AEC Mergers and Acquistions Continue at Record Pace
This year is on its way to a record level of AEC industry consolidation, according to a strategy and research firm that tracks merger and acquisition activity globally.
This year is on its way to a record level of AEC industry consolidation, according to strategy and research firm Morrissey Goodale LLC , Newton, Mass.
“The industry is on pace to hit our original forecast of 200 deals for 2007.led ownership transition plans, and concerns about the viability and competitive advantage of employee ownership—are still in place and speak to continued robust activity through 2008.”
According to Morrissey, year-to-date consolidation in the industry is characterized by the following trends:
Strong activity by public firms: Over one fifth of the deals this year involve a buyer or seller that is publicly traded.
Globalization: firms making deals in the U.S. and thirteen transactions had no U.S firm involvement. Canadian, Australian, and New Zealand firms have been particularly active in the first half of the year. “The U.S market continues to be an attractive one for Canadian and European firms’, says Morrissey. “However, we are seeing more and more action and interest in emerging markets. The risk is greater, but so are the projected returns.”
National growth and diversity: tion for a firm faster and with less risk than cold-starting an office or transferring a senior staffer out-of-state to grow a business from the ground up.”
A full listing of all transactions recorded in 2007 can be found on the AEC M&A Monitor at the firm’s website www.morrisseygoodale.com .