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BUSINESS NEWS MARCH CONSTRUCTION EASES BACK ONE PERCENT: ELECTRIC UTILITIES AND GAS PLANTS RETREAT, NONRESIDENTIAL BUILDING CLIMBS SHARPLY At a seasonally adjusted annual rate of $660.5 billion, new construction starts in March receded 1 percent from February’s pace, according to Dodge Data & Analytics. Total construction starts had jumped 13 percent in February, led by a huge gain for the electric utility and gas plant category. While the dollar amount of electric utility and gas plant starts fell considerably in March, accompanied by a pullback for public works, the latest month featured a substantial increase for nonresidential building as this sector is providing more evidence that it’s regaining upward momentum. In addition, residential building in March registered moderate growth, helped by the continued strength for multifamily housing. During the first three months of 2016, total construction starts on an unadjusted basis were $141.7 billion, down 10% from the same period a year ago that included the start of several massive power plants and liquefied natural gas export terminals. If the volatile electric utility and gas plant category is excluded, total construction starts on a seasonally adjusted basis in March would be up 4 percent from February, while the year-to-date comparison on an unadjusted basis would show just a modest 4 percent decline. The March data produced a reading of 140 for the Dodge Index (2000=100), compared to a revised 142 for February. Both February and March came in higher than the sluggish 126 average for the Dodge Index during the previous seven months. “While March construction activity was down slightly from February, it stayed above the lackluster performance witnessed during the second half of last year that continued through January,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “What’s noteworthy about the March report is the renewed strength shown by nonresidential building, and in particular its institutional building segment. Nonresidential building had settled

was a discussion of all of their major technology and equipment investments over the last few years, from how they financed the purchases, to how they were using those tools to generate revenue. I was blown away. That level of preparation answers a lot of questions before they are raised. I left the meeting with a better understanding of this firm’s commitment to cutting-edge technology, and confidence that this firm was ready to talk to potential buyers. These questions and examples are just a few of the initial items on the list, but they are the ones that seem to occur during every introductory conversation. Remember that the person on the other end of the phone has already looked up your firm; they know what is on the website. The key to having a great initial conversation (which leads to great deals and partnerships), is preparation. They don’t know who you are and what makes your firm worth pursuing – so take some time and be ready to tell them! JAMIE CLAIRE KISER is Zweig Group’s director of M&A services. Contact her at jkiser@zweiggroup.com. “That level of preparation answers a lot of questions before they are raised. I left the meeting with a better understanding of this firm’s commitment to cutting-edge technology, and confidence that this firm was ready to talk to potential buyers.” back 5 percent in 2015 after its 24 percent surge in 2014, reflecting not only a steep 36 percent plunge for manufacturing plant construction but also a slight 1 percent decline for institutional building. The strength shown by institutional building in March provides some indication that it’s beginning to shift back into expansion mode, helped by growth for educational facilities as well as by the start of several large transportation terminal projects. Assuming this pattern gets repeated over the course of 2016, it would be an important factor behind nonresidential building reestablishing an upward trend.”

JAMIE CLAIRE KISER, from page 11

retire after a few years is a much better answer than telling the buyer that you’re ready to retire immediately. 4)Tell me about your staff. This is the opportunity to talk about the high quality second-tier of leadership that you have developed and mentored over the last few years (because you’ve done that, right?). Buyers want to know who they can count on in the short-, medium-, and long-term to keep the business on track. Spending the conversation talking about yourself and starting every sentence with “I did this” and “I did that” raises a red flag, especially if you just told the pro- spective buyer that you’re ready to retire. Focus on the answer to the question from the buyer’s perspective – what can you say about your people that will give the buyer confidence in the ability of your firm to continue to perform without you there? “The key to having a great initial conversation (which leads to great deals and partnerships), is preparation.” I experienced a great example of seller preparation at a recent meeting with a prospective seller. This firm prepared a presentation for me to help me understand who they are, why they are the best, and what sets them apart. The presentation included market sectors, a few award-winning projects that they were proud of (and – I loved this detail – which of their all-star staff worked on the project other than leadership!), and their business model. An additional detail that was new to me in these types of conversations

THE ZWEIG LETTER May 23, 2016, ISSUE 1153

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