How prepared are A/E firm leaders to undertake M&A?

PSMJ Resources, Inc.
Posted on: 06/23/15
Written by: PSMJ Resources, Inc.

photo-1448318440207-ef1893eb8ac0-3.jpgMerger & Acquisition (M&A) activity is certainly on the upswing, and on its way to reaching pre-recession levels. But how ready are A/E firm leaders to take on the task of buying or selling?

In a recent webinar, The 10 Mistakes That You Cannot Afford to Make in A/E Mergers & Acquisitions,  PSMJ senior consultant Brad Wilson polled his audience, asking them to rate the following from 1-5 (1- Absolutely 5-Not at all): Our management team has the current capacity to undertake M&A.

The results were informative if not surprising. The largest percentage (37%) of participants admitted that their management team somewhat has the current capacity to undertake M&A. Meanwhile, almost 50%, felt that their management team close to if not absolutely has the capacity to undertake M&A.  Good news, however, is that only14% said that their firm's management team has little or no capacity to undertake M&A.  

image002

 

Wherever your A/E firm management rates in terms of its capacity to undertake M&A, a first step is understanding the process. Among the key takeaways of Wilson's presentation were the following: 

The Steps in the M&A Process

  1. Planning & Preparation (Including Retaining a M&A Consultant)

  2. Research/Identifying Candidates & Making Initial Contact

  3. Preliminary Discussions and Continued Investigation

  4. Negotiations & Reaching Agreement-in-Principle (LOI Point)

  5. Due Diligence Process & Post-Merger Planning

  6. Pre-Closing Preparation: Including Final Negotiations & Documentation

  7. Closing & Announcements Planning

The 10 Mistakes That You Cannot Afford to Make in A/E Mergers & Acquisitions is a complimentary webinar available to PSMJ PULSE members.

 


 

SUBSCRIBE TO BLOG:
June 27, 2025

Quick Take: PSMJ’s 2025 Compensation Benchmark Survey Data

PSMJ Resources, Inc.’s just-released2025 AE Management & Staff Compensation Modelgives us an inside look at the latest data on compensation trends in our industry. With data..

Read More
June 19, 2025

AEC Transaction News

June 16, 2025 – Tampa, FL – Ardurra Group Inc., a national engineering and consulting firm, announces the acquisition of Janus Research, Inc., a firm specializing in cultural..

Read More
June 19, 2025

You Already Have an LOI. Here’s Why You Still Need an M&A Advisor

A buyer made an offer. They seem trustworthy. Why pay an advisor when the offer is on your desk? In the current very heated M&A market, PSMJ has run into this situation often...

Read More