flexiblefullpage
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
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. 

Related Stories

| Aug 11, 2010

Florida mixed-use complex includes retail, residential

The $325 million Atlantic Plaza II lifestyle center will be built on 8.5 acres in Delray Beach, Fla. Designed by Vander Ploeg & Associates, Boca Raton, the complex will include six buildings ranging from three to five stories and have 182,000 sf of restaurant and retail space. An additional 106,000 sf of Class A office space and a residential component including 197 apartments, townhouses, ...

| Aug 11, 2010

Restoration gives new life to New Formalism icon

The $30 million upgrade, restoration, and expansion of the Mark Taper Forum in Los Angeles was completed by the team of Rios Clementi Hale Studios (architect), Harley Ellis Devereaux (executive architect/MEP), KPFF (structural engineer), and Taisei Construction (GC). Work on the Welton Becket-designed 1967 complex included an overhaul of the auditorium, lighting, and acoustics.

| Aug 11, 2010

Best AEC Firms to Work For

2006 FreemanWhite Hnedak Bobo Group McCarthy Building Companies, Inc. Shawmut Design and Construction Walter P Moore 2007 Anshen+Allen Arup Bovis Lend Lease Cannon Design Jones Lang LaSalle Perkins+Will SmithGroup SSOE, Inc. Timothy Haahs & Associates, Inc. 2008 Gilbane Building Co. HDR KJWW Engineering Consultants Lord, Aeck & Sargent Mark G.

| Aug 11, 2010

High-Performance Workplaces

Building Teams around the world are finding that the workplace is changing radically, leading owners and tenants to reinvent corporate office buildings to compete more effectively on a global scale. The good news is that this means more renovation and reconstruction work at a time when new construction has stalled to a dribble.

| Aug 11, 2010

Great Solutions: Business Management

22. Commercial Properties Repositioned for University USE Tocci Building Companies is finding success in repositioning commercial properties for university use, and it expects the trend to continue. The firm's Capital Cove project in Providence, R.I., for instance, was originally designed by Elkus Manfredi (with design continued by HDS Architects) to be a mixed-use complex with private, market-...

| Aug 11, 2010

Nurturing the Community

The best seat in the house at the new Seahawks Stadium in Seattle isn't on the 50-yard line. It's in the southeast corner, at the very top of the upper bowl. "From there you have a corner-to-corner view of the field and an inspiring grasp of the surrounding city," says Kelly Kerns, project leader with architect/engineer Ellerbe Becket, Kansas City, Mo.

| Aug 11, 2010

AIA Course: Historic Masonry — Restoration and Renovation

Historic restoration and preservation efforts are accelerating throughout the U.S., thanks in part to available tax credits, awards programs, and green building trends. While these projects entail many different building components and systems, façade restoration—as the public face of these older structures—is a key focus. Earn 1.0 AIA learning unit by taking this free course from Building Design+Construction.

| Aug 11, 2010

BIM adoption tops 80% among the nation's largest AEC firms, according to BD+C's Giants 300 survey

The nation's largest architecture, engineering, and construction companies are on the BIM bandwagon in a big way, according to Building Design+Construction's premier Top 50 BIM Adopters ranking, published as part of the 2009 Giants 300 survey. Of the 320 AEC firms that participated in Giants survey, 83% report having at least one BIM seat license in house, half have more than 30 seats, and near...

| Aug 11, 2010

World's tallest all-wood residential structure opens in London

At nine stories, the Stadthaus apartment complex in East London is the world’s tallest residential structure constructed entirely in timber and one of the tallest all-wood buildings on the planet. The tower’s structural system consists of cross-laminated timber (CLT) panels pieced together to form load-bearing walls and floors. Even the elevator and stair shafts are constructed of prefabricated CLT.

| Aug 11, 2010

Integrated Project Delivery builds a brave, new BIM world

Three-dimensional information, such as that provided by building information modeling, allows all members of the Building Team to visualize the many components of a project and how they work together. BIM and other 3D tools convey the idea and intent of the designer to the entire Building Team and lay the groundwork for integrated project delivery.

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