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The general consensus in the A/E/P industry is that M&A is on the rise. But not long ago, that wasn’t the case. According to Zweig Group’s 2015 Merger and Acquisition Survey of A/E/P and Environmental Consulting Firms , the market was gutted by the recession. In 2006, before the downturn, 73 percent of firms said they would con- sider acquiring another firm. But the market bottomed out in 2012, when just 30 percent of firms expressed interest in acquiring another firm. By 2015, however, the trend was back on an upward trajectory, as 42 percent of firms surveyed said they would consider buying another firm. Looking ahead, 68 percent of firms said their business plan includes a merger or acquisition within the next five years, according to the Zweig survey. Based on the results of the study, structural engineering firms will be prime targets for acquisition. Such was the case for TLC. “With the downturn, structural was hit harder than MEP, as we had been able to maintain a stronger core in MEP focusing on infrastructure and other non-development work,” Sheerin says. “With the market strength- ening and development work moving forward, our structural capacity didn’t match our firm’s MEP capacity, so we are really helped by bringing the Allan and Conrad team on board.” Allan and Conrad staff have moved from their old office in Winter Park to the TLC headquarters in Orlando. Steve Shelt, former Allan and Conrad VP, is now a TLC principal and manager of TLC’s Orlando-based structural engineering group. Robert DeLany and Carl Jenne, former shareholders in Allan and Conrad, are now shareholders in TLC. The Florida construction market is among the hottest in the nation, mak- ing the stakes high for TLC. Just in Miami, where the firm has an office, commercial and multifamily construction starts came in at $6.3 billion last year, making it the second largest market behind New York, accord- ing to Dodge Data & Analytics research. In Dallas, where TLC also has an office, development is booming all across the northern corridor, racking up $6 billion in construction starts last year. And in TLC’s own backyard is Walt Disney World and Universal Orlando. “With the market strengthening and development work moving forward, our structural capacity didn’t match our firm’s MEP capacity, so we are really helped by bringing the Allan and Conrad team on board.” Looking ahead, 68 percent of firms said their business plan includes a merger or acquisition within the next five years, according to the Zweig survey. Based on the results of the study, structural engineering firms will be prime targets for acquisition.

FOR YOUR BOOKSHELF

WANT MORE M&A DATA? Zweig Group’s 2015 Merg- ers & Acquisitions Survey collects data on the fre- quency of ownership shifts, how they’re conducted, and consolidation trends in the industry. If you’re considering selling your firm, use the Merger & Acquisition Survey to: ❚ ❚ Find out what today’s buyers are looking for – who, where, and what

❚ ❚ See what kind of price you can expect for your firm ❚ ❚ Learn what’s motivating other sellers like yourself, and what buyers are hoping to achieve through an acquisition If you’re considering buying another firm, use the Merger & Acquisition Survey to: ❚ ❚ Learn how long it takes to buy or sell a firm, from start to finish ❚ ❚ Find out how many firms are satisfied with the acquisitions they’ve made If you’ve recently completed a merger or acquisition deal, use the Merger & Acquisition Survey to: ❚ ❚ Learn how the price you paid or the amount you received compares with other similar deals ❚ ❚ Find out if your peers or competitors also recently completed any transactions ❚ ❚ Compare the success of your firm’s transactions with other firms’ successful (or not successful) transactions With all the changes the A/E industry has faced in recent years, more firms than ever are including a merger or acquisition in their strategic plan. If you think a merger or acquisition may be in your future – and even if it’s not currently in your firm’s plan – you’ll want to see the results in the 2015 Merger & Acquisition Survey . It’s the most comprehensive report available on the real buying, selling, and merging activity in the AEC industry today. SHOP SMARTER! Zweig Group’s 2016 Mergers & Ac- quisitions Surve y is now open for participation! By participating in the 2016 Mergers & Acquisitions Survey , you’ll be contributing to the most up-to-date data on mergers and acquisitions, plus you’ll receive a discount of 65 percent off the published survey or any other current Zweig Group survey. For more in- formation, visit zweiggroup.com/survey.php or email research@zweiggroup.com.

See TLC, page 8

rch 21, 2016, ISSUE 1144

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