2025 AEC M&A Outlook Report
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peak activity, but underlying demand will remain strong and sustained. Buyers and sellers alike are expected to place increasing emphasis on strategic alignment, leadership continuity, and cultural cohesion rather than purely expansionary goals. As the market evolves, M&A will continue to serve as both a succession solution and a strategic growth tool. This reflects an industry that is no longer consolidating out of necessity, but out of intention and design. Long-Term Outlook Looking five to ten years ahead, the AEC M&A landscape is expected to undergo deeper structural transformation rather than a slowdown. The volume of transactions will likely stabilize, but the drivers of consolidation will increasingly shift from short-term opportunity to long-term strategy—anchored in leadership transition, technology adoption, and capital evolution. DEFINING LONG-TERM TRENDS Long-term consolidation will likely be characterized less by volume and more by integration and specialization. Buyers will pursue firms that enhance sector expertise, digital capability, and geographic coverage, producing fewer, but larger, multidisciplinary platforms capable of competing at national and global scales. THE REALITIES OF TIME Demographics remain the defining long-term force. As baby boomer and early Gen X owners continue to retire, ownership transition will ensure a steady flow of sell-side opportunities. More than 60% of principals over the age of 60 expect to retire or reduce ownership stakes by 2030. This transition will keep the steady supply of quality sellers healthy, even as buyer selectivity grows. 11
11 ”Retirement.” Zweig Group’s 2025 Principals, Partners, and Owners Report . Page 141.
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