Consolidation continued in February in the AEC sector, with double digit transaction volume during the month. With a U.S. infrastructure plan beginning to take shape, expect firms to continue to look to M&A to be prepared to capitalize on opportunities in targeted markets.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants