Tuesday, March 29, 2011

Finding Quality Targets and Successful Integration are Biggest M&A Challenges for A/E Firms

Recent PSMJ finds that more than 45% of buyers struggle in these areas

Newton, MA – Growth through acquisition can be challenging for even the most seasoned acquirers. There is much ambiguity and uncertainty in the dealmaking process...and success is never a guarantee. To better understand how today’s A/E firm leaders are making winning deals, PSMJ Resources’ weekly electronic news brief, the M&A Insider, polled recent A/E buyers. Among other things, the survey asked where acquirers were finding the biggest challenges.

The survey results are in and the biggest challenges for today’s buyers were clear. More than 45% of the survey respondents pointed to finding quality targets and successful integration as the biggest challenges. That compares to only 25.8% citing coming to agreement on purchase price and/or transaction structure and just 6.5% found conducting thorough due diligence to be the biggest challenge.

“The findings of this survey are very consistent with what we’re hearing every day from our clients” states PSMJ Senior Consultant Brad Wilson, CMA. “Sifting through the ‘noise’ and finding that target that really aligns with the acquirer on multiple levels is easier said than done. Further, once that target is identified, the integration wheels need to start turning. This is where a lot of firms stumble—integration receives not much more than a brief thought until after the deal closes. Looking for potential synergies and consistencies as well as the gaps and areas of misalignment are vital responsibilities for the M&A team well before the closing.”

To learn more about the results of our latest M&A Insider survey as well as the biggest M&A challenges facing A/E firm leaders and how to overcome them, PSMJ’s M&A Senior Executive Roundtable on May 2nd through 5th in St. Petersburg, FL is the place to be. Participants in this fact-filled and interactive program won’t just benefit from PSMJ’s nearly four decades of advising A/E firm leaders. They’ll also benefit from the first-hand insight and expertise of:

× Michael J. Carragher, P.E. of 900-person transportation/land development/environmental firm VHB. As the lead for VHB’s M&A efforts, Mike has first-hand insight on finding, negotiating, closing, and integrating successful transactions for VHB.

× Jeff Lloyd of Stantec, a global multidisciplinary powerhouse. Since 1976, Stantec has completed more than 80 acquisitions. In his current role with Stantec, Jeff is charged with leading the company’s M&A-focused growth efforts and has been a part of some of Stantec’s largest transactions.

× James Frankel, Esq. and Andrew Ross, Esq. of the Construction Practice Group at leading law firm Arent Fox. James and Andrew bring many years of M&A transaction experience in the architecture, engineering, and construction industry.

Michael, Jeff, James, and Andrew bring a wealth of knowledge and perspective to the program and, combined with PSMJ’s insight, there is no better source of M&A information you can use to create winning transactions.

To encourage optimal interaction and dialogue, space is very limited at this event. For more information, or to register, click here or call 800-537-PSMJ (7765) today!

About PSMJ’s M&A Insider: Th is weekly electronic news brief is the source for A/E firm leaders to hear about the latest transactions and pick up tips for success from PSMJ’s M&A experts. To subscribe to this complimentary must-have resource, contact Sue LeComte at slecomte@psm.

Jennifer Bentley
PSMJ Resources, Inc.

No comments:

Follow @PSMJ_Resources