Word on the Street: Issue 240

We Belong Together

The application window for the 2025 M&A Best Practices Award, part of our Excellence in Acquisitive Growth Awards Series, is open until midnight on Friday, May 9. Award applicants describe a process, initiative, technique, or strategy used in their deal-making or integration processes that they consider worthy of recognition as an industry “best practice”—one that could be emulated by other acquirers aiming to achieve better results for the acquirer, the seller, and ultimately their (now shared) clients. (Click here to submit your best practice.) 

• It takes two to tango: As in past years, many of the 2025 submissions describe best practices as they pertain to integration of acquisitions. Anyone who has been through an acquisition—either as a buyer or a seller—is acutely aware that “integration” is either where the magic happens or where the phrase “sunk cost” becomes a bitter refrain. We want 100% of the former, and we want to banish the latter. 
• The promised land: When integration is done right, the positive impacts for the combined business are remarkable. Just look at the results on post-transaction, first-year-of-integration performance from our Excellence in Acquisitive Growth Awards initiative. Skilled integrators report a median increase in profits of 78% one year into integration. They point to a median uptick in backlog of 28%. They see a median boost in revenues of 22%. And—importantly in this era of hard-to-find, hard-to-keep talent—the best integrators have been driving down the voluntary turnover rates of their acquisitions by almost one-fifth a year into their transactions.
• Best practices shared: The twin goals of our Excellence in Acquisitive Growth Awards initiative are (a) to recognize the best industry acquirers (note, you don’t have to make the biggest deals or acquire the most firms to be one of the industry’s best acquirers) and (b) create a forum for sharing best practices. A key part of the second goal is our series of panel discussions with the most skilled industry integrators. Last month at our Southeast M&A and Business Symposium in Miami, Casey Bello, Mergers and Acquisitions Manager at Terracon (Olathe, KS) (ENR #19) (recipient of the 2023 M&A Best Practices Award), and Dan Huntington, Executive Vice President, M&A Synergy Team at IMEG (Rock Island, IL) (ENR #48) (recipient of the 2023 Most Proficient and Prolific Acquirer Award) shared their insights on what makes for a great integration to a packed room. I asked the Morrissey Goodale panel moderators (who purely coincidentally lead our Acquisition Integration Services business line), Sarah Thornhill and David Thornhill (or “Team Thornhill” as we know them here; and no they are shockingly NOT related), to share one thing pertaining to best practices that they each took away from that discussion.
• Sarah Thornhill, Consultant (Denver office): “One of the most important best practices—or perhaps more accurately, a lens through which the entire integration process should be viewed—is the intentional effort to build trust with the staff of the acquired firm. While much of the early relationship-building—through conversations and shared meals—happens with the owner and a few senior leaders during the deal process, it’s critical to remember that, for most employees when you announce the acquisition, you are starting from square one.
  
  “As Dan Huntington emphasized, trust-building* can—and should—begin during due diligence. Even in early financial information requests, there are opportunities to lay the groundwork. For example, when asking for data, share how your firm currently approaches those calculations. Offering insight into how you run your business helps create transparency and fosters early credibility with those involved.
  
  “After the deal closes and the full staff learns about the acquisition, trust must be earned more broadly. Clear, timely, and honest communication is essential. Be transparent about what will and won’t change—and avoid leaving people in the dark. Most importantly, follow through on your commitments. Delivering on what you say builds lasting trust, which is essential for ensuring acquired employees feel valued, included, and confident in their place within the new organization.”
• David Thornhill, Vice President (New York office): “Strategies are executed by people—and executed well by informed and motivated people. Casey Bello emphasized the importance of “kitchen-table” issues—those personal, deeply impactful matters that people discuss at home with the ones they love.
  
  “She shared a vivid moment that’s stuck with her—being called into a meeting with Terracon President and CEO Gayle Packer and several of their acquisition partners who support the due diligence and integration process. To make a point, Gayle told the group that the company had been sold and that “we are all really excited!” Even though Casey knew this not to be true, she recalled the shock: “I still remember the feeling as my heart dropped into my stomach and seeing the room filled with questions and uncertainty.” Gayle then said something even more meaningful—asking them not to forget that feeling and to carry it with them into every future integration, using it to approach people with empathy and care.
  
  “This story reminds us that how and when we deliver messages matters.
  
  “Balancing who needs to know what—and when—is tricky. We judge ourselves by our intentions, but others judge us by our actions. So, in times of uncertainty, we must act with clarity, conviction, and compassion—and we must act quickly and decisively.”

We’ll once again provide a forum to share and discuss integration best practices at the Western States M&A and Business Symposium on June 11-13 at the beautiful five-star Wynn Las Vegas with over 200 AE industry executives and investors in attendance. This time our panelists will be Brenda Greig, Chief Human Resources Officer for Ardurra (Tampa, FL) (ENR #75), and Kate Johnson, M&A Employee Experience Director at Woolpert (Dayton, OH) (ENR #39).

This year’s M&A Best Practices Award will be presented at the symposium in June. If you would like your firm to be considered for the M&A Best Practices Award, we invite you to complete the simple application form here. The application should take no more than 20 to 30 minutes to complete. The Award recipient will be notified in early June.

*For an excellent discussion on trust—building and keeping it—check out our interview with Woolpert CEO Neil Churman for our latest Word on the Street Podcast. (Think authentic, empathetic, and logical.)

Thanks to Rickie Lee Jones for today’s title.

If you want to discuss integration or any other AE industry topic, contact Mick Morrissey at [email protected] or 508.380.1868. 

“Should We Open an Office There?” A Down-To-Earth Guide to Geographic Expansion

There’s a moment in every AE firm’s life when someone—usually a principal fresh off a red-eye and beyond overtired—leans across the table and says, “You know, we should really open an office in [insert trendy metro area here].”

Cue the internal panic (or excitement). Because deciding when and how to grow your firm geographically isn’t just about real estate and new markets—it’s about identity, timing, and risk tolerance, all neatly wrapped in a long-term lease.

This article is for CEOs staring down that decision. We’ll take a walk through how to recognize when it’s time (and not time) to grow and how to do it based on the most critical two-by-two in AE growth strategy: Are you known in the region? Are you offering something new or familiar?

Time to dig in.

Part 1: Should You Even Be Expanding?

Before we talk about how, let’s talk about whether. Geographic expansion is not a rite of passage—it’s a strategic decision. Here are the four most common signs it’s time to expand…and four signs it absolutely isn’t.

It might be time if:

• Your existing clients are pulling you into new geographies. You keep saying yes to work in a region where you don’t have an office. Eventually, “flying people in” becomes “maybe we should get a Convene workspace.”
• You’re bumping into growth ceilings in your current market. Local demand has plateaued, and further growth means casting a wider net.
• You’ve got replicable, in-demand expertise. If your firm is known for solving a specific, sticky problem—and others want that expertise in other markets—expansion can work.
• You have strong leadership talent ready for a new challenge. Geography without leadership is just logistics. A trusted principal with a suitcase and a vision is a very different story.

It’s definitely not time if:

• You’re bored. Expansion isn’t a cure for strategic drift. It’s a commitment—not a way to “shake things up.”
• Your margins are tanking at home. Fix your core business first. Expansion won’t solve operational dysfunction. It’ll just export it.
• You don’t have a plan beyond “let’s get an address there.” If your strategy fits on a sticky note, you’re not ready.
• Your bench is shallow. Opening a new office often means robbing Peter to staff Phoenix.

Okay, so let’s assume you’ve made it through this filter. You’ve got client pull, leadership horsepower, and something people want. Now we move to the real meat: how to expand.

Part 2: The Four Flavors of Geographic Expansion

Expansion isn’t one-size-fits-all. In fact, it breaks down neatly into a 2×2 grid—your old consulting friend. Your firm is either:

• Known or unknown in the region
• Offering existing or new services

Let’s walk through each quadrant—with the good, the bad, and the guidance for each.

A. Known in the Region/Offering Existing Services (a.k.a. “The No-Brainer”)

You’ve done projects here. Your clients know you. You’re just formalizing the relationship by getting a zip code.

Why it works: You’re already trusted. You’re minimizing risk. You’re likely already profitable in this region—now you’re just improving margin and client experience.

How to do it well:

• Lead with client proximity. Show them you’re serious about staying.
• Set up light at first—co-working, small office, hybrid team.
• Appoint a credible leader who already has relationships there.

Trap to avoid: Assuming your regional success will automatically scale just because you put a logo on a building. Execution still matters.

B. Known in the Region/Offering New Services (a.k.a. “The Opportunity Play”)

Maybe you’re already doing transportation work in Atlanta and want to offer environmental services. You’ve got a foothold. Now you’re trying to cross-sell.

Why it works: You’re building on trust. Clients already know your firm; they might be more open to seeing what else you can do.

How to do it well:

• Start with a “client whisperer”—someone who can bridge the existing relationship into the new service.
• Run a pilot project with a trusted client before investing heavily.
• Make sure the new service is actually good. “New to them” can’t mean “still figuring it out.”

Trap to avoid: Believing your brand carries unlimited goodwill. Even if your firm is beloved for one thing, clients will still want proof you can do this other thing well.

C. Unknown in the Region/Offering Existing Services (a.k.a. “The Market Entry”)

You know how to do the work, but nobody’s ever heard of you in this place. Classic “new kid in school” territory.

Why it works: You’re not reinventing your service. You’re just entering a new room with the same value proposition.

How to do it well:

• Hire a local who already has a network—not someone who knows the work, but someone who knows the people.
• Partner with a local firm for early visibility and credibility.
• Invest in business development before you sign a lease. Relationships matter more than signage.

Trap to avoid: Thinking your portfolio alone will win work. It won’t. Locality still matters. So do accents.

D. Unknown in the Region/Offering New Services (a.k.a. “The Double Black Diamond”)

This is where dreams—and budgets—go to die. You’re selling something people don’t know in a place that doesn’t know you.

Why it works: It often doesn’t—unless you have a very specific, unmet need and a killer team with a proven track record elsewhere.

How to do it well (if you must):

• Acquire a firm that already has the reputation and relationships.
• Focus on a highly specific problem you’re uniquely positioned to solve.
• Expect a long ramp-up. Budget accordingly. Triple it, just to be safe.

Trap to avoid: Believing you can out-market obscurity and unproven capability. You can’t. Especially not with AE firm margins.

Part 3: Practical Tips for Geographic Success

No matter which quadrant you’re in, here are a few universal truths about geographic growth:

• Don’t let real estate decisions lead your strategy. A nice lease in a hot zip code is not a strategy. It’s a liability until proven otherwise.
• Your first hire in a new market is everything. Find someone who can win work, not just do it. If they can do both, give them a raise.
• Culture doesn’t travel by email. Be intentional about integrating new offices into your culture. Otherwise, you’ll end up with mini-fiefdoms.
• It takes longer than you think. Seriously. If you don’t have a two- to three-year commitment, don’t bother. This isn’t a pop-up store.

Part 4: A Few Final Thoughts

Most AE firm leaders want to grow. That’s baked into their DNA. But “growth” isn’t always about more offices or new zip codes. Sometimes it’s about doubling down where you are—deepening relationships, improving services, becoming indispensable in your current geography.

The question isn’t “Should we grow?” It’s “Will this kind of growth make us better?”

If the answer is yes, go for it—eyes wide open, wallet braced, team aligned. If the answer is no, that’s not stagnation. That’s wisdom.

Not every firm needs to conquer the map. Sometimes, being exceptional in the right places beats being average in a lot of them.

For help with your strategic growth plan, call/text Mark Goodale at 508.254.3914 or email [email protected].

Market Snapshot: Washington

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 Washington.

Washington Economic Performance and Outlook Grade*: B

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

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

While demonstrating strong population and economic growth, Washington state faces an historic $12 billion budget deficit over the next four years. The Evergreen State ranked sixth in real GDP growth between 2020 and 2024, according to the U.S. Bureau of Economic Analysis, and the University of Virginia’s Cooper Center forecasts that the state’s population will rise from 7.7 million in 2020 to 8.5 million in 2030, the fifth-largest bump in the country. By 2050, Washington’s population is projected to be 10.2 million, making it the tenth-most populous state (up from thirteenth today). State lawmakers approved a six-cent gas tax hike to cover transportation budget shortfalls due to skyrocketing construction costs, flagging revenue, and a court-ordered removal of state-owned culverts blocking fish migration in western Washington, which could cost over $7 billion. The country’s leading hydroelectric power producer, Washington is in the forefront of reducing greenhouse gas emissions. The 2019 Clean Energy Transformation Act committed Washington to an electricity supply free of greenhouse gas emissions by 2045, and the 2021 Climate Commitment Act instituted a cap-and-trade program for major greenhouse gas emitters. See below for regional highlights in Washington:

• Seattle: Driven by a strong tech industry and immigration, Seattle’s population grew 40% in the last 20 years. In November, voters approved an eight-year, $1.55 billion transportation levy that will spur projects. Sound Transit is undertaking the country’s largest mass transit expansion that will double the size of the light rail system and add 46 miles of bus rapid transit by 2041 at an estimated cost of $148 billion. 
• Spokane: Eastern Washington hasn’t seen the same population explosion as the Puget Sound region, but Dodge Data & Analytics projects construction starts to grow by 25% in 2025. The North Spokane Corridor megaproject includes improvements in freight and commuter transportation. Spokane International Airport is undertaking a terminal renovation and expansion, and a bus rapid transit system is in development. 
• Tacoma: The city’s port is undertaking expansion projects, but lowered international trade due to tariffs could impact the regional economy.

For sector-specific data and insights for Washington 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

Last week saw another two transactions in the West: With two featured deals in Louisiana and two more in the Western U.S., industry M&A activity is now up 4% over the past year. We reported domestic transactions in LA, NM, AZ, VA, RI, AL, MS, and PA. Abroad, three transactions were announced in the UK. You can check all the week’s M&A news here.