With PSMJ’s AEC Mergers & Acquisition Summit coming up this week in sunny Palm Beach, Florida, here arefive tips for boosting your M&A success! Enjoy!
Buy a future, not just a backlog.
The most expensive mistake in AEC M&A is paying for yesterday’s revenue and earnings. Evaluate targets for strategic capabilities, client access, and leadership depth. A strong backlog can evaporate with one key departure; a differentiated niche and committed talent create value that compounds long after the deal closes. The asset you’re buying is momentum, not history.
Culture will outperform a valuation model.
Financial models assume rational behavior; people rarely deliver it. Misaligned decision-making styles, compensation philosophies, or client-service norms can destroy a deal that looked perfect on paper. Spend as much time on cultural due diligence as you do on financial performance adjustments, and be honest about what you’re willing to change. Integration risk is human risk.
Integration starts before the Letter of Intent.
Too many firms treat integration as a post-closing project. The winners design the operating model during courtship (leadership roles, brand strategy, PM systems, and client transition plans). The first 120 days set the tone for the next five years; ambiguity is the enemy of retention…and ambiguity is what drives away top performers.
Don’t let deal structure undermine trust.
Earn-outs, holdbacks, and retention bonuses can close valuation gaps…or signal distrust. Structure terms that reward growth without turning former owners into short-term mercenaries. Transparency about valuation logic and career paths does more to keep rainmakers engaged than any contractual clause. In the end, alignment beats enforcement.
Define success beyond size.
Growth for its own sake dilutes margins and leadership attention. Be explicit about what the acquisition must deliver: new geography, sector expertise, succession, or client diversification. If you can’t articulate how the combined firm will win work it couldn’t win alone, walk away. The best deal is the one that strengthens strategy, not ego.
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