the engineering consulting global m&a report 2019 · 2019-02-27 · the engineering consulting...
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2009 20142010 20152011 20162012 20172013 2018
0.6x 0.8x
5.0x
9.3x1 Jan 2009 100
31 Dec 2018212
Note 1: On page 4 we discuss the S&P 500 and FTSE 100 indices as benchmarks for comparison to the EECSPI.
Note 2: The Equiteq Knowledge Economy Share Price Index (EKESPI) comprises of five segmental indices including the EECSPI.
Source: Equiteq M&A and share price data throughout the report relies on third party sources, see page 4 for more information.
No. of transactions 2018 vs. 2017
Average deal values
2018 vs. 2017
20%1%
Average deal size 2018
of buyers are financial buyers
Median deal size 2018
of buyers are listed strategic buyers2009 20142010 20152011 20162012 20172013 2018
0.6x
11.2x10.8x
0.7x
212
deal
s
$31.4m
9%
$24.7m
29%
The Engineering Consulting Global M&A Report 2019
The Engineering Consulting Global M&A Report 2019KEY FINDINGS
M&A activity remains below long-term averages, but valuation metrics continue to rise driven by limited capabilities within in-demand spaces
Deal volumes Revenue valuation multipleEBITDA valuation multiple
Share price index Revenue valuation multipleEBITDA valuation multiple
13%6%
FTSE 100 return 2018
3%
EECSPI return 2018
S&P 500 return 2018
112%
EECSPI return 10 years
4%
EKESPI2 return 2018
151%
EKESPI2 return 10 years
The Equiteq Engineering Consulting Share Price Index (EECSPI)1 fell, but outperformed broader equity market indices
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Selected notable transactions
Regional M&A review
Profiled buyers
Hot and emerging spaces for buyer demand
McIntosh PerryAltran DekraCBRE Stantec
Cross-border M&A accounted for 21% of all deals
102 82 11 13 4Deals Deals Deals Deals Deals
15% 26% 15% 44%
North America Europe Asia-Pacific Australia & NZ Rest of the World
Building information
modelling, VR & AR
High-tech manufacturing
Predictive engineering
analytics
IoT product design
Target Target industry Buyer
Alpiq Engineering and construction services Bouygues and Colas
Capita [Supplier Assessment Services]
Pre-qualification, and health and safety accreditation services Warburg Pincus
EnerMech Energy and infrastructure services Carlyle
Essential Design Design and engineering consulting PA Consulting
MindtribeProduct hardware engineering
consulting Accenture
Noveen Consulting Healthcare facility consulting CBRE
Peter Brett Associates Development and infrastructure consulting Stantec
Technology & Strategy Engineering, IT, digital and project management Ardian
© Equiteq Advisors Ltd. 2019
Artificial intelligence &
machine learning
0%
Engineering testing
services
CB&I Technology, engineering and construction for energy McDermott
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The Engineering Consulting Global M&A Report 2019
Equiteq is a global leader in providing strategic advisory and merger & acquisition services to owners of IP-rich technology and services businesses
There are unique challenges to value growth and equity realization for shareholders and investors in the knowledge economy. Equiteq helps owners transform equity value and then realize maximum value through global sale processes.
Sold to
Equiteq advised on the transaction
Accenture
OrbiumBusiness & Technology
Consulting
Sold to
Equiteq advised on the transaction
A.T. Kearney
CervelloData Analytics Consulting
Sold to
Equiteq advised on the transaction
ABeam Consulting
LightStream AnalyticsData Analytics
Merged with
Equiteq advised on the transaction
gobeyond
OEE ConsultingCustomer Journey
Specialist
Sold a majority stake to
Equiteq advised on the transaction
Decision Inc.
CoppermanSAP BPC Specialist
Merged with
Equiteq advised on the transaction
The Illuminera Group
DBM Consultants Market Research
Sold to
Equiteq advised on the transaction
PA Consulting
Essential designInnovation Strategy
Joined
Equiteq advised on the transaction
Deloitte
MexiaMicrosoft Integration
Consulting
Merged with
Equiteq advised on the transaction
YCP Holdings
SolidianceManagement Consulting
MBO backed by
Equiteq advised on the transaction
FPE Capital
The NAV PeopleMicrosoft Dynamics NAV
Partner
Sold to
DXC Technology
System PartnersSalesforce Consulting
Equiteq advised on the transaction
Received investment from
Literacy Capital plc
Dartmouth Partners Recruitment Consulting
Equiteq advised on the transaction
Selected recent Equiteq transactions:
If you would like to enquire about receiving Equiteq’s comprehensiveEngineering Consulting Global M&A Report 2019, or if you would like to discuss your current strategic objectives as a business owner or acquisition strategy as an acquirer, please contact your regional office:
London: +44 (0) 203 651 0600 New York: +1 212 256 1120 Paris: +33 (0)173 053 941 Singapore: +65 3109 1955 Sydney: +61 2 9051 9007
Email: [email protected]: equiteq.com
About Equiteq
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© Equiteq Advisors Ltd. 2019
Disclaimers and important information
Equiteq is an M&A and strategic advisory firm that seeks to provide you, the owners of knowledge-intensive services businesses, with the best possible information, advice and experience to help you make decisions about selling your firm and preparing it for sale. What follows is a legal disclaimer to ensure that you are aware that if you act on this advice, Equiteq cannot be held liable for the results of your decisions. The information is not intended to provide tax, legal or investment advice. We make no representations or warranties in regard to the contents of or materials provided in this report, and exclude all representations, conditions and warranties, express or implied arising by operation of law or otherwise, to the extent that these may not be excluded by law.
Any reproduction or distribution of this document, as a whole or in part, or the disclosure of the contents hereof, without the prior written consent of Equiteq, is prohibited. All recipients agree they will keep confidential all information contained herein and not already in the public domain.
This report has been compiled by Equiteq’s dedicated market intelligence team with unique insights from Ramone Param, the firm’s thought leadership director. The report utilizes multiple data sources including proprietary newsfeeds, press releases, various third-party information sources and data services. Additionally, our daily activities in the M&A marketplace with buyers and sellers provide insights into emerging trends and informs our research report’s point of view.
It is important to note that financial data, including valuation multiples, are derived from various sources including S&P Capital IQ and PitchBook information databases, combined with findings from our daily activities in the market with buyers and sellers that we utilize on an anonymized basis. Average and median results are adjusted for interpreted anomalies and outliers by segment. Deal volumes (the number of transactions completed) for the latest period being analyzed are estimated based on reported deal volumes and the application of an adjustment factor to account for transactions completed, but not immediately captured in our subscription databases. Due to refinements in data, adjustment methodologies and market definitions, as well as updates to our information sources - historic figures may vary between our reports.
Past performance does not guarantee future results. Future returns will likely vary. Certain information contained herein concerning performance data or economic or industry trends is estimated or provided by or based on or derived from information from third party sources. Equiteq believes that such information is accurate and that the sources from which it has been obtained are reliable. Equiteq cannot guarantee the accuracy of such information, however, and has not independently verified the assumptions upon which such information is based. We shall not be liable in contract, tort (including negligence) or otherwise for indirect, special, incidental, punitive or consequential losses or damages, or loss of profits, revenue, goodwill or anticipated savings, or for any financial loss whatsoever, regardless of whether any such loss or damage would arise in the ordinary course of events or otherwise, or is reasonably foreseeable or is otherwise in the contemplation of the parties in connection with this report. No liability is excluded to the extent such liability may not be excluded or limited by law.
Note 1: The returns of the S&P 500 and FTSE 100 indices have been provided in this presentation as appropriate benchmarks for comparison to the Equiteq Engineering Consulting Share Price Index. The S&P 500 represents the Standard & Poor’s 500 Index; The FTSE 100 represents the Financial Times Stock Exchange 100 Index. The FTSE 100 represents the 100 largest companies listed on the London Stock Exchange, by market capitalization. We believe it is relevant to compare the Equiteq Engineering Consulting Share Price Index with broad U.S. and international public equities. These indices each focus on large capitalization public equities and can be viewed as proxies for the market overall. Notwithstanding the foregoing, there will not necessarily be a correlation between the performance of the Equiteq Engineering Consulting Share Price Index, on the one hand, and either of these indices, on the other hand. Investments cannot be made directly in indices and such indices may re-invest dividends and income.
Publication date: 15 February 2019