Contractors & Construction Services

Key Trends in the Market

Contractor and construction services encompasses providers of residential buildings, nonresidential buildings, and nonbuilding construction and related services, such as general contractors, construction managers, specialty trade contractors, building services firms, infrastructure contractors, infrastructure services, industrial contractors and industrial maintenance providers.  

With expenditures of more than $1.4 trillion and more than 11 million employees, the U.S. is one of the largest construction markets in the world, contributing more than 4% of gross domestic product. In addition to construction spending, a similar amount is devoted annually toward maintaining and servicing existing buildings, infrastructure and industrial facilities. The volume means there are considerable opportunities for mergers and acquisitions across the contractor and construction services space.

Our teams focus on these areas:

• Residential: This sector includes those who serve the single-family and multifamily markets, which is forecast to be $362 billion and $138 billion respectively in 2023. Residential construction is 45% of the total U.S. construction market, and firms include homebuilders, multifamily general contractors and residential service providers, such as HVAC, waterproofing and electrical services.


• Nonresidential: This sector includes office, commercial, health care, educational, transportation, communication, manufacturing and other building structures. Nonresidential construction put in place segment is expected to be $637 billion in 2023. Firms in this category include general contractors, construction and project managers, and specialty trade contractor and service providers (i.e., mechanical, HVAC, electrical, fire protection, dry wall, plumbing).  


• Nonbuilding Structures: This sector includes power, highway and street, bridges, sewage and waste disposal, and water/wastewater facilities. Nonbuilding construction put in place is forecast to be $303 billion in 2023. Examples of firms in this category include highway and bridge contractors, infrastructure services, underground utility contractors, power engineering, procurement, and construction and maintenance providers, and civil trades such as concrete and sitework. 

How We Help

Our investment bankers leverage decades of sector knowledge and industry relationships to help you achieve exceptional results through a bespoke M&A process.

Our clients include:

• Owners of private, family-owned businesses seeking retirement or ownership transitions.
• Publicly traded companies looking to sell, make acquisitions or divest of strategic assets.
• Private equity firms seeking industry experts to facilitate M&A transactions.

Are You a Seller?  
Our unique insights into the nuances of the M&A market mean you’ll receive accurate valuation guidance and preparation for potential issues that could arise during the process. We’ll work with you to tell your company’s unique story to targeted potential acquirers, drawn from our relationships across the sector, including international and domestic construction and service firms as well as well as private equity firms and family offices.    

Are You a Buyer?  
If you’re looking to make a strategic acquisition, our industry knowledge and experience will give you unique insights into valuation, deal structure and other critical elements of the process to ensure a smooth transaction.

Our team understands the unique challenges you face when looking to execute M&A transactions or transfer ownership of your contractor or construction services company. It’s important that you work with a team with industry-specific knowledge and a proven history of successful executions. FMI also has a team of consultants who focus exclusively on contractors and construction services to help you accomplish your strategic, operational and performance goals.

Who We Serve

• Construction Management, Project Managers and General Contractors
• Specialty Trades: Automation/Controls, Concrete, Drywall, Electrical, Fire Protection, Glazing, HVAC, Insulation, Interiors, Mechanical, Plumbing, Refrigeration, Remediation, Restoration, Roofing, Steel Fabrication and Erection
• Industrial Contractors: Demolition, Electrical and Instrumentation, Electric Power Control, Industrial Cleaning, Insulation, Maintenance, Painting and Coating, Process Mechanical, Refractory Services, Scaffolding, Tank
• Heavy Civil/Infrastructure: Design-Build, Demolition, Dredging, Drilling, Excavation, Marine, Shoring, Site Preparation, Underground