AEC INDUSTRY M&A REACHES NEW HEIGHTS IN 2019 AND INTO 2020: Q1 2020 IN REVIEW AND OUTLOOK FOR THE YEAR

摘要

Deal-making started 2020 at a recordbreaking pace. January and February saw a 25% increase in deal announcements over the same period in 2019. Then COVID- 19 hit. Deal announcements in March fell 50%. The first quarter of 2020 ended flat compared with 2019. Some of the notable highlights and trends from Q1 include: 1. Record-setting Q1 deal activity: There were 93 A/E deals announced in the US in Q1 – matching the record set in 2019. However, we expect the pace to cool off in Q2 as buyers and sellers navigate the difficulties of completing a deal during these turbulent times. 2. Private equity continued to reshape the AE industry. Over one in five deals in Q1 were either an acquisition by a private equity-backed operating firm or a recapitalization by a private equity group. This is in keeping with the levels seen in 2019. A great example of this type of deal was the January acquisition of bridge engineering expert CME Associates (Mansfield, CT) by private-equity backed CHA Consulting (Albany, NY).