2025 AEC M&A Outlook Report
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Prime vs. Subcontractor Work
Source: 2025 AEC M&A Outlook Survey, Zweig Group and Stambaugh Ness
Results from the 2025 Valuation Survey indicate that public-sector work accounts for nearly 60% of total revenue for the median firm, with private clients contributing roughly 30% and international clients representing the remaining 10%. Firms with higher public exposure also report more stable backlog pipelines and stronger profitability, reflected in higher valuation multiples. By contrast, firms with a greater share of private-sector work exhibit revenue volatility and tighter profit margins in down cycles. These firms are more sensitive to shifts in financing conditions and real estate markets, particularly in commercial development and corporate interiors sectors.
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