Download PDF
January 2018
Environmental Engineering and Consulting Services
Sectorwatch
2017 was a very active year for M&A in the environmental engineering and consulting sector. A number of large transactions dominated the headlines including Jacobs' acquisition of CH2M, TRC's agreement to go private with New Mountain Capital, and Wood's acquisition of Amec Foster Wheeler, but there were also many more smaller, strategic transactions over the course of the year. 2018 is likely to see continued M&A activity within the sector amid an evolving competitive environment.
Industry Trends:
- 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 is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
