Engineering and construction M&A update: H2 2019
Engineering and construction industry overview and indicators
Construction spending in the U.S. economy, although seasonal in nature, has continued a steady upward trend over the past five years. The main driver of this growth has been private sector spending. Although the rate of growth has slowed over the past few years, it should be noted that one of the key leading indicators of construction growth, ABI, trended slightly upward in Q4 2019. Additionally, the expected stability in the low rate environment should help maintain a steady capital spend.
This steady construction activity has translated to the capital markets with a slight upward movement in the EBIDTA multipliers for publicly traded contractors. As expected in the construction industry, there is a wide variance in EBIDTA between contractors in size, type and specialty niche. However, the volume of deals remains much lower over the past couple of years compared to four or five years ago.
More insights like this
Healthcare M&A update: Q3 2019
Food and beverage M&A update: Q4 2019
Specialty Foods M&A update H1 2019
You might be interested in
Mergers and acquisitions
Construction
Real estate
Private equity
Asset management
Law firm and professional services
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
