Presentation on theme: "ACEC Texas One-Day MBA. Presented by Mike Cauley Principal Consultant / Advisor Morrissey Goodale LLC Mergers & Acquisitions (M&A) Takeaway The story."— Presentation transcript:
ACEC Texas One-Day MBA
Presented by Mike Cauley Principal Consultant / Advisor Morrissey Goodale LLC Mergers & Acquisitions (M&A) Takeaway The story of consolidation in the engineering consulting industry
A little about myself… Education General experience and specialty/focus Experience in The Built Environment Mergers and Acquisitions experience
Outline for Today 1.Establish the M&A marketplace 2.Why you should care about the M&A marketplace 3.Perspectives from the front lines 4.What you should be doing today and beyond
Establish the M&A marketplace
Historical global M&A activity
Historical domestic M&A activity
domestic selling M&A activity
domestic buying M&A activity
Historical Texas M&A activity
Historical domestic M&A activity
Historical inter-country M&A activity
The M&A Market Highlights 1.Heightened activity both domestically and globally 2.Texas contributes heavily to the domestic M&A market 3.The U.S. is not as attractive to overseas buyers 4.The level of in-state deal making is up relative to years past but still not surpassing the amount of growth-focused interstate transactions 5.As the economy turns around, the M&A market will continue to expand
Why should you care about the M&A market?
Texas M&A activity
Why should you care about M&A? 1.Heightens your competition. 2.Can be used to drive shareholder value by adding smart geographic coverage, service lines and/or end markets/clients; increasing market share; increasing scale; and/or yielding cost efficiencies and synergies. 3.Provides an alternative to organic growth. 4.Can be used to satisfy numerous objectives that firm owners contemplating selling may have.
Perspectives from the front line
Market Sectors / End Clients
Deal Pricing (illustrated)
Additional buyer perspectives 1.All things energy and environment…and healthcare, biotechnology and life sciences 2.What have you done for me lately? 3.The umbrella effect 4.Organic growth challenges 5.Going to the coasts, Texas and all things Sun Belt in between 6.Canada, Australia and emerging markets
Additional seller perspectives 1.Caught in the middle 2.Traditional ownership transition and capitalization models are being challenged 3.Looking to liquidate investments 4.Looking for a smart way to backup resources 5.Doing right by my staff…for the long-term
What should you be doing moving forward?
Being a Ready Seller 1.Understand what selling would mean for you and your firm and understand everyones goals. 2.Understand your market position. 3.Have the answers ready before they are even asked. 4.Do not lose focus on your business. 5.If it is not right…
Being a Ready Buyer 1.Prioritize your sought after services, markets and regions. 2.Understand the financial implications of doing a deal. 3.Develop an understanding of the options available to you. 4.Be ready to act fast. 5.Whats your story? 6.Know what you are looking for to verify and develop a list of deal breakers. 7.If it is not right…
Mike Cauley Principal Consultant / Advisor Morrissey Goodale LLC Questions?