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OPINION
AEC M&A activity heats up
T he AEC industry came out swinging in the first quarter of 2025. From architecture to environmental consulting, firms across the board have been busy making deals: big ones, strategic ones, and a whole lot of them. If the start of the year is any indication, we’re in for a very active 2025. The first quarter of 2025 saw big moves, bold strategies, and a clear shift toward specialization.
Tracey Eaves
So, what’s driving all this movement? In a nutshell: firms are looking to grow smarter, not just bigger. They’re after new geographies, new capabilities, and in many cases, very specific expertise that sets them apart in a competitive market. Let’s break it down. CIVIL ENGINEERING IS WHERE THE ACTION IS. If there’s one clear takeaway from Q1, it’s this: civil engineering firms are hot commodities. They topped the list when it came to acquisitions this quarter. Why? Because infrastructure is booming. Whether it’s roads, water systems, or utilities, civil engineering is the backbone of so many projects in motion right now. Just look at LJA Engineering, which picked up Florida- based Peters and Yaffee to beef up its traffic and transportation design services. Or CPH Consulting, which expanded its water and wastewater capabilities with the acquisition of Mittauer & Associates. These aren’t just regional plays. They’re strategic bets on where the work is heading. Architecture firms weren’t far behind, especially those with a strong portfolio in sustainability, restoration, or urban planning. The deals here show that design is
still a big priority, especially as clients look for spaces that are both beautiful and future-ready. U.S. AND CANADA: THE M&A HOT ZONES. When it comes to where the deals are happening, the U.S. is leading the pack. States like Texas, California, Florida, and New York saw a flurry of activity. These regions already have strong pipelines of public and private sector projects, so it makes sense that firms want to double down there. Canada was a close second, with a ton of action in cities like Toronto, Calgary, and Montreal. The Canadian deals were a mix of engineering and architecture, reflecting a balanced push into both infrastructure and design-forward development. And don’t count Europe out. Firms from the U.K., Germany, Denmark, and the Netherlands made some smart cross-border plays, often targeting niche capabilities or entry points into the North American market. Global reach is clearly becoming more important.
Will Swearingen
See TRACEY EAVES & WILL SWEARINGEN, page 4
THE ZWEIG LETTER APRIL 7, 2025, ISSUE 1580
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