2025 AEC M&A Outlook Report
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Larger firms (500+ employees) were the most likely to report culture as a primary challenge—two-thirds said post-deal cultural integration poses the greatest risk to achieving expected synergies. Smaller firms (<50 employees) showed similar concern but expressed it in terms of values and leadership philosophy, emphasizing the need for a compatible management approach rather than matching organizational systems. THE IMPORTANCE OF OWNERSHIP TRANSITION When it comes to sell-side priorities, ownership transition and leadership continuity outrank price by a wide margin. In the 2025 AEC M&A Outlook Survey , 72% of sellers said maintaining leadership and firm legacy was more important than achieving maximum valuation. Among firms actively planning ownership transition, two-thirds reported that finding a buyer who will maintain staff and culture was their top priority. OTHER CONSIDERATIONS Operational integration remains a mid-tier challenge, ranking fourth overall among buyer concerns in the 2025 AEC M&A Outlook Survey. For large and multi-office firms, system integration and technology standardization were cited most often—particularly around merging enterprise resource planning (ERP) and HR systems. Leaders noted that systems can be fixed, but cultural damage is harder to reverse, which reinforces that execution risk is perceived as secondary to alignment risk. THE WHOLE VIEW These findings are indicative that M&A in the AEC industry is rarely about dollars and cents alone. Financing and valuation matter, but culture, leadership, and legacy determine whether a deal succeeds. Sellers are focused on continuity and stewardship, while buyers seek alignment and stability that ensure long-term success. Firms are not just looking for a buyer, they’re looking for the right partner. It’s a people-first market, where cultural cohesion is a new currency of value.
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