RALEIGH, N.C. – April 11, 2019.
FMI Corporation, the leading provider of management consulting and investment banking services to engineering and construction, infrastructure and the built environment, is pleased to announce the release of its “2019 M&A Trends for Engineering and Construction” report. The publication provides an overview of key trends driving merger and acquisition activity in today’s North American engineering and construction market. 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, a managing director with FMI Capital Advisors, Inc. and author of the report, states, “In 2018, we saw a record level of M&A activity in the E&C sector and a 25 percent increase over 2017 activity. In 2019, we expect M&A activity to remain strong but likely to return to historic levels. The key drivers of acquisition activity remain, including demographic succession needs and the desire for buyers to grow and diversify their business, expand service and capabilities, and address the shortage of qualified labor in the industry.
Some of the report’s key findings include:
- Nearly 60% of all respondents indicated that acquisitions were a part of their current strategy.
- Over 75% 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.
- 61% of survey respondents said that one of their competitors had been acquired in the past three years.
- 66% of all respondents said that one of their competitors had made an acquisition in the past three years.
- 46% of respondents have contemplated acquiring a technological solution or commercializing an in-house technology solution.
To access FMI’s “2019 M&A Trends for Engineering and Construction” report, please click here.
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