Beaton Capital is leading M&A adviser to architecture and design firms. Over the last three years we have seen a continuation of global aggregation and consolidation of the professions in the ‘built’ sector, which has had a direct impact on the Australian market. Join us in Sydney on 14 May 2015 to discuss these trends and the implications for your firm, register your interest here to attend our beatonlive Growth, Ownership & Exit Strategies Conference.
Global M&A activity in architecture
Australia is ranked the 4th most active country originating global M&A transactions in the architecture sector although every country is significantly behind the highly active USA.
Leading originators of architecture M&A transactions globally by country:
Major sources of supply of architecture M&A transactions:
As expected the USA is the largest originator and source of architecture M&A transactions but of interest is the split of domestic to cross-border transactions. Across the 3 years, 119 of the 135 transactions were solely in-country (i.e. both buyer and seller were located in the same country). This is a much different picture to say the consulting engineering industry which has seen greater levels of globalisation through cross-border M&A. The architects appear to be less focused on globalising relative to strengthening their domestic footprint, with the exception of the US where one firm had a demonstrable globalisation strategy.
Global public/private/private equity buyer split:
M&A activity in Australia
The 3 years from 2012-2014 saw only 6 transactions involving Australian architecture firms.
3 of the 6 transactions involved both an Australian buyer and seller while the other 3 transactions saw acquirers originating from China, Thailand and USA.
Given the nature of the profession it is not surprising that all of the buyers of Australian architecture practices were privately owned.
3 of the 6 deals saw a specialist architecture firm acquiring another while the other 3 buyers were broader, multi-discipline design firms buying to bulk up their architecture offering.
Interested in knowing more? Register using the button below to attend our beatonlive Growth, Ownership & Exit Strategies Conference on 14 May 2015 in Sydney.
Other related blogs and thought leadership from Beaton Capital can be found here:
- Whose interests are served by M&A in consulting?
- Who is buying Australia’s Consulting and Environmental Engineering firms? – The facts & figures
- Selling the firm – does size matter?
- How much is my firm worth?
- Merging to build a future or merging to have a future?
- 20 questions to test your resolve: do you really want to sell your firm?
- Earn outs: not worth the paper they are written on?
- Succession: trade sales – gain, pain, both?
- Succession: mergers are minefields
- Takeaways from a recent sell mandate – points to consider when it comes to selling your firm
This post was authored by:
Marc Ewen, Senior Analyst, Beaton Capital
Warren Riddell, Partner, Beaton Capital
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