Word on the Street: Issue 221

Checking in on the 2024 M&A Movers and Shakers

Way back in January, Word on the Street made note of “Nine Movers and Shakers to Watch in 2024.” At the time, these were the nine most acquisitive AE firms in the U.S. Their combined 59 acquisitions represented a remarkable 14% of all domestic industry consolidation in 2023. Now, as we hurtle towards the end of this year, we thought we’d check in on the performance of the M&A programs of each of these movers and shakers.

Still influential, but different:  As a group, their influence on industry consolidation has remained consistent with what it was last year. Their 57 domestic acquisitions represent just under 14% of all U.S. M&A activity year-to-date. However, some movers have cooled their acquisition jets this year, while other shakers have stepped on the deal-making gas pedal. And—spoiler alert—there are four other firms that legitimately can be viewed as new additions to the movers and shakers. (More on these later.) 

Let’s take a look at the nine movers and shakers in descending order of their 2023 deal-making activity. We’ll see which firms have increased or kept up with last year’s pace and which ones have slowed down. Then we’ll take a quick look at the four additional firms that are shaking things up in the industry through M&A in 2024.

1. Bowman Consulting Group (Reston VA) (ENR #78) (NASDAQ: BWMN): Earlier this year, Bowman was presented with our 2024 Most Prolific and Proficient Acquirer Award for their industry-leading 12 acquisitions in calendar 2023. Year-to-date, the firm’s acquisition program has slowed somewhat, with just eight acquisition announcements. Bowman’s most recent addition was Exeltech Consulting (Lacey, WA) last month. (Morrissey Goodale initiated the transaction and advised Exeltech.) In 2024 Bowman has added almost 300 employees through acquisitions in VT, NE, MO, NJ, CO, WA, and FL. The firm improved its ENR ranking from #87 to #78.

2. UES (ENR #34) (Orlando, FL): Last year, this privately held engineering and consulting firm announced seven acquisitions. In 2024, the firm’s acquisition program has slowed to the point that year-to-date they have announced just one acquisition, that of Consulting Services, Inc. (Lexington, KY) in June. UES rose two places on the 2024 ENR Top 500 list to #34.

3. RMA Companies (Rancho Cucamonga, CA) (ENR #112): In 2023, this technology-enabled laboratory testing, inspection, and quality management services firm was the third-most acquisitive firm in the U.S. with seven acquisitions. Year-to-date, RMA’s deal count has slowed compared with 2023. The firm has announced just three acquisitions, with the most recent being that of Earth Engineers (Camas, WA) in July. In 2024, the firm has added almost 130 employees through acquisitions in NV, SC, and WA. RMA rose 34 places on the most recent ENR Top 500 Design Firm list.

4. Verdantas (Dublin, OH) (ENR #113): This fast-growing, private equity-backed environmental consulting, sustainable engineering, modeling, and digital technology firm made six acquisitions in 2023. Year-to-date, it has already eclipsed that number with nine deal announcements. The firm’s most recent acquisition was that of ASEC Engineers (Lakewood, CO) last month. In 2024 Verdantas has added nearly 700 employees through acquisitions in CA, FL, OH, MD, VA, and CO. The firm rose 36 places on this year’s ENR Top 500 Design Firm list.

5. SAM, LLC (Austin, TX) (ENR #86): One of the nation’s largest geospatial and inspections firms announced six acquisitions in calendar 2023. Year-to-date, it has already made five additions with the most recent being Xtensible Solutions (Orlando, FL) in October. In 2024, SAM has added over 300 employees through acquisitions in NC, NM, FL, IN, and NY. The firm rose two places on the 2024 ENR Top 500 Design Firms list.

6. IMEG (Rock Island, IL) (ENR #52): With a focus on the built environment, building optimization, infrastructure, planning, and construction engineering-related services, this national engineering and design firm—and recipient of the 2023 Morrissey Goodale Most Prolific and Proficient Acquirer Award—announced six acquisitions in 2023. Year-to-date, it has already almost doubled that count with 11 acquisitions, making it the joint top acquirer of design firms in the U.S. The firm’s most recent acquisition was of FHI Studio (Hartford, CT) last week. In 2024, IMEG has added almost 600 employees through acquisitions in TX, ID, NY, WA, NH, MI, MN, CO, NC, and CT. The firm rose five places on the 2024 ENR Top 500 Design Firms list.

7. Salas O’Brien (Irvine, CA) (ENR #39): With locations across North America, this engineering, construction management, technology, and commissioning firm made five acquisitions in 2023. Year-to-date, the firm has already surpassed that with seven acquisitions. The most recent addition was Hughes Engineering & Consulting (Raleigh, NC) in August. (Morrissey Goodale initiated the transaction and advised Hughes.) In 2024, Salas O’Brien has added almost 600 employees through acquisitions in WI, TN, AL, MO, TX, and NC. The firm jumped 15 places on this year’s ENR Top 500 list.

8. Atwell, LLC (Southfield, MI) (ENR #71): This fast-growing, privately held, full-service consulting, engineering, and construction services firm that serves the real estate and land development, power and energy, and oil and gas markets made five acquisitions last year. Year-to-date, it has acquired six firms, the most recent being Russell + Mills Studios in June through its portfolio firm RVi Planning and Landscape Architecture. (Morrissey Goodale initiated the transaction and advised RVi). In 2024, Atwell has added almost 250 employees through acquisitions in FL, DE, LA, CO, and AZ. Atwell rose three spots on the ENR Top 500. 

9. NV5 (Hollywood, FL) (ENR #24) (NASDAQ: NVEE): Rounding out the top nine movers and shakers of 2023 was NV5. This publicly traded, leading provider of technology, conformity assessment, and consulting solutions for public- and private-sector clients supporting infrastructure, utility, and building assets and systems announced five acquisitions in 2023. Year-to-date, it has announced seven acquisitions in the U.S. (and one overseas) with the most recent being that of Senergy BCS (Salt Lake City, UT) last month. In 2024, NV5 has added over 150 employees in the U.S. through acquisitions in FL, NC, IL, CA, WA, and UT. The firm fell two places on this year’s ENR Top 500 list.

The 80/20 rule (sort of): Year-to-date, four other firms are as acquisitive (if not more so in some cases) as these nine movers and shakers. Indeed, each of these four rank among the top U.S. acquirers this year. They are Trilon (Denver, CO) (11 acquisitions year-to-date and joint leading acquirer of U.S. firms in 2024), LJA Engineering (Houston, TX) (ENR #67) (nine acquisitions year-to-date), Terracon (Olathe, KS) (ENR #18) (six acquisitions year-to-date), and The HFW Companies (St. Louis, MO) (ENR #242) (five acquisitions year-to-date). Between these four firms and the nine movers and shakers, these 13 firms have been responsible for over 20% of all U.S. acquisitions this year. 

Meet the deal-makers that are changing the industry: Executives from the movers and shakers will be among the panelists and attendees at the 2025 Southeast M&A and Business Symposium in the Mandarin Oriental in sunny Miami this March 12 through 14. Join them and over 200 AE industry executives, investors, and experts to get a “first read” of how the industry is performing in 2025 and where it’s headed, to learn how industry M&A and valuations are playing out in the new year, and to do some power networking to help take your firm to the next level. Register today at the early bird rate to reserve your place. 

To contact Mick Morrissey, email him at [email protected] or text him at 508.380.1868.

Stop It! Tactic-Only Thinking Is Sinking Your Strategy

Strategic planning is the best opportunity an AE firm has to prepare for the future. But far too often, strategy teams disappear into the tactical woods, hunker down by a campfire, and spin yarns about day-to-day issues—blissfully unaware of the big picture that is passing right under their noses.

Let’s be clear—tactics are vital, but only when they serve a purpose within a strategic context. When teams fail to make the distinction between strategy and tactics, they risk losing direction. And at a time when AE firms face mounting challenges from seemingly every direction, the stakes for staying strategic have never been higher.

Strategy and tactics are a package deal—but they are distinct

Think of strategic planning as setting the destination for a cross-country road trip—deciding which cities to visit, identifying must-see landmarks, and mapping out the best route to get there. Tactics, on the other hand, are the specifics of how you’ll navigate each leg of the journey—gas stops, rest breaks, and finding a hotel each night.

For AE firms, strategy is about envisioning a desired future state—say, being known as the go-to sustainable design firm in five major cities by 2030. Tactics involve the steps to make that vision a reality—building partnerships with environmentally conscious clients, hiring LEED-certified experts, or implementing specific carbon-reduction targets in projects. Strategy sets the direction. Tactics manage the execution.

However, strategic planning teams often struggle to maintain this distinction. A strategic goal—such as “becoming a market leader in sustainable infrastructure solutions”—can quickly devolve into tactical discussions about employee certification programs, marketing materials, or which local municipality to bid on next. The session shifts from visionary thinking to an all-too-familiar to-do list.

“What’s the big deal? We need to figure out how to get stuff done!”…(If I had a nickel…) 

Ok, get what done? That’s the point. You need expectations before you can take meaningful strides as an organization. By now, you are no doubt intimately familiar with the laundry list of industry challenges—talent shortages and the associated succession issues, technology disruption, industry consolidation, changing client expectations—and the list goes on. If strategic planning sessions fall into tactical quagmires (i.e., “we need to figure out how to get stuff done”), you risk being unprepared for these challenges. Instead of steering your company toward a resilient future, you ultimately end up scrambling to put out fires when (not if) these industry shifts intensify.

Failing to think strategically is much more than just a missed opportunity—it’s a genuine threat to a firm’s longevity. That’s the big deal.

Examples of strategy gone tactical (fictionalized but true-to-life)

Example 1: The green design firm that got mired in certification details

Let’s say Northeast EcoBuild Inc., a fictional 100-person sustainable design firm, gathers to lay out a five-year strategic plan. Their goal is clear: be the first choice for sustainable design in the Northeast by 2030. But within the first hour, the conversation swerves into discussing LEED certification requirements, organizing green construction training for junior staff, and reworking their “sustainable project” checklist. Instead of mapping the path to becoming a sustainable design leader, they spend hours on granular operational details, missing the bigger picture of how to position themselves uniquely in the market. Ultimately, they leave the session with a list of tactical to-dos but no clear sense of the long-term vision they were trying to fulfill.

Example 2: The infrastructure firm that got stuck on staffing

Another fictional firm, MetroConnect, wants to expand from local transit work into larger national rail projects. The CEO opens the planning meeting by urging everyone to “think big.” But almost immediately, team members jump to logistics—who’ll need to be hired, which certifications are required, and how many project managers each job will need. Two hours in, they’re debating onboarding times and salary bands, a far cry from any strategic discussion about breaking into national markets, identifying potential partners, or assessing competition.

Example 3: The architectural firm that drowned in marketing materials

Finally, consider United UrbanWorks, a fictional 50-person architecture firm that recently declared its ambition to become an “urban revitalization leader.” But as the strategy session unfolds, attention turns to overhauling their website, revamping their logo, and creating “brand-aligned” pitch decks. While branding is certainly important, they’ve lost sight of the core objective: positioning themselves to influence urban spaces and collaborating with city officials and nonprofits. Without that focus, United UrbanWorks ends up rebranding the same old service without making the strategic leap they’d envisioned.

Five practical tips for staying strategic

Avoiding tactical traps requires discipline. Here’s how to keep your team strategically focused during planning sessions:

1. Separate strategy sessions from tactical planning

Schedule separate meetings for tactical planning. Use initial sessions exclusively for strategic discussions, clearly framing the conversation around big-picture goals, future challenges, and market positioning. For instance, if the goal is to “be a leader in sustainable urban design,” avoid discussions on training programs or software until you’ve clarified the vision.

2. Use guiding questions to refocus the discussion

When the conversation veers tactical, ask guiding questions to pull the team back on course. Try questions such as:

• “What’s the big-picture outcome we’re trying to achieve?”
• “How will this make us stand out in the market in five years?”
• “If we achieve this goal, what will be different about our firm?”

3. Create an idea bank

When people inevitably bring up tactical items, store them in an “idea bank” using a whiteboard or digital notes to capture these points without derailing the strategic conversation. Assure the team that these items won’t be forgotten—they’ll just be addressed later, once the strategic goals are clear.

4. Set clear strategic objectives before diving into action items

Before moving to the tactical phase, set three to five major strategic objectives that are specific but high-level enough to inspire action across the organization. For instance, rather than “increase staff certifications,” go for “become the top sustainable infrastructure firm in our region.” Make sure these objectives tie into your firm’s long-term goals and market opportunities.

5. Appoint a “strategy keeper”

Assign someone in the room (or an external resource) to play the role of “strategy keeper.” This person’s job is to steer the conversation back to strategy whenever it drifts into tactics. They can use simple prompts such as, “Is this a strategic move or an implementation detail?” or “How does this relate to our long-term goal?”

Remember, the goal of strategic planning isn’t just to tackle today’s problems. It’s to chart a path toward tomorrow’s opportunities. And for that, you need to linger longer on thinking big and keep your team’s focus firmly fixed on the horizon.

To connect with Mark Goodale about strategic planning, call 508.254.3914 or email [email protected].

Market Snapshot: Election Results

Our research team put together insights from the latest election results:

• Republican candidate Donald Trump won the popular vote by approximately 4.3 million votes.
• In the presidential election, the largest margins of victory were in the District of Columbia (D), Wyoming (R), West Virginia (R), North Dakota (R), and Indiana (R).
• The closest races for president ended up being in Wisconsin, Michigan, Pennsylvania, and Georgia. Next was New Hampshire, which ended up having a closer race than two tossup states (North Carolina and Nevada). Arizona, one of the battleground states, went from a Democratic win in 2020 to a nearly 6% Republican victory.
• Out of the 11 states with the fastest population growth between 2020 and 2023*, the 10 voted Republican in this presidential election. Only one state leaned Democratic (Delaware). Among those same 11 states, two had Democratic wins in their latest U.S. Senate election (Delaware and Arizona). These same states, joined by North Carolina, were also the only ones to have a Democratic win in their latest gubernatorial elections.
• The largest margins of victory in the Senate elections were in Wyoming (R), West Virginia (R), North Dakota (R), Hawaii (D), and Vermont (Ind.).
• Ahead of the Senate elections, Ohio was considered the only tossup state. However, the tightest races for Senate seats ended up being in Michigan, Pennsylvania, Wisconsin, Nevada, and Arizona, all originally Democratic leaning. Of those, only Pennsylvania has had a race called for the Republican candidate. 
• Elections for the U.S. House of Representatives had 15 districts considered tossups. Eight ended up with Republican victories, and seven had Democratic wins. Three Democratic-leaning districts turned Republican (California 47^th, Nebraska 2^nd, and Pennsylvania 7^th).
• For gubernatorial elections, New Hampshire was the only one to be considered a tossup and ended up with a Republican victory.

*Fastest-growing states are based on a compound annual growth rate between 2020 and 2023 of 1% or higher. Includes the following 11 states: Idaho, South Carolina, Florida, Texas, Montana, Utah, Delaware, Arizona, North Carolina, South Dakota, and Tennessee.

To learn more about market intelligence data and research services offered by Morrissey Goodale, schedule an intro call with Rafael Barbosa.

Weekly M&A Round Up

Two new deals in the Southeast: Last week we reported two deals in the Southeast along with another sale of an ENR Top 500 firm in Orcutt | Winslow (Phoenix, AZ) (ENR #402), which received an investment from Grace Hebert Curtis Architects (Baton Rouge, LA). Overseas, we reported 14 deals. You can check all the week’s M&A news here.