Mergers and acquisitions in the AEC industry can often feel like navigating a maze. They’re critical for driving growth, diversification, and staying competitive. At the same time, they're complex and demanding. So how do you make sure your M&A strategy leads to more successful business outcomes?
To find out, we turned to the expertise of one of our partners, ISG. Alec Pfeffer, CFO, and Laura Drager, Marketing Manager, offered their insights and practical experience. They know what they’re talking about – ISG has doubled in size since 2019 through a series of successful mergers and acquisitions. Let's dive into their M&A best practices.
Finding the right fit: Evaluating potential M&A partners in the AEC Industry
A successful mergers and acquisition strategy starts with evaluating the right target companies. At ISG, this means looking beyond the numbers and focusing on cultural alignment and shared values - key factors in the AEC industry, where collaboration is essential. As Pfeffer puts it, “We have to be the biggest protectors of our culture.” This approach helps prevent conflicts and sets the stage for a harmonious post-merger integration.
Making cultures collide (in a good way)
For AEC firms, success in mergers and acquisitions isn’t just about financials – it's about people. Cultural integration is essential. At ISG, they prioritize partnering with firms that share their core values.
“Stick to your core values, and success will follow,” Says Drager. This approach ensures that AEC M&A transactions can bring value to the bottom line as well as the entire organization.
Keeping the talent you acquire after M&A in the AEC industry
Retaining top talent post-merger is key to long-term success — especially in the talent-driven AEC industry. ISG focuses on supporting new team members with the resources, training, and development opportunities they need to thrive. This helps ensure that acquired talent stays engaged and contributes to a smooth integration process.
Overcoming common post-merger hurdles
The initial phase post-merger can be the most challenging part of any mergers and acquisitions strategy. To ease this transition, ISG has crafted robust processes that streamline operations. By familiarizing new teams with existing procedures after acquisition, ISG minimizes disruptions and speeds up the benefits of the merger. As Drager notes, clear communication helps lighten the load and improve processes.
Client communication during AEC M&A
During mergers and acquisitions activity in the AEC industry, client management is critical. ISG proactively maintains clear communication throughout the merger and acquisition process to manage expectations and maintain trust. This ensures continuity in service delivery and a smoother client experience.
Financial metrics: The backbone of M&A success
Financial health is essential for successful mergers and acquisitions in the AEC industry. ISG keeps a close eye on financial performance to ensure seamless integration. “We have built a robust framework for monitoring the business,” says Pfeffer. Transparency builds stakeholder confidence and supports sustainable growth.
Bridging technology gaps
Technology integration can be a major challenge during mergers and acquisitions. ISG approaches this strategically, ensuring all teams are aligned with systems and processes. A focus on standardized onboarding and effective training is necessary to help everyone feel confident in their roles and understand any changes that could impact the team.
Navigating the regulatory maze
Regulatory compliance is non-negotiable in any mergers and acquisitions strategy. ISG emphasizes detailed due diligence and thorough documentation to meet AEC industry standards and reduce legal risks. This helps establish a strong foundation for continued success.
Learning and improving with every merger
Every M&A deal is a learning opportunity. ISG continually refines its mergers and acquisitions strategies through hands-on experience, fostering a culture of continuous improvement that drives stronger outcomes over time.
Executing a successful merger and acquisition strategy in the AEC industry requires a balance of strategy, cultural awareness, and communication. By focusing on these best practices, businesses can confidently navigate the complexities of mergers and acquisitions.
Looking to make a business transition easy while freeing up more time to do the work that matters? Learn how Unanet can help; schedule a demo today.
