Strong M&A Swell is Still Making Waves But is the Wind Shifting?
The M&A swell over the last two years shows no signs of dissipating, and it certainly has the potential to get even bigger. But the wind is making conditions out there a little less predictable and it remains to be seen whether 2022 is in for a legendary ride or blown out conditions.
M&A Activity for the environmental industry reaches record levels fueled by climate change, coastal resiliency and esg
Last year 2020 Environmental Group reported the environmental consulting industry weathering the COVID storm as an “essential business” along with a prediction that the industry might see a modest 4-6% drop in FY2020 revenues versus the record high year for the industry in 2019.
What occurred over the last 18 months was not only a surprise but cause to celebrate the heightened importance of the environmental industry as a whole.
2020 Environmental Group advises Paleo Solutions on its sale to Stantec
2020 Environmental Group ("2020") is pleased to announce that Paleo Solutions, Inc. ("Paleo"), a full-service natural resources and cultural resources management consulting firm headquartered in Monrovia, CA, with offices in with offices in Redlands, CA and Denver, CO, has been acquired by Stantec. 2020 initiated the transaction and served as the M&A Advisors to Paleo.
2020 Environmental Group advises WestLand Engineering and Environmental Services on its merger with EM Strategies
2020 Environmental Group ("2020") is pleased to announce that WestLand Engineering and Environmental Services, Inc. ("WestLand"), an engineering and environmental services firm headquartered in Tucson, AZ has merged with EM Strategies, Inc. an environmental services firm located in Reno, NV. 2020 initiated the transaction and served as the M&A Advisors to WestLand.
2020 Environmental Group advises PES Environmental on its sale to NV5
2020 Environmental Group ("2020") is pleased to announce that PES Environmental, Inc. ("PES"), an environmental and engineering consulting firm headquartered in Novato, CA, with offices in Seattle, WA and Veneta, OR, has been acquired by NV5. 2020 initiated the transaction and served as the M&A Advisors to PES.
2020 Environmental Group advises SWCA on its Acquisition of Sycamore Environmental Consultants
2020 Environmental Group ("2020") is pleased to announce that SWCA, a nationwide environmental consulting firm headquartered in Phoenix, AZ, has acquired Sycamore Environmental Consultants ("Sycamore"). 2020 served as the M&A buy-side advisors to SWCA and initiated the transaction with Sycamore.
2020 Environmental Group advises EarthCon on its sale to WSP
2020 Environmental Group ("2020") is pleased to announce that Earth Consulting Group ("EarthCon"), a 90-employee US-based environmental and engineering consulting firm headquartered in Atlanta GA, with offices in Texas and California, has been acquired by WSP. 2020 initiated the transaction and served as the M&A Advisors to Earthcon.
2020 Environmental Group advises Environmental Planning Group (EPG) on its sale to Terracon
2020 is pleased to announce that Environmental Planning Group ("EPG"), an environmental planning, permitting and design consulting firm based in Phoenix, AZ, has been acquired by Terracon. 2020 initiated the transaction and served as the M&A advisors to EPG.
2020 Environmental Group advises Flight Evolved on its sale and recapitalization to Copley Equity Partners and merger with Aethon Aerial Solutions
2020 Environmental Group is pleased to announce that Flight Evolved, a digital transformation leader with specialized expertise in geospatial data analytics using drones, has been acquired by Copley Equity Partners in a simultaneous merger with Aethon Aerial Solutions. 2020 served as the M&A advisors to Flight Evolved on its recapitalization and sale process to Copley, and advised FE on the co-merger agreement with Aethon.
2020 M&A Update: COVID-19 as a Force Majeure Event?
Considerations for M&A Strategies and Valuations
The global COVID-19 pandemic has disrupted the business of environmental and engineering consulting, and is causing buyers and sellers to reassess M&A timing and strategies. However, it could also prove to be an unexpected catalyst of M&A activity, further driving industry consolidation, buyers looking for deals, and sellers deciding now is the time to get their equity off the table.
We took a closer look at M&A under these uncertain times, and found some interesting insights, including COVID as a force majeure event for valuations and other M&A considerations.
Environmental Considered “Essential Business” under COVID-19 Restrictions
State and Federal Agencies, and Private Sector Clients Instruct Environmental Firms to Continue with Projects as Scheduled
In reviewing the rapidly changing climate amid the COVID-19 pandemic, 2020 Environmental Group is hearing from our industry contacts across the U.S. that public agencies as well as certain private sector clients that support Critical Infrastructure, Energy, and Environmental Protection are considered “essential businesses” and that work must continue. And by extension, the environmental consultants who support these critical projects are also deemed essential and their project work must continue.
2020 Advises Environmental Partners Inc. on it’s Sale to TRC
2020 is pleased to announce that Environmental Partners Inc ("EPI"), an environmental geosciences consulting firm based in Issaquah WA (suburb of Seattle), has been acquired by TRC Companies ("TRC"). 2020 initiated the transaction and served as the M&A advisors to EPI.
This acquisition is part of TRC’s strategy to bolster its capabilities in geo-environmental services and growth strategy in the Pacific Northwest region and position TRC as the top player in environmental engineering and remediation in the Greater Seattle market.
2019 M&A Trends
Leadership Pipeline = Deal Success
One of the top M&A themes we are seeing today -- buyers asking sellers “can you please tell us more about your management succession plan and second tier leadership team?” The reason is quite simple. While buyers are investing in a company’s long-standing reputation, client relationships, expert services and financial performance, it is the people that represent the future of the company. And knowing the depth, level of development and management responsibility of a seller’s 2nd and even 3rd tier team is an important component to getting a deal done, and what can drive up valuations, or cause deals to fall apart.
2018 M&A Trends
When Evaluating Deals – Culture is King
When considering M&A, culture is king, buyers are structuring deals to include key employees, and levels of M&A activities and valuations are still high. These are just a few of the key themes we took away from this year’s Transaction Advisors Annual Conference on the latest trends, strategies and best practices in mergers and acquisitions. What we heard from M&A practitioners at companies both large and small, confirmed much of what we’re seeing here at 2020 with our clients and transactions.
2020 charts growth and M&A strategies for the environmental industry in 2018
In this timely webinar Al Spiers, 2020 Environmental Group's CEO, discusses proven strategies for achieving growth in today's environmental markets. Topics include: overview of the environmental industry today; what markets are hot and not; strategies for expanding into new markets and geographies; improving key performance metrics to support investment goals; and opportunities for using M&A as a growth strategy. Also discussed are M&A strategies for companies that may be considering selling and merging with a new, larger strategic partner.
M&A Market outlook - 2020 perspectives
Valuations at Historic Highs, Number of Deals at Historic Lows
Industry surveys are reporting 2017 M&A valuations for environmental consulting and engineering (C&E) firms at 10-year highs. While this would seem to be good news for sellers, what was a surprise to many, including us, was that 2016 and the start of 2017 actually saw a dramatic decline in M&A deals in the environmental C&E sector. So, what are we to make of this disparity in the market? Will the trend continue? Thinking about this reminded me of one of my favorite Joni Mitchell songs, Both Sides Now, because clearly there are two sides to this story.
2020 expands to pacific northwest and Opens Seattle Office
We're very excited to announce 2020's expansion to the Pacific Northwest and opening of our Seattle Washington office, scheduled for July 2017. Our presence in Seattle will allow us to better serve our clients in the PNW and nationally. Dan Spiers, 2020 Partner and Co-Founder, will be heading up the Seattle office.
2020 Advises E2 ManageTech on the sale of its Environmental Division to EnSafe
2020 Environmental Group (2020) is pleased to announce the sale of E2 ManageTech’s (E2) Environmental Services Division to EnSafe. 2020 initiated the transaction and served as the exclusive M&A advisor to E2 as they sought to divest its Environmental Services Business Unit and further focus on the rapid growth of its Environmental Management Information Systems (EMIS) practice.
2017 U.S. Environmental Consulting & Engineering Industry market Report, Published by Environmental Business Journal
2020's CEO, al spiers, featured in M&A Market Perspectives
The U.S. Environmental Consulting & Engineering Industry (updated June 2017) is the definitive strategic business information resource on the U.S. Environmental Consulting & Engineering Industry. Recent market forecasts for 2017-2018 based on new EBI surveys and client-sector economic forecasts are balanced with historical perspective on the evolution of the industry and leading players in this encyclopedia of the C&E industry. EBI Report 727's 2,500+ pages analyze markets, competition, customers, management and service trends in the $30-billion U.S. environmental consulting & engineering market, as well as trends and leaders in the $68-billion global C&E market.
2020 Advises PBS on its Acquisition of HDJ
PBS Engineering and Environmental Inc, a 140-person Portland OR based environmental and engineering consulting firm, has acquired HDJ Design Group, a 60-person civil engineering and planning firm in Vancouver, WA.
2020 Environmental Group served as PBS’s Strategic Growth and M&A Advisor on the HDJ transaction, including evaluation of synergies, financial due diligence, Letter of Intent and Sale and Purchase Agreement.
2020 Advises Iris Environmental on its Sale to RPS Group
2020 Environmental Group (2020) is pleased to announce the successful sale of Iris Environmental (Iris) to RPS Group for a maximum consideration of $13.5 million, all payable in cash. 2020 initiated the transaction and served as the exclusive M&A advisor to Iris.
Founded in 1999, Iris has its headquarters in Oakland California with a second office in Irvine California. The company employs about 35 staff and undertakes projects associated with managing environmental liabilities and risk primarily for private sector clients in California, particularly technology companies in Silicon Valley. In 2014, Iris had revenues of $10.1 million.
2020 Advises Vironex environmental on its sale to Cascade
2020 is pleased to announce the successful sale of Vironex Environmental Field Services, Inc. (Vironex) to Cascade Drilling, L.P. (Cascade). 2020 initated the transaction and served as the exclusive M&A advisor to Vironex.
The combined company now employs approximately 590 people across 35 offices with over 250 drill rigs enabling both Vironex and Cascade to better serve clients on a national level.
2020 Advises Jacobs Associates in its Merger with McMillen
San Francisco based engineering and consulting firm Jacobs Associates and Boise based engineering, construction and environmental firm McMillen LLC announced that the two firms have merged to form McMillen Jacobs Associates.
The combined resources of the merger provide clients access to 380 staff located in 19 offices across North America, New Zealand, and Australia.
2020 Wins Environmental Industry Leadership Award
2020 Environmental Group is honored to receive the Environmental Business Journal’s Environmental Industry Leadership Award for opening new paths to strategic growth and value for environmental businesses across the U.S. and internationally. According to EBJ, "2020 has created a new discipline of management consulting that bridges the institutional knowledge of this mature industry with new tools for the next generation of environmental business leaders. 2020's partners have provided thought leadership to a growing list of small, mid-size and global firms serving as advisors on strategic growth, financial performance, ownership transition, and mergers and acquisitions."