FMI Releases 2019 M&A Trends for Engineering and Construction
FMI Corporation’s “2019 M&A Trends for Engineering and Construction” report provides an overview of key trends driving merger and acquisition activity in today’s North American engineering and construction market and highlights notable recent deals. This year’s study results indicate that M&A activity will remain strong but is likely to return to more regular levels in 2019 and beyond.
Alex Miller, managing director of FMI Capital Advisors, Inc. and author of the report, states, “Over half of all respondents said they were less likely to make an acquisition in 2019 than in 2018. This is in part due to the record level of activity in 2018, as many firms are digesting recent acquisitions and resetting their strategies in an altered competitive environment.”
Some of the report’s key findings include the following:
Nearly 60 percent of all respondents indicated that acquisitions were a part of their current strategy—down from 70 percent in the 2018 survey.
Over 75 percent of all survey respondents believe that industry valuations have risen over the past 24 months, primarily due to the increased market activity and improved performance of target companies.
Sixty-one percent of respondents said that one of their competitors had been acquired in the past three years.
Forty-six percent of respondents have contemplated acquiring a technological solution or commercializing an in-house technology solution.
Private equity activity continues to be a key driver in overall M&A activity in the E&C industry.