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WILL SWEARINGEN, from page 1
Clients across industries need help hitting carbon goals, navigating new regulations, and planning for climate resilience. And, buyers want to be the ones offering those services. Additionally, water has been a huge driver. Whether it’s wastewater treatment, stormwater management, or water resource planning, firms with deep expertise in this space are in high demand. Private equity has also played a major role. Environmental services are seen as a steady, compliance-driven investment, which makes them especially appealing in a market that can be unpredictable. We’ve also seen deals that are just as much about talent as they are about services. Firms with specialists in PFAS testing, ecological restoration, or renewable energy integration are especially attractive as those skills become more valuable year-to-year. And, finally, geography plays a major role. Clients are global, which means firms are looking for cross-border acquisitions that can support multinational needs. WHERE ARE THINGS HEADING? If the first eight months of 2025 are any indication, the environmental sector won’t be slowing down any time soon. Expect to see more private equity roll-ups as investors look to build platforms that can scale quickly across multiple geographies and service lines. Strategic buyers will also continue to chase niche expertise in areas like climate modeling, resilience planning, and carbon accounting as those capabilities are only going to become more critical. Internationally, the U.K. and Canada will likely remain major hotspots, but don’t be surprised if activity picks up in other regions where climate regulations are tightening. In the United States, places like Colorado and Florida may continue to lead, but the demand for environmental services is so widespread that deal activity will remain geographically diverse. The bottom line is this: the environmental sector is now firmly at the center of AEC deal-making, and 2025 is shaping up to be a defining year for how firms position themselves for the future. Environmental firms aren’t just along for the ride in today’s M&A market. They’re driving it. They’ve carved out a solid 20 percent of all AEC deal activity, and the momentum shows no signs of slowing. Strategic buyers see them as essential for staying competitive, private equity sees them as resilient investments, and clients see them as indispensable partners in tackling today’s toughest challenges. From Colorado to the U.K., the message is the same. Environmental expertise is in demand, and firms that have it are hot commodities. If 2025 has taught us anything so far, it’s that the environmental sector is no longer a side part of the AEC industry. It’s the headline. And with the pressures of climate change, regulatory shifts, and sustainability only increasing, expect this trend to keep building. As environmental M&A activity continues to surge, positioning your firm the right way has never been more important. Whether you’re considering buying to expand expertise and scale or selling to capture the value you’ve built, Zweig Group’s full-scale mergers and acquisitions consulting team can help you navigate the process with confidence. From sourcing exclusive opportunities to structuring, negotiating, and closing transactions, our industry-leading team blends deep AEC knowledge with decades of deal experience. We’ve built a proven track record of helping firms maximize value on the sell-side and identify the right targets on the buy-side. Learn more about Zweig Group’s M&A consulting services here . Will Swearingen is senior director of Transition consulting at Zweig Group. Contact him at wswearingen@zweiggroup.com.
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THE ZWEIG LETTER AUGUST 25, 2025, ISSUE 1599
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