FMI's 2018 M&A Trends for Engineering and Construction
2017 was another active year for M&A activity in the engineering and construction industry. Based on our most recent survey, industry participants believe the momentum will continue into 2018. Nearly three-quarters of all respondents believe M&A activity will increase in 2018 compared to 2017, and nearly 70% of respondents indicated that acquisitions are “a part of (their) current strategy,” compared to 60% last year.
Last year we wrote that, “If public stocks are an indicator of future acquisition activity, then the E&C industry is poised for a robust M&A market in 2017.” We did, in fact, see public companies prioritize acquisitive growth and ramp up their M&A efforts. More than 20% of all M&A transactions in the E&C industry last year had a public company buyer, the highest level since 2011. This has continued into 2018 with multiple announced deals.
