EFCG is proud to have contributed expert insights to Environment Analyst's latest report, which offers comprehensive and in-depth insights into the rapidly evolving M&A landscape within the environmental and sustainability consulting sector.

At a time when mergers and acquisitions are reshaping the future of the Architecture, Engineering, and Consulting (AEC) industry, EFCG’s Managing Partner and Head of M&A, Jessica Zofnass Barclay, offers a clear perspective on the market forces, challenges, and opportunities facing today’s firms.

EFCG’s Perspective: Navigating a Competitive Market

As the leading strategic and financial advisor to the AEC industry, EFCG has advised on more than 240 M&A transactions and brings unmatched insight into the motivations behind deal activity. The report highlights several of these trends, including the growing trend of firms—both large and mid-sized—turning to acquisitions not just for scale, but to gain access to critical talent and specialized technical expertise.

“It used to be that the big firms would only make big acquisitions,” explains Zofnass Barclay. “That’s not the case anymore, we're also seeing micro acquisitions."

This shift is driven in large part by backlog pressures and industry-wide talent shortage.

Complex Challenges Facing Employee-Owned Firms

The report also surfaces capital structure challenges for some employee-owned firms—particularly those navigating generational transitions. While the model remains strong in foundation to the AEC industry, firms are increasingly evaluating outside capital as a means to scale and compete with PE-backed peers.

“There are some employee-owned firms that are finding that their capital structure is not working for them. And they are thinking about taking on outside capital to continue to grow and scale, especially because there have been so many success stories around private-equity backed firms,” Zofnass Barclay notes.

At the same time, she recognizes that many employee-owned firms remain fiercely independent and successful, so it’s all about evaluating the ownership structure that will best help accomplish your goals.

Strategic Insight on Technology, Divestitures & Sector Tailwinds

In addition to talent and ownership themes, the report explores divestiture activity and the rising importance of technology strategy in firm valuations. EFCG has long helped clients assess how innovation—from digital tools to SaaS products—can position a firm to achieve outstanding success.

Sectors like power, energy, and water are also highlighted as areas of growing investor interest, where firms are increasingly turning to M&A as a way to scale rapidly in high-growth markets.

“We are seeing a lot more interest in and focus on power and energy engineering firms.” Zofnass Barclay emphasizes.

Why This Matters:

EFCG’s contribution to this report reflects our mission: to provide a strategic edge to AEC firms to advance the industry. With over three decades of industry specialization, we are committed to help AEC firms navigate transformation with data, clarity, and strategy. For questions on M&A in the AEC industry, you can email Jessica Zofnass Barclay directly at jbarclay@efcg.com.

Access the full report by Environment Analyst: https://www.home.environment-analyst.com/ma-opportunities

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