Engineering and Construction Market to Grow in 2023
Global engineering services market to reach $1.2T
Global construction market to grow at 6.6% CAGR
Industrial IoT and cooperation between OEMs and ESPs to drive growth
M&A activity in industrials sector to increase due to IIJA and IRA
Public Company Valuations
CFAW Select Engineering Construction Index up 3.4% in Q1 2023
12-month return on index increased 4.4%
All subsectors of Engineering Construction increased in Q1 2023 except Industrial Business Construction
Civil Engineering Services had highest median revenue and EBITDA multiple of 1.2x and 14.4x, respectively
Highway, Street, and Bridge Construction had median revenue and EBITDA multiple of 0.8x and 9.9x, respectively
Residential Construction had median revenue and EBITDA multiples of 0.9x and 5.2x, while Industrial Business Construction had median revenue and EBITDA multiples of 0.5x and 11.7x, respectively
Mergers and Acquisitions
M&A activity in industrials sector slowed down in 2022
Increase in acquisitions of companies that build and provide maintenance services for highways, bridges, roads, and airports anticipated in 2023 due to IIJA
US government has pledged to invest $485.0 million in green technologies and materials through IRA by 2023
Majority of bidders in the infrastructure maintenance and remediation market expected to be strategic acquirers as opposed to financial investors due to capital-intensive nature of the industry
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