Word on the Street: Issue 235

Western States M&A by the Numbers

Since 2018, the 12 Western states have consistently accounted for approximately one-quarter of all annual domestic M&A transactions. Over the past seven-plus years, some 750 design and environmental consulting firms have merged or been acquired in the West. As we prepare for the 11^th annual Western States M&A and Business Symposium, the Morrissey Goodale research team has prepared this assessment of how consolidation is playing out in the West on a state-by-state basis ranked in order of M&A activity. 

• California: The Golden State continues to be the “Big Kahuna” of M&A west of the Rockies. The state averages 44 transactions a year, placing it in a perennial three-way, deal-making race with Texas and Florida. Indeed, in any given year, California accounts for about 11% of all domestic consolidation. When firms look to establish a full national business model, they have to be in California. And for most national firms, the preferred mode of entry into the market is via acquisition. The state’s busiest year on record was 2021 when we recorded 63 transactions. Year-to-date, California has seen 10 announced deals with the most recent being the acquisition of Paradigm Environmental (San Diego, CA) by Ulteig (Fargo, ND) (ENR #116). Last year, one of the more notable deals in the state involved the April acquisition of Project Navigator (Tustin, CA) by Verdantas (Dublin, OH) (ENR #113), one of our “Ten Movers and Shakers to Watch in 2025.”
• Colorado: The Centennial State is typically the second- or third-most active Western state when it comes to M&A, averaging 16 transactions per year. Last year was busier than usual with 23 deals announced. This year is off to a fast start with three deals already on the books, one of which was the acquisition of Reliable Power Consultants (Fort Collins, CO) by Hunt, Guillot & Associates (Ruston, LA) (ENR #364).
• Washington: There have been 84 transactions in the Evergreen State since the beginning of 2018. Last year was the most active in the state’s history with 20 announced deals. Already in 2025, there are two deals on the books, with one of those being the acquisition of 48 North Solutions (Issaquah, WA) by Environmental Science Associates (San Francisco, CA), ENR’s #103 Top Environmental Firm.
• Arizona: Since it’s the westernmost state of the fast-growing, business-friendly “Smile” region (composed of those states stretching from the Southeast along the Gulf Coast and bordering Mexico), it’s no surprise that the Grand Canyon State has experienced robust consolidation over the past decade. Of the 50 transactions that have happened in the state since 2018, 19 of those took place in 2022. Last year was another relatively busy year for Arizona deal-making with nine announced transactions. The most recent transaction in the state was this year’s acquisition of Terrascape Consulting (Phoenix, AZ) by Atwell (Southfield, MI) (ENR #71), one of our “Ten Movers and Shakers to Watch in 2025.”
• Oregon: The Beaver State is the next most active in the West in terms of consolidation with 46 transactions since 2018. Nine of these took place as the state emerged from the pandemic during 2021. Consolidation in the state is off to a quick start in 2025 with five transactions already announced this year, up from just a solitary deal in the same period in 2024.
• Nevada: There have been 31 transactions in the Silver State since 2018. Consolidation in the state was relatively slow last year with just two transactions announced. However, we’ve already seen one transaction this year with the acquisition of Headway Transportation (Reno, NV) by GCW Engineering (Las Vegas, NV).
• Idaho: The Gem State has seen 24 transactions since 2018 with a quarter of those happening in 2024 alone. One of those deals last year involved the acquisition of AEI Engineering Incorporated (Coeur d’Alene, ID) by J-U-B Engineers (Meridian, ID) (ENR #235). The state has already seen one deal announced in 2025 with the acquisition of EcoAnalysts (Moscow, ID) by Spheros Environmental (Denver, CO), ENR’s #188 Top Environmental Firm.
• Utah: It’s no surprise that, as one of the fastest-growing states, 2024 was the busiest year for industry consolidation in the Beehive State with five transactions announced. Post-pandemic, the state has seen a step function in annual deal activity, averaging four a year (compared with one a year pre-2020). The most recent deal in the state took place in February with the acquisition of Advanced Bridge Inspections (American Fork, UT) by Infrasense (Woburn, MA).
• Montana: There have been 15 transactions in the Treasure State since 2018. Last year was the busiest on record for transactions with four deals announced—double the pace of the prior year. One of those deals announced in 2023 was the merger of Sanderson Stewart (Billings, MT) with Bellecci & Associates (Concord, CA).
• Alaska: The Last Frontier averages one transaction per year. The busiest years for deal announcements in the recent past were 2018 and 2021—with two transactions in each year. The most recent deal in the state took place last year with the acquisition of RIM Architects (Anchorage, AK) by GHD (Sydney, Australia) (ENR #27).
• Wyoming: The Cowboy State is relatively laid back when it comes to industry M&A—recording just six transactions over the past seven years. Last year was one of its busier 12-month periods with two announced deals, including the acquisition of Sage Civil Engineering (Cody, WY) by J-U-B Engineers (Meridian, ID) (ENR #235).
• Hawaii: The Western state seeing the fewest number of deals is Hawaii. Since 2018 there have been only five recorded transactions in the Aloha State. The most recent deal in the state involved the acquisition of ECS, Inc. (Honolulu, HI) by Coffman Engineers (Seattle, WA) (ENR #157).

Traditionally, consolidation in the West has been viewed as consisting of three tiers of M&A cadence with Tier One being California, Colorado, and Washington; Tier Two composed of Oregon, Arizona, Nevada, and Idaho; and Tier Three including Utah, Montana, Alaska, Wyoming, and Hawaii. In general, this dynamic has reflected (a) more limited exit/transition options and (b) relatively lower valuations for firms in Tiers 2 and 3. Going forward, however, we see things changing somewhat. Continued growth in Utah will see increased demand for acquisitions in the state with resulting increases in firm values. And we anticipate that over the next four years increasing demand for firms with either mining competencies and/or connections with mining enterprises will translate into more consolidation in Tiers 2 and 3.

Over 200 AE industry executives, investors, and experts will gather at the five-star Wynn Resort in Las Vegas from June 11-13 for the 11^th annual Western States M&A and Business Symposium. The symposium agenda is once again packed with presentations, interactive panels, workshops, networking receptions, an Excellence in Acquisitive Growth Award ceremony, and exclusive CEO networking dinners on the Las Vegas Strip. Reserve your place today and save. Early-bird registration is available until April 18.

You can contact Mick Morrisey at [email protected] or 508.380.1868.

How Many People Should Be On Your Strategic Planning Committee? Well, It Depends.

Here’s a question I get asked a lot from AE industry CEOs who are getting ready for strategic planning: “How many people should be on our strategic planning committee?”

It’s a good question. It’s also a loaded one.

Because the right number? Well, it depends.

Size Matters (But Not How You Think)

First, let’s get this out of the way: Bigger isn’t always better.

Yes, there are reasons to go big. If you need to build firm-wide buy-in, generate excitement, or make people feel included, then sure—bring in 12 to 16 people or so. Let them mix ideas, debate priorities, and emerge from the process feeling personally invested in the plan.

But let’s not get carried away. Once you cross into the upper 20s, your “strategic planning committee” starts looking more like an unruly town hall. Decision-making slows, conversations lose focus, and suddenly, you’re spending half the session explaining things to people who didn’t do the pre-read. Worse, you end up with passengers instead of drivers—people who nod along but aren’t really steering the firm’s future.

On the flip side, if you’re tackling sensitive topics—phasing out a struggling business line, managing succession issues, or addressing other delicate matters such as non-performance at high levels in the organization—then a tighter group of four to six is ideal. You need decision-makers, not spectators.

Who’s In? And Just As Important—Who’s Out?

So now that you know how many, let’s talk about who should actually be in the room.

The right mix often includes:

• Senior leaders: They bring experience, understand the firm’s history, and know where the bodies are buried.
• Young risers: These are your future leaders. They’ll be executing this plan long after the strategic planning binder has been lost under a stack of old RFPs.
• Cross-functional voices: You don’t need someone from every department to “represent” their business unit. This isn’t Congress. But you do need people who can provide firm-wide perspective.

And if you’re in a firm of 500+ people? Consider keeping the top brass (CEO, COO, maybe a couple of key execs) on the sidelines as a review committee. They’ll provide direction without micromanaging every decision. Think direction, not directions.

Rules of Thumb for Building Your Team

Here’s how you can frame your team without over-engineering the process:

1. Four to six people for tough, sensitive, high-stakes conversations
2. Twelve to sixteen for a typical level of group involvement
3. Lower to mid-20s for growth imperative brainstorming
4. Keep it under 30 unless your goal is to test the limits of human patience

And once you’ve got the right group, the next question is: What are their roles?

Roles: Who Does What?

The CEO

• If you’re using an external facilitator, the CEO should set the tone, reinforce the importance of the process, and then (brace yourself) get out of the way.
• If it’s an internal process, the CEO needs to balance leadership with listening. Nothing kills honest conversation faster than a CEO dominating every discussion.

Senior Leaders

• Provide historical context, industry perspective, and operational realities.
• In an externally facilitated process, they should challenge assumptions and help refine strategy without hijacking the conversation.
• In an internally led process, they need to be extra disciplined—otherwise, it can feel like “management’s plan” rather than a firm-wide strategy.

Young Risers

• They bring fresh thinking and a different lens on the firm’s future.
• Their job is not to rubber-stamp what senior leadership says, but to engage, question, and inject new ideas.
• If led externally, their role is to contribute openly without fear of hierarchy. If led internally, they need encouragement (or if necessary, explicit permission) to challenge the status quo.

The Wrap

So, how many people should be on your strategic planning committee?

It depends. But whether it’s four, sixteen, or somewhere in between, the real key is picking the right people, setting the right roles, and making sure your committee is a team of drivers—not passengers.

Now, go build your team. And keep it tight.

For help with your firm’s strategic planning process, contact Mark Goodale at 508.254.3914 or [email protected].

Market Snapshot: West Virginia

50 states in 50 weeks – This series leverages our market intelligence database to bring you powerful AE industry insights. Each week, we highlight a new state in green while previously featured states fade to a lighter green. Next, let’s look at West Virginia.

West Virginia Economic Performance and Outlook Grade*: D-

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

* Overall grade is assigned based on a curve (relative to all states’ performances).

West Virginia’s infrastructure is being reshaped by major investments in transportation and energy. According to the West Virginia Department of Transportation (WVDOT), ongoing construction projects are valued at over $4 billion. The state is aggressively working to modernize its transportation infrastructure, particularly its aging bridge network—one of the worst in the nation in terms of poor-condition bridge area. State leaders expect substantial improvement in upcoming national infrastructure report cards due to these upgrades. West Virginia also ranks among the top 10 states for private nonresidential construction spending growth, highlighting increased demand for design and construction services across commercial, industrial, and institutional sectors. On the energy front, the state is a national leader in fossil fuel production and is gaining momentum in clean energy jobs. West Virginia ranks sixth in energy-related GDP as a share of its total economy and has seen the fifth-fastest growth in that sector since 2020. It also ranks in the top 10 for job growth in both renewable energy and energy efficiency fields—creating opportunities for firms working in environmental consulting, transmission upgrades, and building performance. See below for regional highlights in West Virginia:

• Charleston: The capital region is seeing infrastructure upgrades, including road and water system improvements, supporting downtown redevelopment and state government facilities.
• Huntington: Investments in port and rail infrastructure are enhancing the city’s role in freight logistics and multimodal connectivity. The city has seen a surge in new business establishments.
• Morgantown: Driven by West Virginia University and related research hubs, the region is expanding in health care and innovation-related facilities.
• Parkersburg: Public-sector projects, including courthouse and school renovations, are generating AE service demand.
• Martinsburg: Proximity to the D.C. metro is driving growth in residential, transportation, and utility infrastructure, especially around I-81 and MARC commuter access.

For sector-specific data and insights for West Virginia 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, you can access the 2025 AE Market Intelligence Webinar (recorded on January 28). Click here for details.

Weekly M&A Round Up

Industry M&A is up 3% over the past 12 months: While still up over the past 12 months, deal-making has slowed in the past 90 days. To find out why, and gain insights into the latest industry trends and best practices, join over 200 AE industry executives and investors at the 11^th annual Western States M&A and Business Symposium at the five-star Wynn Hotel in Las Vegas this June. Early-bird registration is now open! You can check all the week’s M&A news here.