AEC Mergers & Acquisitions Up in 2011, Expected to Surge in 2012

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The pace of both domestic and global AEC consolidation increased in 2011— reflecting greater overall confidence in the industry on the part of buyers and investors, according to Morrissey Goodale LLC.

Morrissey Goodale recently tracked 171 domestic M&A deals, representing a 12.5% increase over 2010 and a return to levels not seen since 2007. “We attribute this to continued confidence on the part of institutional investors and savvy buyers who see the industry fundamentals as stabilizing and the long-term trends as encouraging,” says Mike Cauley, Principal Consultant. “Specifically, they anticipate greater clarity around connecting massive domestic infrastructure development and rehabilitation needs with a public-private financing model.”

Given the continuing needs of baby-boomer owners to free up their investments in their firms, combined with the outlook for a continuing ultra-competitive environment for smaller firms, Morrissey Goodale anticipates the pace of domestic M&A activity in the industry to continue to rebound, yielding between 190 and 210 deals in 2012— an increase of between 11% and 23% over 2011. Additionally, Morrissey Goodale projects that approximately 20 of the ENR Top 500 Design Firms will be acquired this year and/or merged with other firms— compared to the 14 ENR Top 500 Design Firms that were acquired and/or merged with other firms in 2011.

A full listing of all AEC M&A transactions recorded from 2007 through 2011 can be found at


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Mike Cauley
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