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OPINION
A panel discussion during the 2023 M&A Next Symposium.
A resurgence in M&A activity
The AEC industry is experiencing a resurgence in M&A activity, driven by strategic partnerships, technological integration, and geographic expansion.
T he AEC industry has seen a robust resurgence in merger and acquisition activity recently, following a dip in the latter part of last year. The number of closed transactions reflects a strong recovery and an upward trend compared to previous quarters. This renewed activity highlights the industry’s resilience and the strategic importance of acquisitions in the current market landscape.
Alec Russell, MBA
Here are some more recent trends we’ve been following this year: ■ Increasing firm size and strategic partnerships. One notable trend is the increase in the average size of firms involved in transactions. The average firm size has grown to 30 full-time equivalents, up from 25-26 FTEs in previous years. Larger firms are increasingly acquiring specialized boutique firms to enhance their expertise in niche sectors such as sustainability, environmental services, urban planning, and digital design solutions. This trend underscores the importance of strategic partnerships in strengthening market positions and expanding service offerings.
Geographic expansion and integration of technology. Geographic expansion continues to be a significant driver of M&A activity. Regional firms are consolidating to achieve national or international presence, responding to the rising demand for integrated services across diverse markets. Firms are also focusing on acquiring technological capabilities to enhance project efficiency and client outcomes. Key areas of technological integration include building information modeling, artificial intelligence, and advanced analytics.
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Sara Karstetter, MBA
■ Economic recovery and infrastructure spending. Economic recovery efforts post-pandemic and
See ALEC RUSSELL & SARA KARSTETTER , page 4
THE ZWEIG LETTER JULY 29, 2024, ISSUE 1547
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