Rise in acquisitions of oil & gas consulting businesses and firms offering consulting around new digital technologies
The Engineering Consulting Global M&A Report 2018
We are pleased to present our annual review of M&A and equity market trends within the engineering consulting sector.
This report considers the latest developments impacting M&A across the global engineering consulting industry in 2017. We also provide a comprehensive analysis of the Equiteq Engineering Consulting Share Price Index, the only published stock price index for the industry.
M&A activity fell over the year, as infrastructure spending declined across a number of major economies. There was also a fall in cross-border deal flow. Despite these industry headwinds, there was a rise in acquisitions of oil & gas consulting businesses, as well as firms offering consulting around new digital technologies. In-demand digital capabilities include advanced engineering analytics and immersive technologies, which enhance services and create efficiencies for AEC professionals. EBITDA valuation metrics were strong in the year, supported by increasing private equity participation in deal flow, rising valuations of listed engineering consulting buyers, as well as these cash-rich acquirers’ desire for new avenues of growth in niche segments of the market.
As commodity prices stabilize and the infrastructure investment gap starts to narrow, there is the potential for a rebound in overall deal activity. There will be particularly strong opportunities for pioneering business owners and entrepreneurs to create value and make profitable exits in hot disruptive spaces of the market. One of these disruption zones is within the intersection of technology and engineering.
We hope that this latest edition of The Engineering Consulting Global M&A Report gives you a taste of Equiteq’s unparalleled insights into deal activity within the industry.
If you would like to have a chat about your current sale journey as a business owner or acquisition strategy as an acquirer, please get in touch.