Word on the Street: Issue 234

Three Perfect Days in Miami—Wednesday & Thursday Recap

Over 230 AE industry executives, investors, and experts gathered in Miami last week for our 11^th annual Southeast M&A and Business Symposium for three days of networking and learning. 

Making new connections, catching up with old friends, and some early-stage deal-making were front and center on Wednesday evening at the always fun opening reception overlooking beautiful Biscayne Bay. Then, in a new symposium feature for 2025, it was on to three networking dinners hosted by Morrissey Goodale Principals Nick Belitz, Brendon Cussio, and Jon Escobar at some of Miami’s hottest restaurants. (Programming note: The demand for these dinners blew us away. It’s still unclear whether it was the popularity of the three hosts (highly unlikely) or the opportunity for some exclusive networking (yup, that’s it) as to why they were so popular. Regardless, we will host these dinners again on the Strip in Las Vegas this June at our Western States M&A and Business Symposium.)

Thursday kicked off with a networking breakfast, followed by a packed day of presentations, panel discussions, and an Excellence in Acquisitive Growth Awards ceremony as follows:

Opening Remarks—Mark Goodale

I opened the symposium by highlighting the AE industry’s decade-long expansion, with revenues and profits growing nearly every year since 2014. Firms have remained resilient despite economic shifts and talent shortages, leveraging AI, automation, and capital investments to drive transformation, while booming markets such as energy, water, and transportation fuel optimism. M&A continues to be a key driver, with 5,600 deals over the past 11 years unlocking billions in value. 

State of the Industry—Nick Belitz

Setting aside the noise of the daily news, Megan Miller (Deltek) and I took the stage to bring the latest and greatest financial metrics to bear to report on the “State of the Industry” as of early 2025. All told, AE industry firms are doing very well, and some are reporting their best years ever, although some firms have let collections slide and backlogs have softened in some specific verticals, such as corporate and commercial design. But the outlook is resoundingly positive, and firms are investing in people, acquisitions, and technology to make hay while the sun shines.

Future of the Industry CEO Panel—Mark Goodale

Karen Erger (Lockton) and I hosted a panel of terrific CEOs that included Javier A. Baldor, CEO of BST Global; Bob Higgins, chairman of Barge Design Solutions (Nashville, TN) (ENR #167); Mick Renshaw, founder and CEO of Trilon Group (Denver, CO); and Bret Weiss, president/CEO of WSB (Minneapolis, MN) (ENR #134). The lively conversation explored technology adoption, strategy, industry consolidation, leadership development, and the impact of policy shifts—and ignited many questions from the audience. It also highlighted challenges and opportunities tied to the industry’s legacy pricing and contracting models—characterized as “a race to the bottom”—and the urgent need to shift toward a value-based approach rather than one focused on billable hours.

Most Prolific and Proficient Acquirer Award Ceremony—Mark Goodale

Morrissey Goodale’s Excellence in Acquisitive Growth Awards series honors the industry’s top acquirers shaping the future of consolidation. This year, the Most Prolific and Proficient Acquirer Award was presented to Trilon Group (Denver, CO) in recognition of its leadership in strategic growth. Accepting the award on behalf of Trilon were CEO Mick Renshaw and Chief Corporate Development Officer Tom Secker.

2025 Most Prolific and Proficient Acquirer Award presented to Trilon Group
From left to right: Mark Goodale, Mick Renshaw (Trilon Group), Tom Secker (Trilon Group), Brendon Cussio, Jon Escobar

M&A Trends and Valuation—Nick Belitz/Jon Escobar

Against a backdrop of historically high levels of consolidation, we laid out the drivers of current M&A activity and expectations for the future. Seeing no immediate headwinds to deal-making given robust demand from buyers to expand to new geographies and services and sellers eager to capitalize on strong valuations and opportunities for growth, we discussed the factors favoring sustained M&A activity. While interest in deal-making abounds, opportunities are highest in the “sunny southern” states of the U.S. Southeast.

1000 Club—Brendon Cussio

I was joined by three fantastic colleagues—George Christodoulo, a partner with Lawson & Weitzen; David Sullivan, a partner with PKF O’Connor Davies; and Dominic Vitucci, CEO of SPRX Technologies—on the “1000 Club” panel hosted by Morrissey Goodale’s Sarah Thornhill to discuss the key aspects of deal-making from a tax, legal, and business perspective. The panel started with us discussing ways that sellers can get their houses in order prior to going to market, continued with us sharing best practices during the LOI and due diligence process, and wrapped up with our best advice for firms contemplating selling in the next one to three years. It was a great panel filled with critical information for deal-makers, whether buying or selling.

Thursday wrapped up another reception by Biscayne Bay, followed by more networking dinners hosted by the Morrissey Goodale principals. An early night was had by all.

Three Perfect Days in Miami—Friday Recap

After a tropical fruit-themed networking breakfast, the symposium took on a whole new “look” Friday morning with three concurrent M&A and capitalization interactive panel discussions followed by four Let’s Get Down to Business workshops. Here’s a recap of the day:

Buyers and Sellers Share Their Stories—Nate Wentworth

I moderated the “Buyers and Sellers Share Their Stories” panel and was joined by Kurt Bergman, CEO of PRIME AE Group (Baltimore, MD) (ENR #229); Bruce Lilker, senior client executive MEP – healthcare and education at IMEG (Rock Island, IL) (ENR #52); Mike Munn, president and CEO of McAdams (Raleigh, NC) (ENR #262); and Tracy Scott, administrative director for Florida at McAdams. These panelists shared their experiences and lessons learned buying and selling architecture, engineering, and environmental businesses. Mike Munn said it best when asked how McAdams has assessed cultural fit: “You don’t marry someone hoping to change them.” Find firms that are like yours to ensure cultural alignment and long-term success while fulfilling your firm’s strategic plan and continuing to grow and create opportunities.

Integration Best Practices—Sarah Thornhill/David Thornhill

We moderated the “M&A Integration Best Practices” panel where Casey Bello, M&A manager, corporate services of Terracon (Olathe, KS) (ENR #18), and Dan Huntington, executive vice president, M&A Synergy Team of IMEG (Rock Island, IL) (ENR #52), shared insights from their firms’ successful strategies, drawing on their experiences as past Excellence in Acquisitive Growth Award winners. Bello emphasized integration is not a one-size-fits-all process and everything needs to be contextualized to the acquired firm, while Huntington highlighted the importance of communication and developing trust throughout the process. Together, they provided a comprehensive roadmap for post-merger success, offering practical advice to firms looking to maximize value through strategic acquisitions.

Investing in the Industry: A Private Equity Perspective—Jon Escobar

I moderated the “Investing in the Industry: A Private Equity Perspective” panel with Bernhard Capital partner Chris Dillon and SkyKnight Capital principal Victoria Potter. We explored why private equity has rapidly expanded in the AE industry, what makes a firm an attractive investment, and how PE-backed platforms are driving enterprise value post-acquisition. Our discussion covered everything from the increasing competition for deals and evolving valuation dynamics to leadership alignment, cultural integration, and the long-term outlook for private equity in the industry.

Seven Ways to Increase Your Firm’s Value in Seven Months—Nate Wentworth

In my workshop, I emphasized seven strategies to increase a company’s value in seven months, including increasing utilization by optimizing resources and minimizing non-billable tasks, reducing overhead by negotiating contracts and shifting to hybrid work environments, and speeding up collections through clear invoicing procedures. I also highlighted the importance of diversifying the business (e.g., new service offerings, end-markets, geographies, etc.), improving financial reporting for better decision-making, and focusing on specific growth strategies. Lastly, I outlined immediate, medium-term, and long-term action items to ensure sustained growth and value creation as well as exit options for shareholders.

Strategy: Take Time to Work ON Your Business and Not Just IN It—Sarah Thornhill/Rafael Barbosa

During our strategy workshop, we guided leaders through the concepts of strategic and operational thinking, as well as mission, values, and vision. Small groups participated in a brief VRIO exercise, evaluating fictitious firms’ internal resources as a practical example of how this analysis fits into the strategic planning process. We concluded with an overview of market intelligence and research, highlighting how these tools can support and strengthen the strategic planning process.

Ownership Transition: Simple, Not Easy—Allie Tepper

I had great fun leading an intimate discussion for firm leaders, each seeking to jump-start their ownership transitions. We tackled all the critical elements: identifying gaps and assessing the next generation, laying the operational groundwork, structuring and financing transactions, and valuation fundamentals. Participants especially valued the three thought-provoking, hands-on exercises and found they clarified their firms’ goals and readiness to achieve them.

AI for the AE CEO: Making AI a Competitive Advantage for Your Firm—Stafford Palmieri Sievert

I led a workshop on AI to help AE CEOs and other AE leaders know enough to be dangerous so they can make high-value changes as soon as next week. I presented the basics of what AI can and can’t do; concrete ways in which AI can drive efficiency, creativity, and risk mitigation; a data maturity model to help participants evaluate how ready they are to implement AI in the first place; and the cybersecurity and privacy risks to look out for. Then we explored practical ways to get started—whether your firm is just getting into AI or is far down the track—and how to evaluate the return on investment (ROI) for your data and AI investments.

We would like to express our sincere gratitude to our partners and sponsors for helping to produce the symposium as follows: Deltek, SPRX, Lockton, BST Global, CTA, Full Sail Partners, Ames & Gough, Lawson & Weitzen, PKF O’Connor Davies, Morningstar Law Group, ACEC Florida, ACEC Louisiana, ACEC South Carolina, and ACEC Tennessee. We’d also like to thank all of our industry exhibitors: ACEC Retirement Trust, ClientSavvy, CohnReznick, and Quire.

Things are changing fast in the AE industry. To stay on top of the latest developments and to make the connections you need to advance your firm, join us and over 200 AE industry executives, investors, and experts at our 11^th annual Western States M&A and Business Symposium at the stunning Wynn Resort in Las Vegas on June 11-13. Registration is open now.