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December 2018
Architecture Engineering & Environmental Services
Sectorwatch
M&A activity remains strong in the AEC sector with more than 40 transactions announced already in Q4 2018. Acquirors included a range of strategic buyers, private equity groups, and private equity-backed portfolio companies. The volume of consolidation continues to signal long-term industry growth opportunity.
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
