes Ivan O’Garro, AIA, as a vice president and managing principal of its Atlanta studio.

World's first K-12 school to achieve both LEED for Schools Platinum and WELL Platinum - John Lewis Elementary School
K-12 Schools | May 7, 2024

World's first K-12 school to achieve both LEED for Schools Platinum and WELL Platinum

A new K-12 school in Washington, D.C., is the first school in the world to achieve both LEED for Schools Platinum and WELL Platinum, according to its architect, Perkins Eastman. The John Lewis Elementary School is also the first school in the District of Columbia designed to achieve net-zero energy (NZE). 

Hospital construction costs for 2024, Image by mspark0 from Pixabay
Healthcare Facilities | May 6, 2024

Hospital construction costs for 2024

Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.

Portland International Airport (PDX) – Portland, Oregon
Biophilic Design | May 6, 2024

The benefits of biophilic design in the built environment

Biophilic design in the built environment supports the health and wellbeing of individuals, as they spend most of their time indoors.

Affordable housing community Flat 9 at Whittier photo by Ed Wonsek
MFPRO+ Special Reports | May 6, 2024

Top 10 trends in affordable housing

Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.

Rendering courtesy AO
Retail Centers | May 3, 2024

Outside Las Vegas, two unused office buildings will be turned into an open-air retail development

In Henderson, Nev., a city roughly 15 miles southeast of Las Vegas, 100,000 sf of unused office space will be turned into an open-air retail development called The Cliff. The $30 million adaptive reuse development will convert the site’s two office buildings into a destination for retail stores, chef-driven restaurants, and community entertainment.

Image by igormattio from Pixabay
Codes and Standards | May 3, 2024

New York City considering bill to prevent building collapses

The New York City Council is considering a proposed law with the goal of preventing building collapses. The Billingsley Structural Integrity Act is a response to the collapse of 1915 Billingsley Terrace in the Bronx last December. 

boombox1
boombox2

Top Articles

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