2025 AEC M&A Outlook Report
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PROCESS & VALUE PROTECTION Because cultural fit and management transition consistently rank as the two largest concerns for sellers, the deal process itself has become a major determinant of realized value. Formal preparation, particularly highlighting the next leadership tier and documenting integration readiness, helps protect both firm value and culture. Process discipline is increasingly viewed as the ultimate risk-management tool. VALUATION SECTOR & GEOGRAPHIC TRENDS Valuation strength varies widely depending on a firm’s market and service. High-growth areas like environmental consulting, energy transition, and infrastructure development continue to draw strong pricing thanks to steady federal investment and rising private-sector demand. Civil engineering and surveying also remain highly attractive. These disciplines sit upstream of most project types, often opening the door for broader engagements. They’re profitable, consistently needed, and—especially in the case of surveying—challenging to scale, which supports stronger valuations across many markets. Regionally, the Southeast and Texas continue to lead with active pipelines and healthy pricing, fueled by population growth, energy expansion, and supportive business environments. The Midwest and Northeast show solid but steadier activity as economic momentum moves at a slower pace. WHAT THE NUMBERS SAY These findings show that valuation is about more than arithmetic. The numbers set the range, but narrative determines the outcome. Firms with healthy margins, consistent backlog, and a clear story about future growth and leadership continuity consistently outperform peers with similar financial but weaker positioning. Valuation strength in today’s AEC market is earned through performance, justified through strategy, and protected through process. The firms combining all three are the ones realizing the top of the range and defining the benchmarks for the rest of the AEC industry.
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