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October 2018
Architecture Engineering & Environmental Services
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