Engineering Influence Podcast: Mick Morrissey Offers Insights into the M&A Market

Business Management / Industry News

September 1, 2020

Engineering Influence Podcast: Mick Morrissey Offers Insights into the M&A Market

On the latest Engineering Influence podcast, Morrissey Goodale Managing Partner Mick Morrissey discussed the current state of the M&A market in the engineering industry and offers insights and advice for potential sellers,

“We anticipate that we’re going to see lots more M&A activity and an uptick in M&A activity as we head into the back end of the year here in Q3 and Q4,” Morrissey said. “I wouldn’t be surprised if we end up the year very similar to where we were in 2019, which was a record year for deals, or maybe 5 percent or so beneath that level.”

Morrissey said the market is strong for well-positioned firms. “Buyers are looking for quality,” he said, “Firms that have got really strong backlog, that have got something special about them, that serve attractive clientele, that are located in a great part of the world in terms of the outlook for engineering services, or that have proprietary offerings that they have developed and where there is demand, they will continue to see strong demand and command high multiples.”

For owners looking to sell their firms, Morrissey recommends beginning the process long before it goes on the market.

“The best time to sell is when the economy is doing well, when your market is doing well, when your firm is doing well from a financial perspective, and before you’re 60, because then typically a buyer is going to lock you up for three years,” he said. “Most owners don’t figure that out and they end up looking to sell when the economy is not good, when their markets are not good, when their firm’s financial performance is weak, and when they’re 65-plus. They lose all of the leverage that they could have had in any negotiations,”

Click here to listen to the podcast.

 

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