Why Companies are Considering Acquisitions:
Mergers and acquisitions in the built environment are on fire. The market is very active if you are thinking about selling your company.
Some of the most common reasons and factors considered by those wanting to make acquisitions are:
- Access to deeper expertise/ markets/clients.
- Broader geographic reach and to create a presence in a new market.
- Access to people and talent pools in new and existing markets.
- Stronger portfolio and resumes in specific markets, which means greater competitiveness.
- Elimination of competitors.
Momentum for mergers and acquisitions in the built environment are continuing and will continue to grow
There currently is an urgency of upgrading U.S. bridges, highways, roads, ports, mass transit and wastewater treatment systems and more. The appetite of design, engineering and construction firms for mergers and acquisitions is growing because of their desire to position them for these infrastructure related projects.
The impact on infrastructure acquisition activity, isn’t the only driver for acquisitions. Buyers continue to seek to expand their capabilities in many areas and offerings while positioning themselves in attractive geographic markets.
Companies in the built environment have strategically acquired people and talent, broadened their geographical presence and markets as well as expanded and diversified their service offerings all while keeping pace with competitors and in some cases eliminating them.
Large billion-dollar projects in the power, refinery, transit and mixed use sectors are requiring a broader variety of talent and technical expertise.
As noted above, in the past, the shortage of qualified labor has hampered the ability of design and construction companies to take on projects of all sizes which has prompted them to acquire to achieve growth.
The war for talent is clear due to higher volumes of work. The demand for talent in the built environment is at its highest point.
Acquisitions are helping companies to diversify core businesses, expand into new markets and to gain leverage through larger, consolidated platforms.
In addition, companies owned and operated by aging baby boomers are looking at mergers and acquisitions as an exit strategy.
Demographic succession and transition needs, combined with increased buyer interest and strategies are resulting in a robust mergers and acquisitions market for companies in the built environment.