Architecture Engineering & Environmental Services

October 2018

Sectorwatch

September saw several private equity backed deals focused on power and energy services. Bernhard Energy Solutions acquired St. Louis-based mechanical and electrical engineering firm 8760 Engineering and TRC acquired Ohio-based power/utility engineering firm, IJUS. Both of these deals are reflective of anticipated growth in the power, utilities, and energy-as-a-service markets.

 

Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • 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