Outlook & Key Themes
Short-Term Outlook The near-term outlook for AEC M&A remains broadly positive, defined by stability rather than acceleration. Firms are entering 2026 with healthy margins, strong backlogs, and steady demand—especially in infrastructure, environmental, and energy transition markets. These fundamentals continue to provide confidence on both sides of the table. MARKET FUNDAMENTALS Momentum today is defined by focus and return. Buyers are pursuing firms that not only fit strategically, but demonstrate clear paths to value creation through profitability, recurring clients, and disciplined leadership. Sellers capable of translating operational strength into consistent returns remain in highest demand. BUYER INTERESTS & INFLUENCES Confidence on the buy-side remains high. More than 70% of firms surveyed plan to pursue an acquisition within the next one to three years, and roughly one-third say they are very likely to do so in the next 12 months. Growth trends point upward, but with more measured pacing than the surges of recent years. Buyers are focusing less on volume and more on strategic alignment, targeting firms that strengthen technical depth, regional presence, or long-term resilience. Sellers with strong leadership continuity, bac klog visibility, and differentiated expertise continue to command the most attention. ACQUISITION PLANS & TIMING Valuation sentiment is steady. Pricing remains competitive for high- performing firms, yet negotiations are increasingly disciplined as buyers seek balance between growth potential and risk. Capital remains accessible, but selectivity has become a new signal of strength.
Made with FlippingBook Annual report