Early Findings From the 2024 Best Post-Transaction Performance Award Applications

Early Findings From the 2024 Best Post-Transaction Performance Award Applications

Where things stand

The application window for this year’s Best Post-Transaction Performance Award opened two weeks ago. Since then, we’ve received multiple applications in each of the three size categories of (a) acquisitions of firms with greater than $50 million in revenues, (b) acquisitions with between $10 and $50 million in revenues, and (c) acquisitions with less than $10 million in revenues. Last year’s Award recipients in each of these size categories were, respectively, TRC Companies (Windsor, CT) (ENR #16), Salas O’Brien (Santa Ana, CA) (ENR #54), and Englobe (Montreal, Canada).

Early findings

The Acquisition Performance Indicator (API) results from the initial applications are on par with—and in some cases—even higher than those reported last year. In 2023 the average API across all three size categories was 2.2. The median API was 1.56. What is particularly notable with the early applications is the strength of the revenue, backlog, and voluntary turnover API elements of their transactions. As a reminder, here are the findings in these three API elements from the 2023 Best Post-Transaction Performance Award applications:

• Boosting sales through acquisitions: One of the big lessons learned from last year was just how good acquirers are at increasing backlogs through their acquisitions. On average, industry acquirers have seen the backlogs attributable to their acquisitions grow 44% within a year of the transaction. 

• Top-line growth: On average, acquirers have been realizing a 33% increase in revenues attributable to their acquisitions one year after completing transactions. When you combine the average increase in backlog by acquisitions (44%) with the increase in revenues, you can see why some firms are spending relatively less on their corporate marketing staff and systems and investing relatively more in their corporate development groups. Simply put, acquisitions are a great (some might say the greatest) way to drive top-line growth. 

• Employee engagement: This was probably the biggest eye-opener from last year’s results. On average, acquirers have been seeing voluntary turnover rates decline by almost one-fifth a year into their transactions. One reason for this is that most acquisitions are creating more opportunities for employees post-transaction. Another is that acquirers are bringing improved benefits to employees at a lower cost to them. 

2024 Award eligibility and application

Eligibility for the Award is limited to firms that have acquired an AE or environmental consulting firm between January 1, 2018, and August 1, 2023. We’ve designed the application process to be simple, fast (it should take no more than 30 minutes of your time), and confidential. It requires no proprietary financial information about your firm.

All applicants will receive a benchmarking report comparing their acquisition performance to those in their chosen size category.

So, if you believe that an acquisition you’ve made deserves recognition by the industry, then we invite you to begin the application process by clicking the button below.

The window for applications is open until Friday, September 13. 

Awards ceremony and industry recognition 

This year’s Awards will be presented at the Texas and the South M&A and Business Symposium at the five-star Post Oak Hotel at Uptown Houston on October 17. Awards will be presented to the acquirers that report the highest APIs in each of the three size categories. 

In addition to the Awards and the accompanying industry recognition, Morrissey Goodale will make a $1,000 donation to an AE industry-related 501(c)(3) organization chosen by each recipient. We will also feature each Award recipient in an upcoming edition of Word on the Street.

If you have any questions about whether your firm is eligible to apply for the Award or about the application process itself, please contact our Awards department at [email protected].