2011 May be the Year for Mergers and Acquisitions
Press Release: June 2, 2011
FAYETTEVILLE, Ark. (June 2, 2011) — After a boom in 2007 and near stagnancy in the years following, merger and acquisition activity is heating up for firms in the architecture, engineering, planning and environmental consulting industries.
Hobson Hogan, a principal with ZweigWhite, believes demographic factors and increased competition are driving factors behind this increase in activity. He said, “Most firms in the A/E industry will face a choice in the next five years to either begin an internal transition of ownership, if they have not already done so, or sell to a third party. For many, the question is not whether they will sell, it is when they will sell.”
According to ZweigWhite’s 2011 Merger & Acquisition Survey
, the percentage of firms considering an acquisition or sale have increased dramatically over previous years. In 2011, 57 percent of firms report they are currently considering buying another firm –a six percent increase over 2010. A huge jump was seen in those considering selling to another firm. In 2010, 29 percent of respondents reported they were considering selling, but that number shot to 55 percent in 2011.
According to the 2011 survey, 20 percent of firms say they are considering merging, and only 17 percent say they are not considering any kind of M & A activity. Two percent did not specify. Sixty five percent of firms report mergers or acquisitions in their strategic plan for the next five years.
“Will 2011 be the year where the tide turns, and we begin to grow M & A volume? I think the answer to that question is a ‘yes,’” Hogan says.
ZweigWhite is holding a mergers and acquisitions Summit June 16-17, 2011 at the Four Seasons in Las Vegas. The summit features notable presenters on a wide range of relevant issues, great networking opportunities, and solutions to many of the challenges of mergers and acquisitions.
For more information on the AEC Mergers & Acquisitions Summit visit www.zweigwhite.com/events/mergers
About Zweig Group
Zweig Group, three times on the Inc. 500/5000 list, is the industry leader and premiere authority in AEC firm management and marketing, the go-to source for data and research, and the leading provider of customized learning and training. Zweig Group exists to help AEC firms succeed in a complicated and challenging marketplace through services that include: Mergers & Acquisitions, Strategic Planning, Valuation, Executive Search, Board of Director Services, Ownership Transition, Marketing & Branding, and Business Development Training. The firm has offices in Dallas and Fayetteville, Arkansas.