Word on the Street: Issue 227

Ten Movers and Shakers to Watch in 2025

Last year was the second-most active on record for industry consolidation, with 464 design and environmental consulting firm acquisitions announced. That was an increase of almost 3% over the prior year but still lagged the record year of 2022 when there were 487 deal announcements. We expect industry M&A to return to record levels this year, driven on the supply side by a wave of baby-boomer and Gen-X sellers seeking capital for growth and ownership transition and on the demand side by strategic buyers and investors looking for both growth and superior returns on investment.

Amid all the consolidation noise last year, there were 10 fast-growing firms that really stood out. Today we look at these 10 Movers and Shakers that announced the most acquisitions in 2024. Among them, they announced 85 “amalgamations” (as some of our overseas friends refer to transactions) last year. Collectively they were responsible for a whopping 18% of the industry consolidation that took place in 2024. Let’s take a closer look at these 10 industry Movers and Shakers.

1. Trilon Group (Denver, CO): This year’s recipient of the Most Prolific and Proficient Acquirer Award announced 12 acquisitions in 2024. These came either directly through Trilon or via nine of its thirteen “partner” firms. Since its founding just three years ago with a vision to “build the next top 20 design firm in North America,” Trilon has grown to over $1 billion with more than 5,000 employees. On the relative importance of acquisitions for the firm’s success, CEO Mick Renshaw said in my recent interview with him, “We believe organic growth provides the greatest opportunity to help advance our people’s careers. While mergers and acquisitions are integral to our strategy, they serve as a catalyst to accelerate organic expansion.” Last year, the firm added over 800 employees through its announced acquisitions of firms headquartered in CT, GA, VA, IL, TN, MA, NV, NJ, OH, PA, and UT.

2. IMEG (Rock Island, IL) (ENR #52): Employee-owned industry leader and recipient of the 2023 Most Prolific and Proficient Acquirer Award, IMEG announced 12 acquisitions in 2024. The firm’s most recent acquisition of specialized engineering and energy management consultancy Optimized Systems (Omaha, NE) was part of its continued growth to more than 2,800 team members, 100-plus offices, and revenues of over $500 million. Last year, IMEG climbed five places on the ENR Top 500 Design Firms list and added over 500 employees through announced acquisitions of firms headquartered in TX, ID, NY, WA, NH, MI, MN, CO, NC, CT, and NE.

3. Verdantas (Tampa, FL) (ENR #113): Backed by private equity firm Sterling Investment Partners, this integrated environmental science, engineering, and consulting firm with over 1,750 employees and 80 offices announced 10 acquisitions last year. The firm’s April acquisition of Project Navigator (Tustin, CA) allowed it to add strategic management and project coordination services for federal (CERCLA) and state Superfund sites. Over the course of 2024, Verdantas added over 700 employees from its announced acquisitions of firms in CA, FL, OH, MD, VA, CO, and PA. Verdantas jumped 36 places on last year’s ENR Top 500 Design Firms list.

4. LJA Engineering (Houston, TX) (ENR #67): This employee-owned, full-service, multi-disciplinary engineering and infrastructure solutions firm with over 2,500 employee-owners located in over 65 offices nationwide announced 10 acquisitions last year. Four of these—Lonestar Program Controls Group LLC (New Braunfels, TX), Delta Land Surveying (Lubbock, TX), McDonough Engineering (Houston, TX), and Quest Utility Construction (San Antonio, TX)—were in LJA’s home state of Texas. The firm added almost 400 employees through its announced acquisitions of firms headquartered in AZ, FL, SC, TX, GA, and AL. LJA fell three positions on the 2024 ENR Top 500 Design Firms list.

5. NV5 (Hollywood, FL) (ENR #24) (NASDAQ: NVEE): This leading provider of technology, conformity assessment, and consulting solutions for public- and private-sector clients supporting infrastructure, utility, and building assets and systems announced nine acquisitions last year. The most recent of these was Global Fire Protection Group (Chadds Falls, PA). In 2024, NV5 added almost 200 employees through its announced acquisitions of firms headquartered in FL, NC, IL, CA, WA, UT, CT, and PA. The firm fell two places on last year’s ENR Top 500 list.

6. Bowman Consulting Group (Reston VA) (ENR #78) (NASDAQ: BWMN): Last year’s recipient of the Most Prolific and Proficient Acquirer Award announced eight acquisitions in calendar 2024, including that of bridge designer Exeltech (Lacey, WA) in October. Bowman added close to 300 employees in VT, NE, MO, NJ, CO, WA, and FL through the acquisitions it announced in 2024. The firm rose nine places on the ENR Top 500 Design Firms list. 

7. Salas O’Brien (Irvine, CA) (ENR #39): This employee-owned industry leader and recipient of a 2023 Best Post-Transaction Performance Award announced seven acquisitions last year, adding close to 600 employees in firms headquartered in WI, TN, AL, MO, TX, and NC. The largest of its seven acquisitions was that of 250-person I.C. Thomasson (Nashville, TN) (ENR #276) in March. With 90-plus locations across North America and over 3,800 employees, the firm also announced a strategic minority investment by Blackstone to help accelerate its continued expansion. Salas O’Brien jumped 15 places on the ENR Top 500 list.

8. Terracon Consultants (Olathe, KS) (ENR #18): Now celebrating its 60^th year in business, this $1 billion plus, employee-owned industry leader with over 6,000 employees announced six acquisitions last year. Two of these acquisitions—Flat Earth Archeology (Cabot, AR) and Metcalf Archeological Consultants (Golden, CO)—further strengthened its thriving archeological business. Terracon, the recipient of the 2023 Most Innovative Acquirer Award, added over 160 employees through these acquisitions of firms headquartered in TX, RI, AR, and CO. The firm rose two places on the ENR Top 500 list.

9. 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 announced six acquisitions last year. Two of these—90-employee Banks Engineering (Fort Myers, FL) and 50-employee Biscayne Engineering (Miami, FL)—further strengthened the firm’s presence in Florida. The firm added over 250 employees in FL, DE, AZ, LA, and CO and climbed three spots on the ENR Top 500.

10. True Environmental (New York, NY): Founded in late 2022 and backed by Halle Capital, this industry platform for environmental consulting and engineering companies grew rapidly in 2024 with five announced transactions. With a stated vision to grow to be a high-performing, best-in-class company with $400-$500 million in annual revenues through a combination of acquisitions and robust organic growth within five years of its founding, the firm added close to 200 employees through its 2024 announced acquisitions in ID, CT, TX, CA, and VA.

Why the focus on employee count? It’s no secret that one of the biggest challenges that our clients and the industry face heading into 2025 continues to be finding and keeping good talent. (If you feel like you’ve been hearing this same story for over a decade, you’re not wrong.) Over 56% of the attendees already registered for our upcoming Southeast M&A and Business Symposium this March cite hiring and retention as their #1 business issue. However, these 10 Movers and Shakers are skillfully using acquisitions to find talent (as well as open up new markets and geographies and shore up service capabilities). Among them, they added over 4,000 new employees in 2024. This is a testament to their human resources teams and systems. Equally important, as skilled acquirers they are also driving down their annual staff turnover rates. Our Excellence in Acquisitive Growth research shows that skilled acquirers see voluntary turnover rates cut by almost one-fifth a year into their transactions. One reason for this is that these 10 firms are creating more opportunities for the new employees post-transaction. Another is that these firms are bringing improved benefits to employees at a lower cost to them as individuals.

Just how good are these 10 firms? These 10 leading industry firms are not only really good at serving their clients and creating opportunities for their employees, they are also extraordinarily skilled at acquiring and integrating firms. One of the most remarkable features of these firms is the cadence of their acquisitions. To illustrate that point, prior to 2018, the most active acquirers in the industry each made an average of two (yes, two) acquisitions a year. Each of these 10 firms is sourcing and onboarding acquisitions at a markedly higher pace. It’s a testament to the competency of their corporate development teams.

What’s missing? Last year there was a notable absence of any single Mover and Shaker from overseas. We’ve a hunch that may change over the next year. 

Want to know more? At the 11^th annual Southeast M&A and Business Symposium in Miami this March you’ll hear C-suite executives from Movers and Shakers Trilon, IMEG, and Terracon share their perspectives on both the future of the industry and integration best practices. You’ll also have the opportunity to network with executives from Movers and Shakers Atwell, LJA Engineering, Salas O’Brien, and True Environmental as well as hundreds more from North American and regional firms.

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

7 Steps for Adapting to Rapid Change Under the Trump Administration

The ink has barely dried on President Donald Trump’s latest executive orders, yet firms across industries are already scrambling to adjust. Immigration hotlines are springing up, “war rooms” are buzzing with strategy sessions, and supply chain teams are bracing for potential ripple effects. The Wall Street Journal recently highlighted how large corporations such as JPMorgan Chase and 3M are reacting swiftly to these changes, setting up dedicated teams and trackers to make sense of the rapidly evolving landscape. But this isn’t just a playbook for the Fortune 500. AE firms face many of the same challenges—and opportunities—and need to act just as decisively to navigate the shifting terrain.

In an environment where policy shifts can feel like they’re coming at lightning speed, the key to thriving is preparation, adaptability, and a clear focus on where your firm adds the most value. Whether it’s the potential for tariffs, immigration adjustments, or shifts in energy and infrastructure spending, AE firms must take a proactive approach to navigate the changing landscape.

Here’s how you can ensure your firm is ready to face these challenges head-on:

Step 1: Establish Your Own Situation Room

Success begins with clarity, and that means assembling a small, focused team to track developments that matter most to your firm. The “situation room” concept isn’t about panic—it’s about preparedness. Assign leaders from different areas of your business—finance, operations, and business development— to monitor how policy changes might impact your firm’s projects, clients, and bottom line.

For example, if tariff changes increase the cost of imported materials, how will that impact your project budgets? If immigration policies shift, what will it mean for your talent pipeline? Proactively identifying these risks is the first step toward mitigating them.

Think about it: Your situation room isn’t just about identifying threats; it’s also about spotting opportunities. Federal infrastructure spending, for instance, could bring significant opportunities for firms with expertise in transportation, water, and energy projects.

Step 2: Build Relationships in the Right Places

With infrastructure likely to be a major focus of the Trump administration, relationships with government agencies, private developers, and industry associations are more critical than ever. This isn’t the time to wait for opportunities to come to you—it’s the time to position your firm as a go-to resource for navigating new regulatory and funding landscapes.

Federal dollars might be earmarked for infrastructure, but competition for those funds will become even more fierce. By staying connected to decision-makers and industry stakeholders, you’ll give your firm a competitive edge in securing new projects.

Think about it: Organize client webinars or workshops to demonstrate your expertise in handling complex, policy-driven projects. These events can solidify your position as a trusted advisor.

Step 3: Safeguard Your Talent Pipeline

Immigration policy adjustments could have a direct impact on your workforce. If your firm relies on H-1B visa holders or other foreign-born professionals, it’s time to develop contingency plans. At the same time, these changes might create opportunities to strengthen relationships with local universities and training programs to build a domestic talent pipeline.

Retaining your current team is equally important. Open communication about how your firm is navigating these changes will go a long way toward easing concerns and keeping morale high.

Think about it: Consider partnering with an immigration attorney or consultant to ensure your compliance and help employees navigate any changes.

Step 4: Prepare for Supply Chain Volatility

If tariffs are implemented, the cost of materials could rise, impacting everything from structural steel to concrete and electrical components. Firms that plan ahead will be best positioned to handle these disruptions.

Begin by evaluating your existing contracts. Are you protected from unexpected price increases? Do you have the flexibility to renegotiate supplier terms or adjust your sourcing strategies? Being upfront with your clients now about potential cost escalations will save headaches later.

Think about it: Develop alternative sourcing strategies to ensure your projects stay on track, even if tariffs disrupt your usual supply chains.

Step 5: Stay Agile in Energy and Sustainability

Energy policy changes might signal a pivot toward traditional energy sources, but private-sector interest in sustainability and renewable energy isn’t going away. AE firms that demonstrate expertise in energy-efficient design and resilient infrastructure will remain in demand, particularly in states with strong commitments to environmental goals.

At the same time, pay close attention to federal funding opportunities. Shifts in energy priorities might bring new opportunities for firms willing to adapt to the changing landscape.

Think about it: Evaluate how your firm can position itself as a leader in both traditional and sustainable energy design, ensuring you’re prepared to capture work in both sectors.

Step 6: Communicate with Confidence

Your employees, clients, and partners are looking to you for leadership. That doesn’t mean you need to have all the answers—but it does mean you need to be transparent about how your firm is responding to rapid changes. Regular updates can ease uncertainty and foster trust, both internally and externally.

Make communication a two-way street. Encourage employees and clients to share their concerns and questions so you can address them directly. Showing that you’re listening is as important as sharing your own insights.

Think about it: Use weekly memos, town halls, or video updates to keep everyone informed. Transparency builds trust, and trust builds loyalty.

Step 7: Think Long-Term, Act Short-Term

While it’s tempting to focus exclusively on immediate challenges, don’t lose sight of the bigger picture. The Trump administration’s policy changes may create new markets for AE firms, from climate-resilient infrastructure to advanced manufacturing facilities.

Now is the time to ensure your firm’s long-term strategy aligns with these emerging opportunities. Whether that means investing in new capabilities, forming strategic partnerships, or exploring new markets, staying proactive will position your firm for sustained success.

Think about it: Engage in scenario planning to test your firm’s readiness for different policy outcomes. Flexibility is your best defense against uncertainty.

Every administration brings change, but the speed and scope of these shifts require a new level of agility. Get out in front of it.

Contact Mark Goodale at 508.254.3914 or [email protected].

Market Snapshot: Alabama

50 states in 50 weeks – The new series leverages our vast market intelligence database to bring you powerful AE industry insights. We continue our series this week with Alabama.

Alabama Economic Performance and Outlook Grade: C+

• Economy: C+
• Population: B
• Workforce: C
• Financial/Fiscal Health: C

Alabama’s economy is supported by strong manufacturing, automotive, aerospace, and energy sectors, with a 2024 real GDP of $251 billion growing at a 3.1% rate since 2020. While the state faces challenges with one of the lowest rates of labor force participation (57.6%) in the country, key investments are being made to modernize transportation and utilities infrastructure. With its strategic location, access to major highways, rail systems, and the Port of Mobile, Alabama is well-positioned for growth as a key industrial and logistics hub in the Southeast. The state’s significant federal defense presence has the potential to attract investments in advanced manufacturing facilities, distribution centers, and intermodal transportation networks. See below for additional highlights for Alabama:

• Strategic regions: Birmingham-Hoover Metro, Huntsville, and the Mobile Port Corridor
• Birmingham: Growth in health care and financial services driving demand for commercial developments and mixed-use projects
• Huntsville: Expansion of federal defense contracting, aerospace industries, and research facilities, creating opportunities for industrial and office developments
• Mobile: Investments in port modernization and logistics infrastructure supporting industrial growth and global trade
• Montgomery: Automotive manufacturing and innovation hubs spurring demand for industrial and workforce-related real estate
• Tuscaloosa: Growth in educational facilities and infrastructure tied to the University of Alabama’s development initiatives

For sector-specific data and insights for Alabama or questions about our market intelligence and research services, call/text Rafael Barbosa at 972-266-4955 or email [email protected].

For a comprehensive outlook for 2025, don’t miss the 2025 AE Market Intelligence Webinar on January 28. Click here for details.

Weekly M&A Round Up

A total of 16 domestic transactions were announced last week: With three new deals in the Southeast last week, industry M&A activity is now up 5% over the past year. Last week, domestic deals were announced in GA, CO, AL, FL, ME, ID, NH, OH, CA, NJ, IN, OR, IL, PA, and MI. Globally, we reported transactions in Ireland, Italy, Canada, Spain, and the UK. You can check all the week’s M&A news here.