21 Jul

FMI Capital Advisors Releases 2022 M&A Trends for Engineering and Construction

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FMI Capital Advisors, a leading investment banking firm for companies that work and invest in the built environment, today released its 2022 M&A Trends for Engineering and Construction report.

The report dives into the key trends driving merger and acquisition (M&A) activity in today’s engineering and construction (E&C) market and features quotes and insights from survey respondents.

“2021 was a record year of M&A activity across all sectors, and specifically in the E&C sector, as deals that were paused in 2020 came back to market and sellers that would have exited over the next few years accelerated their timeline, either worried about the risk of increased capital gains or inspired by frothy valuations,” said Alex Miller, managing director at FMI Capital Advisors. “While 2022 will likely not meet the level of activity we saw in 2021, the E&C industry is sustaining a steady long-term increase in M&A activity driven by seller demographics, macrotrends in the marketplace and sustained buyer demand, including increased attention from private equity firms.”

Key findings of FMI’s M&A Trends Report include:

  • Nearly 55% of respondents stated that acquisitions were part of their current strategy.
  • Around two-thirds of respondents said their companies are more likely to make an acquisition in 2022 than they were in 2021.
  • More than 86% of respondents believe industry valuations in the E&C industry have risen over the past 24 months.
  • 42% of respondents believe valuations in the E&C industry will increase slightly relative to 2021.
  • Current M&A activity is being driven by a number of factors, including demographic trends and need for ownership transfer, labor shortage throughout the industry, aging U.S. infrastructure, energy transition, consolidation of building services and increased interest from private equity firms.

Download the full 2022 M&A Trends for Engineering and Construction here.

About FMI Capital Advisors
FMI Capital Advisors has dedicated and deeply experienced investment banking teams advising clients on M&A transactions across the built environment. We maximize value for our clients through our deep market knowledge, strong technical expertise and an unparalleled network of industry relationships. For more information, visit fmicapitaladvisors.com.