Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Engineering/Construction’ Category

Engineering and Construction Industry News

By Jeff Johnson | Mar 13, 2015

Engineering and ConstructionM&A activity in the engineering and construction space has been driven in part by the desire to increase services and trades. General contractors have broadened their capabilities by acquiring specialty contractors but have also acquired design and consultancy firms as they look to offer a full-service value-added solution. A recent global example was Hill International, a global construction company, acquiring Cadogans, a U.K. engineering consultancy company, in November 2014.

The US is one of the top 10 most attractive national markets for investment in infrastructure, according to a recent report by engineering firm ARCADIS. But while the US needs to rehabilitate $3.6 trillion in existing infrastructure, government budgets are forecast to fund only about $2 trillion of this need by 2020, based on estimate by American Society of Civil Engineers. To fill the gap, investors and governments are exploring public-private partnerships (P3s) models that combine public money with private investment to fund needed infrastructure in engineering and construction.

Posted by Jeff Johnson.

Read the Entire Engineering and Construction M&A 1st Quarter Newsletter Here

Q4 Engineering & Construction Industry M&A Report

By Kim Levin | Nov 21, 2014

M&A activity in the Engineering and Construction sector for North American based target companies in Q3 2014 included 67 closed deals according to data provided by S&P Capital IQ.  This is a slight decrease in deal count since Q2 2014, where 72 transactions occurred. Total transaction value increased dramatically between Q2 and Q3 from $565 million to $6.57 billion due to the AECOM purchase of URS Corporation.

Read the Entire Engineering and Construction M&A 4th Quarter Newsletter Here


Q3 Engineering and Construction Industry M&A Report

By Kim Levin | Sep 26, 2014

EngineeringM&A activity in the Engineering and Construction sector for the United States based target companies in Q2 2014 included 54 closed deals according to data provided by S&P Capital IQ.  The ENR Construction Industry Confidence Index survey has shown that despite lower-than-expected growth in in the construction industry most executives believe the recovery will continue, and possibly accelerate, throughout the rest of the year. A minor surge in demand has been tempered by the soft pricing for materials, limiting fears from a year ago when prices spiked with the housing recovery.

Read the Entire Engineering and Construction M&A 3rd Quarter Newsletter Here

Q2 Engineering & Construction Mergers & Acquisitions Update

By Kim Levin | May 16, 2014

ENCIPG-Building ConstructionM&A activity in the Construction and Engineering sector for North American based target companies in Q1 2014 included 58 closed deals according to data provided by S&P Capital IQ. According to a report from international consulting firm PriceWaterhouseCoopers, construction and engineering M&A activity has rebounded somewhat after a number of down years following the global recession in 2008. Strategic and financial buyers with ample cash on their balance sheets are looking to broaden their offerings by acquiring a wide range of specialty contractors. Traditional strategic purchasers like EMCOR and Mastec remain active in their pursuit of a growth through acquisition strategy.

Read the Entire Engineering & Construction M&A 2nd Quarter Newsletter Here

Engineering & Construction Q1 M&A Update

By Kim Levin | Mar 07, 2014

ENCIPG-BlueprintsM&A activity in the North American Construction and Engineering sector for Q4 2013 through February 1, 2014 included 86 deals announced or closed according to data provided by S&P Capital IQ. According to data published by global consulting firm Ernst and Young, 2014 could show a significant uptick in M&A for a sector that has been negatively impacted since the global recession in 2008. According to data from the US Census Bureau, privately-owned housing units authorized by building permits in December 2013 were at a seasonally adjusted annual rate of 986,000. This is 3.0% below the revised November rate of 1,017,000, but is 4.6% above the December 2012 estimate of 943,000. Privately-owned housing starts in December were at a seasonally adjusted annual rate of 999,000. This is 9.8% below the revised November estimate of 1,107,000, but is 1.6% above the December 2012 rate of 983,000. The numbers marked the highest level of housing starts since February 2008, with permits also near a five-year high, indicating an increase in activity will likely continue through 2014.

Read the Entire Engineering & Construction 1st Quarter Newsletter Here

Engineering & Construction M&A Activity Update

By Kim Levin | Dec 27, 2013

Building ConstructionM&A activity in the North American construction and engineering sector in the third quarter of 2013 was strong with 60 deals announced or closed in the period according to data provided by S&P Capital IQ. The most active construction subsector included infrastructure-related companies focused on construction of transportation-related projects. The engineering subsector was led by surveying companies focused on industrial and infrastructure-related projects.

Read the Entire Engineering & Construction 4th Quarter Newsletter Here

Engineering & Construction M&A Update

By Kim Levin | Oct 04, 2013

ConstructionThe North American construction and engineering industries appear to be on a continued path of consolidation as larger companies fight aggressively to scoop up smaller competitors to stake claims for additional market share. Since 2010, consolidation in the construction and engineering sectors in North America has been dominated by transactions with enterprise value under $100 million. M&A in the sector has benefited from favorable financing condition and disruptive technological innovations serving North America’s oil and natural gas exploration effort.

Read the Entire Engineering & Construction 3rd Quarter Newsletter Here


CFA Advises ConArt on Sale to Private Equity Firm

By Kim Levin | Jun 01, 2009


Case Study

Situation: Twenty years following the launch of ConArt, a manufacturer and erector of precast architectural and structural components, Mr. Lyle found himself seeking to sell his company during the height of one of the country’s worst economic and construction industry downturns in recent history.

Solution: Faced with an unusually difficult engagement, CFA prepared a detailed geographic and industry sector analysis, which was effective in presenting the fact that ConArt was not suffering from the effects of the construction industry downturn. Bolstered by the in-depth report, KT Capital Partners, a private equity fund, acquired a company that is strategically located and positioned to take advantage of a vast number of growth opportunities in Southeastern United States.

CFA Advises Developer

By Peter Moore | Apr 15, 2008

Case Study

Situation: Portland, Maine is home to several colleges, yet most feature limited housing. Rockport, Maine based developer Joseph M. Cloutier saw a need for a high-end apartment complex aimed specifically at the city’s 15,000 college student population. He asked CFA to arrange financing for the 100 suite complex designed to house 400 students. Bayside Village will meet the needs of students’ busy schedules, with amenities like sheltered parking, wireless internet, a fitness room, and bicycle storage.

Solution: Corporate Finance Associates designed a multi-layered capital structure including development stage funding, construction financing, term debt, and municipal tax increment financing totaling $26mm through a combination of short term investors, private equity, and bank financing timed to meet the projects funding milestones.

CFA Advises Overland Sand & Gravel

By Jim Zipursky | Feb 15, 2008

overland nebco

Case Study

Vayden Anderson decided at 78, it was time to sell his business and retire. With no heirs interested in acquiring Overland Sand & Gravel, on the recommendation of his attorney, Anderson turned to CFA. He retained CFA to sell his business, the fourth largest ready mix concrete producer in Nebraska, to a buyer he pre-approved, a buyer who would retain all of Overland’s employees and operations. CFA quickly identified the right prospects and received several offers. Ultimately, CFA negotiated a transaction favorable for both parties (and significantly exceeding the seller’s value expectations). The transaction closed in less than 6 months from when CFA was hired and helped and achieved all of the seller’s goals.