INDUSTRY UPDATE | MIDYEAR 2024
Architecture, Engineering & Construction
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CCA’s AEC Practice Leadership
Service Areas
Architecture
- Design
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Engineering
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Construction
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- Infrastructure Svcs
- Electrical
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Deep Experience Advising AEC Clients
Sell-Side M&A Experience
Select Corporate Advisory Clients
Key Trends Impacting the AEC Sector
There are several key themes driving growth and M&A activity in the Engineering sector…
Increased Federal Spending
- Increased federal funding for public construction projects is an indicator for players in the market that the strong demand we currently see for public projects will persist throughout the rest of 2024.
- Highway and street projects as well as sewage and wastewater projects saw increases in spending in 2024.
Heightened Focus on Sustainability
- Using AI and other innovative technologies allows engineering firms to make up for labor shortages and cost increases by automating the design process.
- E&C firms are primed to use new technology to better manage quality control and compliance standards.
Improved Staffing
- The number of employees in the construction market has increased in 2024 which in turn has improved the speed at which firms are able to finish projects.
- Firms will also be able to take advantage of short-term workers as contracted employment is becoming increasingly popular among younger members of the construction labor pool.
…as well as a few challenges creating headwinds that management teams are navigating
Decreasing Demand for Office Space
- Commercial real estate faces challenging roadblocks in the coming years headlined by diminishing demand for office spaces due to the increasing availability of remote work.
- Subleasing pre-built spaces and shared office spaces are becoming more prevalent as opposed to new office construction.
Rising Interest Rates
- High interest rates and uncertainty around potential rate cut timing leaves uncertainty over the ability to finance M&A.
- E&C firms will need to pay close attention to the strategic fit of potential targets when considering an acquisition due to the unfavorable financing environment.
Increasing Labor and Material Costs
- Cost pressures stemming from labor and material inputs have made budgeting projects more complicated for E&C firms.
- According to S&P Global Market Intelligence’s ECCI(1), Materials/Equipment and Subcontractor labor costs have increased 1.8 and 9.8 points respectively in May 2024.
2024 Transaction Headlines
New Mountain Capital Acquires Consor Holdings
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acquired
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Commentary
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TEP Acquires Piedmont Utility Group
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acquired
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Commentary
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GAI Consultants Acquires Creighton Manning
acquired
May 2024 |
Commentary
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TEP Acquires Piedmont Utility Group
New Mountain Capital Acquires Consor Holdings
acquired
June 2024 |
Commentary
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TEP Acquires Piedmont Utility Group
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acquired
May 2024 |
Commentary
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GAI Consultants Acquires Creighton Manning
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acquired
May 2024 |
Commentary
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TEP Acquires Piedmont Utility Group
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acquired
April 2024 |
Commentary
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2024 Transaction Highlights
Q2 2024
| Date | Target | Acquiror | Target Business Description | TEV |
| 6/27/2024 |  |
 |
Provides engineering and construction services, including comprehensive geotechnical engineering, drilling, testing, inspection, and environmental services. | N/A |
| 6/12/2024 |  |
 |
Offers civil engineering and surveying services focused within the South Florida market. | N/A |
| 6/4/2024 |  |
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Provides design and building architecture services focused on education, religious, and community design. | N/A |
| 6/3/2024 |  |
 |
A woman-owned business that offers engineering design and consulting services for commercial, institutional, industrial, governmental, and transportation clients. | N/A |
| 5/1/2024 |  |
 |
Provides engineering services, such as mechanical, electrical, plumbing, and fire protection engineering. | N/A |
| 4/24/2024 |  |
 |
Offers professional services, civil engineering, and consulting, specifically public infrastructure development and management services for transportation customers | N/A |
| 4/11/2024 |  |
 |
Develops and provides transportation infrastructure projects and civil engineering services, such as roads, highways, freeways, bridges, and railroad structures. | N/A |
Q1 2024
| Date | Target | Acquiror | Target Business Description | TEV |
| 3/12/2024 |  |
 |
Provides managed geospatial services including GIS, survey, mapping, corridor mapping, and construction surveying. | N/A |
| 3/12/2024 |  |
 |
Offers engineering and project management services and is headquartered in Bethlehem, Pennsylvania. | N/A |
| 2/21/2024 |  |
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A provider of civil engineering, water and wastewater engineering, and land surveying services for various public works and land development projects. | N/A |
| 2/6/2024 |  |
|
Provides engineering services to public works and transportation and offers construction management, project management, and special services. | N/A |
| 1/26/2024 |  |
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Operates as an engineering and architectural company, provides planning, technical, and environmental services | N/A |
| 1/25/2024 |  |
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Offers planning, design, and construction services to customers in the maritime, aviation, municipal, education, healthcare, transportation, and commercial markets. | N/A |
| 1/17/2024 |  |
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The company is a platform that provides architecture, engineering, consulting, and design services and solutions, including MEP engineering and LEED consultation. | N/A |
Public Company Valuation Multiples
CCA tracks publicly traded companies in across multiple AEC sub-sectors:
Engineering & Professional Services
Providers of professional technical engineering, project management, and consulting solutions.
Diversified Industrial Services
Providers of a suite of engineering and construction services focused on industrial and utilities end-markets.
Construction Services
Providers of construction and development services for across multiple end-markets, such as transportation, industrial, and power.
CCA AEC Sector Index Performance
Market Commentary
- The Construction Services sector outperformed the other sector indexes CCA tracks as well as the S&P 500. Driving factors of the strong performance were increased spending for public infrastructure projects and construction needs across the EV, Data Center, Manufacturing, and Life Sciences industries.
- The Diversified Industrials Services sector has benefitted from the energy transition similarly to Construction Services, however, public companies in this sector will still face headwinds in 2024 related to the future demand of natural gas that could impact their ability to keep up with the broader market.
- Engineering & Professional Services firms anticipate continued challenges relating to the decrease in demand for new commercial real estate development, delayed project completion timelines and staffing challenges.
AEC Public Company Market Data
Engineering & Professional Services
Providers of professional technical engineering, project management, and consulting solutions.
Diversified Industrial Services
Providers of a suite of engineering and construction services focused on industrial and utilities end-markets.
Construction Services
Providers of construction and development services for across multiple end-markets, such as transportation, industrial, and power.
Source: S&P Capital IQ Data as of 06/28/2024
Select AEC Transactions
Q2 2024
($ in millions)
| Announced Date | Target | Acquiror | TEV | EBITDA | TEV/ EBITDA |
Target Business Description |
| 6/10/2024 | CNS Microwave, LLC | Everest Infrastructure Partners, Inc. | N/A | $ – | $ – | CNS Microwave, LLC owns and operates a wireless communications tower. The company was icorporated in 1996 and is based in Charleston, West Virginia. |
| 6/27/2024 | Consulting Services Incorporated | Universal Engineering Sciences, LLC | N/A | – | – | Consulting Services Incorporated provides engineering and construction services. The company was incorporated in 2009 and is based in Lexington, Kentucky. |
| 6/18/2024 | Voyansi | Hexagon AB (publ) | N/A | – | – | Voyansi operates as a building information modelling and virtual design and construction solutions, and reality capture services provider. The company was founded in 2010 and is based in New York, New York. |
| 6/3/2024 | Young And Mcqueen Grading Company Inc. | The Branch Group | N/A | – | – | Young & McQueen Grading Company, Inc. operates as a site development contractor, specializing in highway, and residential and commercial projcts construction. The company was founded in 1986 and is based in Burnsville, North Carolina. |
| 6/12/2024 | Biscayne Engineering | Atwell, LLC | N/A | – | – | Biscayne Enginering Company, Inc. offers civil engineering and surveying services. The company was founded in 1898 and is headquartered in Miami, FL. |
| 5/23/2024 | Piedmont Utility Group | Tower Engineering Professionals | N/A | – | – | Piedmont Utility Group provieds construction services for telecommiunications industry. The company is based in Mooresboro, North Carolina. |
| 5/13/2024 | Creighton Manning, a GAI Company | GAI Consultants, Inc. | N/A | – | – | Creighton Manning Engineering, LLP, a civil engineering company, provides transportation engineering and planning services. The company was founded in 1965 and is based in Albany, New York. |
| 5/1/2024 | AKF Group LLC | WSP Global, Inc. | N/A | – | – | AKF Group LLC provies engineering services, such as mechanical, electrical, plumbing, and fire protection to the healthcare, education, and commercial industries. The company was founded in 1989 and is based in New York, New York. |
| 5/1/2024 | The Rushing Company L L C | IMEG Corp. | N/A | – | – | The Rushing Company, L.L.C. Provides construction engineering services. The company was founded in 1982 and is based in Seattle, Washington. |
| 4/11/2024 | NCM Engineering Corporation | TranSystems Corporation | N/A | – | – | NCM Engineering Company develops and provides transportation infrastructure projects and civil engineering services to government municipalities. The compay was incorporated in 2012 and is based in Irvine, California. |
| 3/14/2024 | Fluhrer Reed PA | NV5 Global, Inc. | N/A | – | – | Fluhrer Reed PA operates as a structural engineering firm that offers structutral engineering for commercial and multifamily residential spaces. The company was founded in 1999 and is based in Raleigh, North Carolina. |
| 3/12/2024 | D’Huy Engineering | CHA Consulting, Inc. | N/A | – | – | D’Huy Engineering, Inc. provides engineering and project management services. The company was founded in 1976 and is headquartered in Bethlehem, Pennsylvania. |
| 3/12/2024 | Gdb Geospatial LS, P.C. | SAM-Construction Services, LLC | N/A | – | – | GdB Geospatial LS, P.C. provides managed geospatial services including GIS, survey, mapping, corridor mapping, and construction surveying. The company was incorporated in 2010 and is based in Melville, New York. |
| 2/29/2024 | Insight Group LLC | RMA Group, Inc. | N/A | – | – | Insight Group is a company that provides geotechnical and enviromental engineering services, construcation testing and inspection, and construction cconsulting. The company was founded in 2019 and is heaedquartered in North Charleston, South Carolina. |
| 2/21/2024 | Chastain-Skillman, LLC | DCCM, LLC | N/A | – | – | Chastain-Skillman, LLC provides civil engineering, water and wastewater engineering, and land surveying services for various public works and land development projects. The company was founded in 1998 and is based in Lakeland, Florida. |
| 2/20/2024 | AE Engineering, Inc. | WSB & Associates, Inc. | N/A | – | – | AI Engineering, Inc. provides civil enginering, construction management, and quality control inspection services. The company was incorporated in 2006 and is based in Jacksonville, Florida. |
| 2/6/2024 | Southstar Engineering And Consulting, Inc. | DCCM, LLC | N/A | – | – | Southstar Engineering And Consulting, Inc. provides engineering services to public works and transportation. It offers construction managemnt, project management, and speicial services. The company was incorporated in 2006 and is based in Riverside, California. |
| 1/19/2024 | Causseaux, Hewett, & Walpole, Inc. | NV5 Global, Inc. | N/A | – | – | Causseaux, Hewett, & Walpole, Inc. operates as a civil consulting company that provides civil engineering, land surveying and development planning, landscape architecture, transportation planning and traffic engineering, and construction services. The company was founded in 1988 and is based in Albany, New York. |
| 1/19/2024 | CHA Consulting, Inc. | H.I.G. Capital, LLC | N/A | – | – | CHA Consulting, Inc. operates as a full-service engineering design, consulting, and construction management firm that provides technology-enhanced planning and design services to public, private, and institutional clients. The company was incorporated in 1927 and is based in Albany, New York. |
| 1/18/2024 | Karins and Associates, Inc. | Atwell, LLC | N/A | – | – | Karins and Associates, Inc. provides consulting services in civil engineering, planning, surveying, high definition laser scanning, and construction services to public and private sector clients. The company was founded in 1973 and is based in Newark, Delaware. |
CCA’s Investment Banking Team
- Client Success
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CCA’s Investment Banking team is a seasoned team dedicated to its clients’ outcomes. We have worked with dozens of companies in projects ranging from Sell-side Investment Banking, to Ownership Alternatives, to Valuations to Boards of Directors. CCA partners with its clients, shepherding them throughout the process, and supporting them to reach their goals.
Charlie Maskell
Managing Partner
Charlie leads the CCA teams dedicated in assisting businesses enhance shareholder value and position themselves to sell to a strategic buyer, recapitalize with a private equity investor transition through an internal transaction.
Tim Brasel
Managing Director
Tim leads the day-to-day management and execution of many of the deals CCA transacts for its clients. He’s helped lead and guide the sale and acquisition of numerous middle market companies. Learn more:
Martin O'Neill
Managing Director
CCA clients appreciate that Marty has walked a mile in their shoes, having spent 30 years as a business leader in companies of various industries and sizes before joining CCA as an advisor to middle market businesses. Learn more:
Stuart Knott
Managing Director
Stuart recognizes that for most business owners, selling the company they have built is one of their most important life decisions. He brings a unique and valued perspective based on 20 years’ experience in the middle market.
Andy Spears
Vice President
From assisting high-growth market leaders through sale processes to advising companies struggling with cash flow issues, Andy has helped a breadth of companies realize their strategic goals for more than a decade.
Katie Kieran
Vice President
Katie has advised many middle market business owners on how to create value and optimize the outcome when they’re ready to sell, drawing on her strong analytics, strategic, and financial modeling skills. Learn more:
Kevin Afriyie
Associate
Kevin’s proficiency in technical skills is evident as he conducts financial analyses and modeling, carries out industry research, and identifies potential investors, buyers, acquisition targets, and merger partners.
Aidan Olmstead
Senior Analyst
An expert in financial modeling, accounting, and business research, Aidan is responsible for preparing financial projections, business valuations, investment memoranda, and marketing materials for clients.
Miles Gally
Analyst
Miles supports our senior-level investment banking staff in preparing the financial projections and business valuations that are essential to a successful deal execution and a strong outcome.
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