Determining the value of a construction company in a merger and acquisition (M&A) transaction is unlike most other businesses. The numerous variables surrounding construction operations makes predicting a valuation challenging, and sometimes the highest value to the seller requires unique terms and conditions in a sale.
RIDGEWOOD, NJ - MMC Corp recently announced the acquisition of Building Control Services, a building automation and service provider located in Reno, NV. With a strong reputation in Northern Nevada for its digital controls installations, service, and system optimization capabilities.
MMC Corp recently announced the acquisition of Stroh Corporation. PCE Investment Bankers sourced the acquisition and served as financial advisor to MMC Corp. Stroh is a union mechanical and electrical service and construction company based in Des Moines, Iowa. With a strong reputation in Iowa for both its mechanical and electrical services, Stroh brings a strong background, solid client base, and increased resources to the MMC Corp family of companies.
PCE Investment Bankers is pleased to announce we have been named the 2015 Best in Building Products & Construction M&A by Acquisition International.
There have certainly been better days – and even better years – for the nation’s construction industry. But extended periods of strong growth have turned sluggish making a once vibrant industry fall back to levels not witnessed in nearly a decade. As economic conditions improve, construction is sure to take off again but how soon that will happen is the question on everyone’s mind.
Analysis of the American Recovery and Reinvestment Act of 2009
America’s history tells a story of innovation followed by periods of significant investment in technology and infrastructure that created competitive advantages for the United States in the global marketplace. In the 1950s, significant investments were made to create the United State’s transportation networks, which became one of the nation’s greatest assets. Today, America’s infrastructure is in poor condition, deteriorating rapidly, and in desperate need of significant investment.
Volume and price are inversely related – the flip sides of one coin. Classically, the lower the price, the higher the volume and vice versa. Florida homebuilding turned this relationship on its head with accelerating prices and volumes from 2001-2005 before collapsing volumes and declining prices ever since.
The dramatic reversal of the home building industry raised concerns of a far reaching domino effect in which the entire US economy weakened into recession. One contravening factor has been the strength of the non-residential construction industry, experiencing a significant surge of its own, and helping to mop up the unemployment created from the housing downturn.
The tides in Nova Scotia’s Bay of Fundy are the most extreme in the world with a 56 foot variance between high and low. Consequently, Canadian fishermen value how well the ship’s captain knows each and every prominence and tributary.
PCE predicts a continued and accelerated trend of consolidation for Florida home builders very much akin to what we have seen in the banking industry. The large national home builders are changing the competitive landscape of the industry and, by the end the decade, will control a dramatically increased market share of the single-family permits in Florida.
Largest Transactions Closed